How is vehicle tax calculated in Germany?

Since September 2018, German vehicle tax (Kfz-Steuer) for passenger cars 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. 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 €4.50 per g/km. Older vehicles (registered before September 2018) 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 pays about €78 per year. A comparable diesel with 1,600 cc and 110 g/km costs around €184. Electric vehicles registered before 2026 are completely tax-free until the end of 2030. Use our calculator above to determine the exact amount for your vehicle.

Are electric cars really tax-free?

Yes, pure battery electric vehicles (BEVs) with first registration up to and including December 31, 2025 are exempt from vehicle tax until December 31, 2030. This exemption does not apply to plug-in hybrids, as they have a combustion engine. After the exemption expires, weight-based taxation is planned. For EVs registered from 2026 onwards, the tax exemption no longer applies and a new calculation model is expected.

What changes in vehicle tax in 2026?

The most significant change in 2026 concerns electric vehicles: only EVs registered by the end of 2025 will continue to enjoy the tax exemption until 2030. Electric vehicles registered from 2026 will likely be subject to weight-based taxation. 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 registered from September 2018. 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 €2.50/g, 136–155 g/km at €3.00/g, 156–175 g/km at €3.50/g, 176–195 g/km at €4.00/g, and €4.50/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 €85 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. Vehicles registered before September 2018 continue to be taxed based on their emission standard rather than CO₂.

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 registered before 2026 eliminates the tax entirely (until 2030). 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 over €350. 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.

Vehicle Tax in Germany 2026: Calculation, Tables & EV Benefits | Vehicle Tax Calculator

Vehicle Tax in Germany: Calculation Basics

The German vehicle tax (Kraftfahrzeugsteuer or Kfz-Steuer) is an annual levy that every vehicle owner in Germany must pay. Following the fundamental reform in 2009 and subsequent adjustment in 2021, the calculation for passenger cars is based on two pillars: engine displacement and CO2 emissions measured under the WLTP procedure. The purpose of this dual taxation is clear: vehicles with high emissions should bear a greater tax burden, while low-emission and electric vehicles receive preferential tax treatment.

The vehicle tax is collected by the Main Customs Office (Hauptzollamt) and is due regardless of whether the vehicle is actually driven. What matters is the registration. Owners who temporarily deregister their vehicle (seasonal plates or formal deregistration) only pay for the months of active registration. Payment is typically via SEPA direct debit, with semi-annual or quarterly payments available for an additional fee.

Displacement-Based Taxation: The First Component

The displacement component of vehicle tax depends on the engine type. For petrol vehicles (including natural gas and hydrogen), the rate is 2.00 euros per started 100 cubic centimeters of displacement. For diesel vehicles, the rate is significantly higher at 9.50 euros per started 100 cc. This disparity has historical reasons: diesel fuel is taxed at a lower rate at the pump (energy tax), so the higher vehicle tax serves as compensation.

Calculation Example: Displacement Component

A petrol engine with 1,498 cc displacement is rounded up to 1,500 cc (15 started 100-unit blocks). The displacement component is: 15 x 2.00 euros = 30.00 euros per year. A diesel with 1,968 cc rounds up to 2,000 cc (20 blocks). The displacement component is: 20 x 9.50 euros = 190.00 euros per year. For the displacement component alone, the diesel pays more than six times as much.

CO2-Based Taxation: The Progressive Brackets in Detail

Since the 2021 reform, all passenger cars with first registration from January 1, 2021 are subject to a progressive CO2 bracket model. Vehicles registered between September 2018 and December 2020 are also subject to CO2-based taxation, but with a linear rate of 2.00 euros per gram above the 95 g/km threshold.

The Six CO2 Brackets (from 2021 Registration)

The first 95 g/km of CO2 emissions are tax-free -- this threshold applies to all passenger cars. Above that, costs increase progressively: For the range of 96 to 115 g/km, the rate is 2.00 euros per gram. From 116 to 135 g/km, the rate rises to 2.50 euros per gram. Between 136 and 155 g/km, each gram costs 3.00 euros. In the bracket from 156 to 175 g/km, the rate is 3.50 euros per gram. From 176 to 195 g/km, the charge is 4.00 euros per gram. Above 195 g/km, the maximum rate of 4.50 euros per gram applies.

Calculation Example: Car with 150 g/km CO2

A vehicle with 150 g/km CO2 emissions (WLTP) registered in 2024 is taxed as follows: The first 95 g/km are free. Bracket 1 (96-115 g/km): 20 grams x 2.00 euros = 40.00 euros. Bracket 2 (116-135 g/km): 20 grams x 2.50 euros = 50.00 euros. Bracket 3 (136-150 g/km): 15 grams x 3.00 euros = 45.00 euros. Total CO2 component: 135.00 euros per year. Add the displacement component -- for a petrol engine with 1,500 cc, that would be 30.00 euros. The total tax is therefore 165.00 euros annually.

Electric Vehicles and the Tax Exemption

Pure battery electric vehicles (BEVs) enjoy special tax treatment. All EVs with first registration up to and including December 31, 2025 are completely exempt from vehicle tax until December 31, 2030. This exemption applies exclusively to purely battery-powered vehicles -- plug-in hybrids are excluded, as they have a combustion engine.

After the exemption expires, weight-based taxation for electric vehicles is planned. The exact rates have not yet been determined, but it is expected that heavier EVs (particularly large SUVs and sedans) will face higher rates than lighter models. For EVs registered from January 1, 2026, the exemption does not apply, and the new model will likely take effect immediately.

Motorhomes: Taxation by Weight and Emission Class

Motorhomes are subject to their own calculation model. Instead of displacement and CO2, they are taxed based on gross vehicle weight and emission standard. The rates per started 200 kilograms are: Euro 4 or better: 16 euros per 200 kg. Euro 3: 24 euros. Euro 2: 32 euros. Euro 1 or worse: 40 euros per 200 kg.

An annual cap applies: motorhomes with Euro 4 or better pay a maximum of 800 euros per year, while older emission classes are capped at 1,000 euros. A motorhome with 3,500 kg gross weight and Euro 4 would therefore pay: 18 units (3,500 / 200 rounded up) x 16 euros = 288 euros per year.

Motorcycles and Light Vehicles

Motorcycles are taxed solely on displacement. The rate is 1.84 euros per started 25 cc. A motorcycle with 650 cc displacement incurs 26 units x 1.84 euros = 47.84 euros per year. CO2 emissions play no role in motorcycle taxation.

Light motor vehicles with power up to 11 kW (e.g., mopeds, small quads up to 50 cc) are exempt from vehicle tax. This exemption applies regardless of the type of propulsion.

Tips for Tax Optimization When Buying a Vehicle

1. CO2 Value as a Buying Criterion

When purchasing a new car, pay close attention to the WLTP CO2 value. Even a few grams difference can noticeably change the annual tax -- especially in the higher progressive brackets. A vehicle with 155 g/km instead of 160 g/km saves several euros per gram just by staying in a lower bracket.

2. Electric as a Tax-Free Alternative

For those who can use an EV, the complete tax exemption until 2030 offers substantial savings. Compared to a combustion vehicle paying 200 euros annually, that is 1,000 euros saved over five years on vehicle tax alone -- on top of typically lower energy costs.

3. Diesel Only for High-Mileage Drivers

Due to the significantly higher displacement rate, a diesel only makes financial sense with high annual mileage where the lower fuel consumption compensates for the tax disadvantage. Rule of thumb: below 15,000 km per year, a petrol or hybrid vehicle is usually cheaper overall.

4. Motorhome: Watch the Weight

For motorhomes, gross vehicle weight determines the tax. A lighter model or an up-rating can significantly affect the tax burden. It pays to consider weight already when choosing the vehicle.

5. Use Our Calculator

Use our vehicle tax calculator to compare taxes for different vehicle configurations. Comparing up to three vehicles simultaneously makes the differences immediately visible and supports informed purchasing decisions.