The 0.25% Rule: An Enormous Tax Advantage
For employees with company cars, the 0.25% rule is one of the most attractive reasons for an electric car. Instead of paying tax on 1% of the gross list price per month as a benefit in kind (as with combustion engines), only 0.25% applies for EVs. This can mean savings of several hundred euros per month.
How Does the Rule Work?
Anyone who also uses a company car privately must pay tax on the private portion as a benefit in kind. The 1% rule for combustion engines means: 1% of the gross list price is added to gross salary monthly and taxed normally. For EVs with a gross list price up to EUR 100,000, only 0.25% applies instead (for acquisitions after June 30, 2025; previously the limit was EUR 70,000). For more expensive EVs, the rate is 0.5%.
Calculation Example: Concrete Numbers
Let us take an EV with a EUR 40,000 gross list price and a combustion car at EUR 35,000 for comparison. EV: 0.25% of EUR 40,000 = EUR 100/month benefit in kind. Combustion: 1% of EUR 35,000 = EUR 350/month benefit in kind.
At a marginal tax rate of 42%: EV: EUR 100 × 42% = EUR 42 tax burden/month. Combustion: EUR 350 × 42% = EUR 147 tax burden/month. Monthly savings: EUR 105. Annual savings: EUR 1,260. Over 5 years of company car use: EUR 6,300.
Additionally, the commuting allowance applies. Here, too, only a quarter applies for EVs: 0.0075% per kilometer (instead of 0.03% for combustion engines). At 20 km one-way distance: EV (EUR 40,000) EUR 60/month instead of EUR 210/month for combustion (EUR 35,000). The difference in the taxable benefit with long commutes can exceed EUR 250 monthly.
Requirements and Limits
The rule applies to purely electric vehicles and fuel cell vehicles. Plug-in hybrids only benefit at 0.5%, and only with at least 80 km electric range or at most 50 g CO₂/km. The gross list price must not exceed EUR 100,000 for the 0.25% rate (acquisition after June 30, 2025). The rule applies to vehicles acquired by the end of 2030.
Also Attractive for Employers
For employers, the EV as a company car is also interesting: leasing rates have dropped, operating costs are lower, and total cost of ownership can be cheaper than combustion. Additionally, the employer can provide charging electricity tax-free, which is attractive as an additional benefit.
Conclusion: Company Car Users Benefit Most
For company car users, the calculation in 2026 is clear: The EV as a company car saves thousands of euros in taxes over the ownership period. Combined with lower operating costs and road tax exemption, it is the economically best choice for most employees. Use our TCO calculator to calculate your personal savings.