How is vehicle tax calculated in Germany?

For passenger cars first registered from 1 July 2009, German vehicle tax (Kfz-Steuer) consists of two components: a displacement component and a CO₂ component. The displacement rate is €2.00 per started 100 cc for petrol engines and €9.50 for diesel. For first registrations from 2021 the CO₂ component is progressive — the first 95 g/km are tax-free, and above that the rate increases in six brackets from €2.00 to €4.00 per g/km. First registrations from July 2009 to the end of 2020 pay a flat €2.00 per g/km. Older vehicles (registered before 1 July 2009) are taxed based on their emission standard instead.

How much is the annual vehicle tax for my car?

Annual vehicle tax depends on vehicle type, fuel, engine displacement, CO₂ emissions, and first registration date. A typical compact petrol car with 1,400 cc and 120 g/km CO₂ (registered from 2021) pays about €79 per year. A comparable diesel with 1,600 cc and 110 g/km costs around €182. Pure electric cars first registered by the end of 2030 are tax-free for ten years, at most until the end of 2035. Use our calculator above to determine the exact amount for your vehicle.

Are electric cars really tax-free?

Yes, pure battery electric vehicles (BEVs) first registered between 18 May 2011 and 31 December 2030 are exempt from vehicle tax for ten years from first registration, at most until 31 December 2035 (section 3d KraftStG, extended by the Eighth Vehicle Tax Amendment Act of December 2025). This exemption does not apply to plug-in hybrids, as they have a combustion engine. After the exemption expires, the EV is taxed by weight, with the tax reduced by 50%.

What changes in vehicle tax in 2026?

The most significant change concerns electric vehicles: since 1 January 2026 the extended exemption applies — EVs first registered by the end of 2030 are tax-free for ten years, at most until the end of 2035. Previously the exemption only covered first registrations up to the end of 2025 and ended in 2030 at the latest. For combustion vehicles with CO₂-based taxation, the calculation basis remains unchanged in 2026 — the progressive CO₂ brackets and the 95 g/km free threshold are maintained. Emission-standard-based rates for older vehicles also remain the same.

How does CO₂ emission affect vehicle tax?

The CO₂ portion of vehicle tax is progressive and applies to passenger cars first registered from 1 January 2021. The first 95 g/km are tax-free. Above that, rates increase in brackets: 96–115 g/km at €2.00/g, 116–135 g/km at €2.20/g, 136–155 g/km at €2.50/g, 156–175 g/km at €2.90/g, 176–195 g/km at €3.40/g, and €4.00/g above 195 g/km. A vehicle with 150 g/km CO₂ pays significantly more than one with 120 g/km — the difference is roughly €70 per year.

Do diesel vehicles pay more tax than petrol cars?

Yes, diesel vehicles pay a higher displacement component: €9.50 per started 100 cc compared to €2.00 for petrol engines. This surcharge compensates for the lower energy tax (mineral oil tax) on diesel fuel. However, diesels typically have lower CO₂ emissions, so the CO₂ component is smaller. For a typical mid-size car, the total tax for a diesel is still higher than for a comparable petrol vehicle, though the difference is offset at high annual mileages by better fuel economy.

How is vehicle tax calculated for motorhomes?

Motorhomes are taxed based on gross vehicle weight and emission standard. The rate per started 200 kg is: €16 for Euro 4 and better, €24 for Euro 3, €32 for Euro 2, and €40 for Euro 1 or worse. There is an annual cap of €800 for motorhomes with Euro 4 or better, and €1,000 for older emission classes. Engine displacement and CO₂ emissions are not relevant for motorhome taxation.

What is the difference between NEDC and WLTP for vehicle tax?

NEDC (New European Driving Cycle) and WLTP (Worldwide Harmonized Light Vehicles Test Procedure) are measurement procedures for CO₂ emissions. Since September 1, 2018, all new registrations use the more realistic WLTP value as the basis for vehicle tax. WLTP values are typically 10–25% higher than the old NEDC values, as the test cycle is closer to real-world driving. For vehicles registered between July 2009 and August 2018, the NEDC value in the vehicle documents still applies. Only vehicles first registered before 1 July 2009 are taxed based on their emission standard.

Can I save vehicle tax by switching vehicles?

Yes, significantly. Switching from an older diesel to a modern petrol car or an electric vehicle can reduce annual vehicle tax by several hundred euros. An EV first registered by the end of 2030 eliminates the tax for up to ten years (at most until 2035). Even among combustion vehicles, comparison pays off: a car with 100 g/km CO₂ pays only €10 in CO₂ tax, while an SUV with 200 g/km incurs around €280. Use our comparison calculator to quantify the exact savings for your situation.

Where can I find the CO₂ value of my vehicle?

You can find the official CO₂ value of your vehicle in the registration certificate Part I (Fahrzeugschein) under field V.7. For new vehicles, the WLTP value is also listed in the COC document (Certificate of Conformity) and in the manufacturer’s technical specifications. Alternatively, you can look it up at the Federal Motor Transport Authority (KBA) using the type approval number. Make sure to use the WLTP value, as it has been the basis for vehicle tax calculation since September 2018.

CO₂-Based Vehicle Tax: How the Progressive Brackets Work | Vehicle Tax Calculator

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 (first registration July 2009 to end of 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): 2.20 euros per g/km, maximum 44.00 euros. Bracket 3 (136-155 g/km): 2.50 euros per g/km, maximum 50.00 euros. Bracket 4 (156-175 g/km): 2.90 euros per g/km, maximum 58.00 euros. Bracket 5 (176-195 g/km): 3.40 euros per g/km, maximum 68.00 euros. Bracket 6 (196+ g/km): 4.00 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 × 2.00 euros = 10.00 euros in CO₂ tax. A vehicle with 150 g/km pays: 20 g × 2.00 + 20 g × 2.20 + 15 g × 2.50 = 40 + 44 + 37.50 = 121.50 euros. A vehicle with 200 g/km pays: 20 g × 2.00 + 20 g × 2.20 + 20 g × 2.50 + 20 g × 2.90 + 20 g × 3.40 + 5 g × 4.00 = 40 + 44 + 50 + 58 + 68 + 20 = 280.00 euros. Doubling the CO₂ output from 100 to 200 g/km results in a twenty-eight-fold increase in CO₂ tax – from 10 to 280 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.

CO₂-Based Vehicle Tax: How the Progressive Brackets Work

The CO₂ Bracket Model: Why Progressive?

The Six Brackets at a Glance

Calculation Examples for Different CO₂ Values

WLTP: The Measurement Procedure Behind the CO₂ Value

Differences Between WLTP and NEDC

Why Newer Models May Have Higher CO₂ Values

Strategic Vehicle Purchase with CO₂ Brackets in Mind

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