Electric Car Tax Exemption Germany 2026: 10 Years Tax-Free
If you own or plan to buy a fully electric car in Germany, you pay no vehicle tax (German: Kfz-Steuer) for the first 10 years after registration. The car must be first registered by 31 December 2030. The exemption ends at the latest on 31 December 2035, even if the full 10 years would otherwise extend beyond that date.
Last updated: · CheckAlle Editorial Team
Key Takeaways
- Pure electric vehicles (BEVs) get 10 years of vehicle tax exemption. First registration must happen by 31 December 2030.
- The exemption ends no later than 31 December 2035. A car registered in 2028 gets about 7 years exemption, not the full 10.
- Plug-in hybrids (PHEVs) are NOT exempt. Common misunderstanding: PHEVs pay normal vehicle tax from day one.
- After exemption ends, weight-based tax at 50% of standard rate. Much cheaper than for combustion cars.
- You do not apply for anything. Customs grants the exemption, and the later reduced rate, automatically.
- Deregistering the car or running a seasonal plate does not extend the ten years. They run by the calendar.
- Once the exemption ends you pay the halved weight rate, roughly 50 to 86 EUR a year for a typical EV.
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Who Qualifies, Who Doesn't
The exemption under §3d of the German Vehicle Tax Act (Kraftfahrzeugsteuergesetz, KraftStG) applies only to pure battery electric vehicles (BEVs).
§3d Abs. 1 KraftStG (German original): "Die Steuerbefreiung wird bei erstmaliger Zulassung des Elektrofahrzeugs in der Zeit vom 18. Mai 2011 bis 31. Dezember 2030 für zehn Jahre ab dem Tag der erstmaligen Zulassung gewährt, längstens jedoch bis zum 31. Dezember 2035."
English: The tax exemption is granted for 10 years from the date of first registration for electric vehicles registered between 18 May 2011 and 31 December 2030, but no longer than until 31 December 2035.
Battery Electric Vehicles (BEVs)
Tesla Model 3/Y, VW ID.3/ID.4/ID.7, BMW i4, Hyundai Kona Electric, Renault Megane E-Tech. Powered solely by an electric motor and battery, no combustion engine. Full 10-year exemption.
Plug-in Hybrids (PHEVs)
BMW 330e, Mercedes A 250e, VW Passat GTE. Combine a combustion engine and electric motor, fall outside §3d. PHEV owners pay regular vehicle tax from day one, calculated by engine displacement and CO2.
The Two-Date Rule: 2030 and 2035
31 December 2030
The car must be first registered in Germany by this date to qualify for the exemption at all.
31 December 2035
Absolute end date. Regardless of when the 10 years would otherwise expire, the exemption stops on this day.
The current rules come from the Eighth Amendment to the Vehicle Tax Act (Achtes Gesetz zur Änderung des Kraftfahrzeugsteuergesetzes), approved by the German federal cabinet on 15 October 2025. The previous registration deadline of 31 December 2025 was extended by five years. (BMF press release 15.10.2025)
Concrete Examples
- First registration in 2024: Exemption runs until 2034, the full 10 years, because 2034 falls before the 2035 cap.
- First registration in 2026: Theoretical until 2036, cut off on 31 December 2035. Effective duration about 9.5 years.
- First registration in 2029: Theoretical until 2039, capped at 2035. Effective duration about 6 years.
- First registration in January 2031: No exemption. Deadline missed.
How Much Do You Actually Save?
An electric car pays nothing while the exemption runs. A comparable diesel pays a three-digit sum every year, because both displacement and CO2 feed into its bill. The figures below are calculated from section 9 Abs. 1 Nr. 2 lit. c KraftStG: 9.50 EUR per 100 cc started, plus a graded CO2 surcharge above 95 g/km. One caveat worth stating: this scale applies to cars first registered on or after 1 January 2021. Older diesels fall under lit. b and land on slightly different amounts.
| Vehicle | Displacement | CO2 | Tax/Year |
|---|---|---|---|
| Any pure electric car | no engine | 0 g/km | 0 EUR Tax-exempt |
| Diesel, 1,968 cc | 1,968 cc | 149 g/km | 309.00 EUR |
| Diesel, 1,995 cc | 1,995 cc | 132 g/km | 267.40 EUR |
| Diesel, 2,925 cc | 2,925 cc | 165 g/km | 448.00 EUR |
After the exemption: what an EV actually pays
When the exemption ends, after ten years or on 31 December 2035 at the latest, you are not taxed like a combustion car. For electric vehicles only the permissible gross weight counts, and half of that amount is charged.
Section 9 Abs. 2 KraftStG reduces the tax by 50 percent of the amount resulting from Abs. 1 Nr. 3, for vehicles driven exclusively by electric motors.Source: gesetze-im-internet.de, section 9 KraftStG
The base rates in section 9 Abs. 1 Nr. 3 are 11.25 EUR per 200 kg started up to 2,000 kg, and 12.02 EUR above that up to 3,000 kg. Halved, they produce the right-hand column. Find the row matching the permissible gross weight printed in your registration certificate.
| Permissible gross weight | Base amount | Electric car (halved) | Value of exemption, 10 years |
|---|---|---|---|
| 1,600 kg | 90.00 EUR | 45.00 EUR | 450 EUR |
| 1,800 kg | 101.25 EUR | 50.63 EUR | 506 EUR |
| 2,000 kg | 112.50 EUR | 56.25 EUR | 563 EUR |
| 2,200 kg | 124.52 EUR | 62.26 EUR | 623 EUR |
| 2,400 kg | 136.54 EUR | 68.27 EUR | 683 EUR |
| 2,600 kg | 148.56 EUR | 74.28 EUR | 743 EUR |
| 2,800 kg | 160.58 EUR | 80.29 EUR | 803 EUR |
| 3,000 kg | 172.60 EUR | 86.30 EUR | 863 EUR |
So the real value of the exemption for most electric cars sits around 500 to 860 EUR across the full ten years. The ADAC puts a BMW i3 at roughly 50 EUR a year, which lands on the same row as our 1,800 kg figure.
Do I need to apply for the exemption?
No, and this is the part most guides skip. Vehicle tax in Germany is administered by customs, not by the tax office, and customs handles the exemption without you lifting a finger. Their own wording is that both the exemption and the reduced rate that follows it are granted fully automatically, with no application required.
Registration hands customs everything it needs. Your tax assessment arrives with the exemption already applied. If a bill turns up anyway, check part I of your registration certificate first: it shows whether the car is recorded as a pure electric vehicle. Source: German customs, tax benefits for pure electric vehicles.
Deregistration and seasonal plates: the clock keeps running
People who take their car off the road over winter, or run a seasonal plate, often assume the ten years stretch accordingly. They do not. Section 3d Abs. 3 KraftStG states that periods of deregistration, and periods outside the operating window shown on a seasonal plate, have no effect on the exemption.
In practice the exemption is counted on the calendar, starting from the day of first registration. A car standing idle four months a year loses nothing by it, and gains nothing either.
Converted petrol or diesel cars can qualify too
A detail that appears in almost no guide: section 3d Abs. 4 KraftStG also covers vehicles that originally ran on petrol or diesel and were later converted to electric drive. Two conditions apply.
- The conversion took place between 18 May 2016 and 31 December 2030.
- The parts used hold a general operating permit under section 22 in conjunction with section 20 StVZO.
The exemption starts on the day the registration authority confirms those conditions, then runs for ten years. Customs states explicitly that the original first registration date does not matter here. For a small car registered in 2012 and converted in 2027, the clock starts in 2027, still capped at 31 December 2035.
Additional Tax Benefits for EV Drivers
Company Car: 0.25% Rule
Electric company cars taxed at only 0.25% of gross list price for personal use (vs. 1% for combustion). Condition: gross list price max 100,000 EUR, acquired before 1 January 2031. (§6 Abs. 1 Nr. 4 EStG)
Selling your THG quota
As the keeper of a pure electric car you can sell your CO2 saving once a year. The ADAC reports that some providers are offering over 300 EUR for 2026. Two catches: registration with the Federal Environment Agency is only possible until 15 November of the relevant compliance year, and many providers do not guarantee the advertised sum in their terms. (ADAC on the THG quota)
Free Workplace Charging
If your employer charges your EV for free at work, it's tax-free under §3 Nr. 46 EStG. Valid until 31 December 2030.
Regional Wallbox Subsidies
Some German states and municipalities subsidise a home wallbox. These programmes open and close at short notice and differ widely, so we deliberately quote no figures here. Check your state or city funding database before you buy.
The purchase subsidy: the second place to save
The tax exemption is not the only state benefit on the table. Since 19 May 2026 the federal government also subsidises the purchase itself, graded by taxable household income and by the number of qualifying children. Both figures interact, so quoting a single number here would only mislead.
The full subsidy table for battery electric cars and for plug-in hybrids, the income thresholds including the per-child allowance, and the application steps via BundID are kept on our dedicated page. We maintain those amounts in one place so they cannot go stale here.
Go to the 2026 EV purchase subsidy: amounts, thresholds, applicationTwo things worth knowing before you read on there: you apply only after the car is registered, and no later than twelve months afterwards. And the scheme closes considerably earlier for plug-in hybrids than for pure electric cars.
Used EV Purchase: Exemption Transfers With the Car
When the owner changes (Halterwechsel in German), the remaining tax exemption transfers automatically to the new owner. Example: in 2026 you buy a Tesla Model Y first registered in 2024. Your exemption runs until 31 December 2034. The full remaining time belongs to you.
The 10-year period and the 2035 cap count from the original first registration date, not from your purchase date.
German-English Glossary
Useful terms when dealing with the vehicle registration office (Zulassungsstelle), tax authorities (Finanzamt), or your tax advisor (Steuerberater):
Kfz-Steuer
Vehicle tax / motor vehicle tax
Steuerbefreiung
Tax exemption
Erstzulassung
First registration
Bemessungsgrundlage
Tax base / assessment basis
Halterwechsel
Change of vehicle owner
Bruttolistenpreis
Gross list price (including VAT)
Förderrichtlinie
Subsidy guideline
Treibhausgasminderungsquote (THG)
Greenhouse gas reduction quota
Zulassungsstelle
Vehicle registration office
Vehicle tax for electric cars in Germany: common questions
If I register an EV in 2026, do I get the full 10 years of vehicle tax exemption?
It depends on the day you register. The ten years run from the first registration date and are capped at 31 December 2035. Register in January 2026 and you get the full ten years. Register in July 2026 and you end up with roughly nine and a half. The later in the year, the smaller the remainder.
Are plug-in hybrids really excluded from the exemption?
Yes. Section 3d KraftStG covers pure battery vehicles only. German customs puts it plainly: hybrids that also have a combustion engine do not count as electric vehicles under the vehicle tax act and are not tax-privileged. High electric range makes no difference.
What happens to the exemption when I buy a used EV?
The remaining exemption passes to you. Section 3d Abs. 2 grants it once per vehicle, and whatever is left at the time of an ownership change goes to the new keeper. What counts is the original first registration date, not your purchase date.
Do I have to apply for the exemption?
No. German customs states that both the exemption and the reduced rate that follows it are granted fully automatically, with no application needed. Nothing to file, no deadline to watch. Vehicle tax in Germany is collected by customs, not by the tax office.
Does deregistering the car or using a seasonal plate extend the exemption?
No, and this catches people out. Section 3d Abs. 3 KraftStG says explicitly that periods of deregistration and periods outside a seasonal plate's operating window have no effect on the exemption. The ten years run by the calendar, even while the car sits still.
Does a converted petrol or diesel car qualify?
It can. Under section 3d Abs. 4 KraftStG the conversion must have taken place between 18 May 2016 and 31 December 2030, and the parts used need a general operating permit under section 22 in conjunction with section 20 StVZO. Customs confirms the original first registration date is irrelevant here. The exemption starts on the day the registration authority confirms the conditions are met.
How much vehicle tax does an EV pay after the exemption ends?
Half the weight-based amount from section 9 Abs. 1 Nr. 3, as set by section 9 Abs. 2. It is calculated per 200 kg of permissible gross weight or part thereof. At 1,800 kg that is 50.63 EUR a year, at 2,400 kg 68.27 EUR, at 3,000 kg 86.30 EUR. The ADAC arrives at roughly 50 EUR for a BMW i3, which matches.
How much is the exemption actually worth?
The value of the exemption equals the tax you would otherwise owe, which is the halved weight amount. Over ten years that puts most electric cars in the range of roughly 500 to 860 EUR. A comparable diesel pays considerably more, because displacement and CO2 both feed into its calculation.
Are there other subsidies I can combine with the tax exemption?
Yes. The federal purchase subsidy is graded by taxable household income and the number of qualifying children. We keep the full table and the application steps on our dedicated page about the 2026 purchase subsidy rather than repeating figures here. On top of that come the annually sellable THG quota and tax-free charging at your employer.
Will the 0.25% company car rule still apply after 2030?
This one is widely misquoted. Section 6 Abs. 1 Nr. 4 Satz 2 Nr. 3 EStG attaches to the date of acquisition, not to the year of use. A car acquired before 1 January 2031 keeps the 0.25% rate afterwards too. Only cars acquired from 2031 onwards lose it. The gross list price ceiling of 100,000 EUR applies to acquisitions from 1 July 2025 under section 52 Abs. 12 EStG.
What does 'at the longest until 31 December 2035' mean for me?
It is a hard ceiling. Even if your car was registered in 2030 and the ten years would run to 2040 on paper, the exemption ends on 31 December 2035. After that the halved weight-based rate applies.
Legal disclaimer: This page is based on the statutory texts of section 3d and section 9 KraftStG and sections 3, 6 and 52 EStG, together with the German customs guidance on vehicle tax. Every figure here is calculated from those provisions rather than estimated. Last updated: . It is general information and does not replace advice from a qualified tax advisor (Steuerberater).
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