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.

Diesel vs. Petrol: Vehicle Tax Comparison 2026 | Vehicle Tax Calculator

Why Do Diesels Pay More Vehicle Tax?

At first glance, vehicle tax for diesel cars appears unfair: the displacement rate is 9.50 euros per started 100 cc -- nearly five times the 2.00 euros for petrol vehicles. But this surcharge has a concrete reason: the energy tax (formerly mineral oil tax) on diesel fuel in Germany is significantly lower than on petrol. Per liter, diesel drivers pay roughly 18 cents less in energy tax. The higher vehicle tax is intended to partially compensate for this advantage at the pump.

Comparing Displacement Rates

The difference becomes particularly pronounced with larger engines. A 1,500 cc petrol engine pays 30 euros in displacement tax per year. A 1,500 cc diesel pays 150 euros -- five times as much. For a 2,000 cc engine, the gap widens further: 40 euros (petrol) versus 190 euros (diesel). The displacement disadvantage for diesel vehicles is therefore substantial, amounting to 120 to 300 euros per year depending on engine size.

Diesels Often Have Lower CO2 Emissions

Diesel engines are generally more efficient than petrol engines of the same power class and emit less CO2 per kilometer. For a VW Golf, for example, the 1.5 TSI (petrol) produces approximately 130-140 g/km CO2 (WLTP), while the 2.0 TDI (diesel) achieves only 115-125 g/km despite the larger displacement. This means the CO2 component of vehicle tax is lower for diesel -- partially offsetting the displacement disadvantage.

Concrete Comparison: VW Golf 1.5 TSI vs. 2.0 TDI

Let us calculate a specific example: The VW Golf 1.5 TSI (petrol, 1,498 cc, 130 g/km CO2, first registered 2024) pays: Displacement: 15 x 2.00 euros = 30.00 euros. CO2: 20 g (96-115) x 2.00 euros + 15 g (116-130) x 2.50 euros = 40.00 + 37.50 = 77.50 euros. Total: 107.50 euros per year.

The VW Golf 2.0 TDI (diesel, 1,968 cc, 120 g/km CO2, first registered 2024) pays: Displacement: 20 x 9.50 euros = 190.00 euros. CO2: 20 g (96-115) x 2.00 euros + 5 g (116-120) x 2.50 euros = 40.00 + 12.50 = 52.50 euros. Total: 242.50 euros per year.

The diesel therefore pays 135 euros more in vehicle tax per year -- despite lower CO2 emissions.

Break-Even Analysis: At What Mileage Does Diesel Pay Off?

The higher vehicle tax for diesel is partially offset by lower fuel consumption and a cheaper pump price. In our Golf comparison, the TDI consumes approximately 4.5 l/100 km while the TSI uses around 5.8 l/100 km. With diesel at 1.55 euros per liter and petrol at 1.70 euros, the diesel has a cost advantage of roughly 2.9 cents per kilometer.

To offset the 135 euros in additional tax, the Golf TDI would need to be driven at least 4,700 km per year. Above this mileage, diesel becomes cheaper overall. With typical new car usage (12,000-15,000 km/year), the diesel saves roughly 200-300 euros annually compared to the petrol variant -- despite higher vehicle tax.

Conclusion: Diesel Only Makes Sense for High-Mileage Drivers

Vehicle tax alone clearly weighs against diesel. The significantly higher displacement rate of 9.50 euros vs. 2.00 euros creates an additional burden of 100-300 euros per year. Only at annual mileages of approximately 5,000-8,000 km (depending on the model) do the lower fuel costs compensate for these additional costs. For low-mileage drivers, city drivers, and short-distance commuters, a petrol or hybrid vehicle is almost always the better choice from a tax perspective.