Tax Exemption for Electric Cars: The Rules at a Glance
The German government promotes electric mobility through, among other measures, a complete exemption from vehicle tax. This provision is designed to make the switch to zero-emission propulsion more attractive and to boost electric vehicle sales. However, the exemption is not unlimited and does not apply to every vehicle with a plug.
Which Vehicles Qualify?
The tax exemption applies exclusively to pure battery electric vehicles (BEVs). This means the vehicle must not have a combustion engine, not even as a range extender. Plug-in hybrids (PHEVs) are explicitly excluded – although they have a battery and can drive partially on electric power, they possess a combustion engine and are therefore subject to regular vehicle tax based on displacement and CO₂.
Hydrogen fuel cell vehicles fall under the exemption, provided they are purely electrically driven and have no combustion engine.
The Deadline: First Registration by December 31, 2030
The critical date is December 31, 2030. The Eighth Vehicle Tax Amendment Act (in force since late December 2025) extended the deadline by five years: only electric vehicles with first registration up to this date qualify for the tax exemption. The exemption then applies for a maximum of ten years from first registration, but no later than December 31, 2035. In practice, this means: an EV registered on March 1, 2023 is exempt until the end of February 2033. An EV first registered in June 2028 would theoretically be exempt until May 2038 – but since the maximum end date is the end of 2035, the exemption expires on December 31, 2035.
For electric vehicles with first registration from January 1, 2031, the tax exemption does not apply under current law. These vehicles are taxed by weight from day one.
What Happens After the Exemption Ends?
After the tax exemption expires, electric vehicles are taxed by weight (section 9(1) no. 3 and 9(2) KraftStG). Since EVs have no displacement and no tailpipe CO₂ emissions, the existing calculation model cannot be applied. The weight-based tax is intended to account for the fact that heavy electric vehicles – such as large SUVs with battery weights of 500 kg or more – cause greater road wear.
The rates are already in the law: per started 200 kg of gross vehicle weight 11.25 euros up to 2,000 kg, 12.02 euros up to 3,000 kg and 12.78 euros up to 3,500 kg, reduced by 50 percent for pure EVs. An EV weighing 1,800 kg pays around 51 euros, one weighing 2,400 kg around 68 euros a year. For most electric vehicles the tax is therefore lower than for comparable combustion vehicles.
Financial Impact of the Exemption
How much do you actually save? That depends on the comparison vehicle. A typical mid-range combustion car pays between 100 and 300 euros in vehicle tax per year. An electric vehicle saves this amount entirely – over five years, that is 500 to 1,500 euros in vehicle tax alone. Add savings on energy tax (no mineral oil tax on electricity) and often lower maintenance costs.
Recommendation: Secure the Exemption Now
Anyone planning to purchase an electric car should aim for first registration by the end of 2030 at the latest to secure the tax exemption. The earlier the first registration, the more of the ten-year exemption can be used before the end-2035 cap applies. Use our vehicle tax calculator to calculate the specific savings compared to your current vehicle.