The CO2 Bracket Model: Why Progressive?
Since January 1, 2021, all newly registered passenger cars in Germany are subject to a progressive CO2 bracket model for vehicle tax. The goal: vehicles with particularly high CO2 emissions should be disproportionately burdened to create an incentive for purchasing low-emission vehicles. Unlike the old linear model (2018-2020), the cost per gram of CO2 increases with rising emissions.
The Six Brackets at a Glance
As a baseline, the first 95 g/km of CO2 emissions are tax-free. This threshold is granted to every passenger car, regardless of drivetrain or engine size. Above the threshold, costs are staggered in six brackets: Bracket 1 (96-115 g/km): 2.00 euros per g/km, yielding a maximum of 40.00 euros. Bracket 2 (116-135 g/km): 2.50 euros per g/km, maximum 50.00 euros. Bracket 3 (136-155 g/km): 3.00 euros per g/km, maximum 60.00 euros. Bracket 4 (156-175 g/km): 3.50 euros per g/km, maximum 70.00 euros. Bracket 5 (176-195 g/km): 4.00 euros per g/km, maximum 80.00 euros. Bracket 6 (196+ g/km): 4.50 euros per g/km, with no upper limit.
Calculation Examples for Different CO2 Values
The progression becomes particularly noticeable at higher values. A vehicle with 100 g/km pays only: 5 g x 2.00 euros = 10.00 euros in CO2 tax. A vehicle with 150 g/km pays: 20 g x 2.00 + 20 g x 2.50 + 15 g x 3.00 = 40 + 50 + 45 = 135.00 euros. A vehicle with 200 g/km pays: 20 g x 2.00 + 20 g x 2.50 + 20 g x 3.00 + 20 g x 3.50 + 20 g x 4.00 + 5 g x 4.50 = 40 + 50 + 60 + 70 + 80 + 22.50 = 322.50 euros. Doubling the CO2 output from 100 to 200 g/km results in a more than thirty-fold increase in CO2 tax -- from 10 to 322.50 euros.
WLTP: The Measurement Procedure Behind the CO2 Value
WLTP stands for Worldwide Harmonized Light Vehicles Test Procedure and has been the mandatory measurement method for CO2 emissions of new cars in the EU since September 1, 2018. It replaces the old NEDC (New European Driving Cycle), which was considered unrealistic.
Differences Between WLTP and NEDC
The WLTP test is significantly more stringent than the NEDC: test duration is 30 minutes instead of 20, the distance driven is 23.25 km instead of 11 km. The average speed is higher (46.5 km/h vs. 34 km/h), and the maximum speed increases from 120 to 131 km/h. Additionally, the vehicle's optional equipment is taken into account, which was not the case with NEDC.
In practice, WLTP values are typically 10 to 25 percent higher than the old NEDC values for the same vehicle. A car that emitted 120 g/km CO2 under NEDC often measures 135-150 g/km under WLTP. This directly affects vehicle tax, especially in the higher progressive brackets.
Why Newer Models May Have Higher CO2 Values
Many buyers are surprised that the successor to their current vehicle has a higher CO2 value on paper, despite being more technologically advanced. The reason almost always lies in the switch from NEDC to WLTP measurement. The actual fuel consumption and real emissions of newer models have generally decreased -- only the measurement method has become more realistic.
Strategic Vehicle Purchase with CO2 Brackets in Mind
Those who keep the CO2 brackets in mind when purchasing a vehicle can save considerably. It is particularly worthwhile to stay just below a bracket boundary. A car with 115 g/km (upper limit of Bracket 1) pays significantly less CO2 tax than one with 120 g/km (Bracket 2). When configuring a new car, check whether a different engine variant, smaller wheels, or a lighter equipment package can push the CO2 value below the next bracket boundary.