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: 13 May 2026 · Author: Checkalle
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.
- Typical savings: 1,500-3,000 EUR over the exemption period.
Compare EV Insurance - Now
Vehicle tax is gone for 10 years. What remains is insurance. Compare 300+ providers in 2 minutes.
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?
Realistic range: 1,500-3,000 EUR savings over the full exemption period. For heavy premium models, savings can be higher. For your specific model: ADAC vehicle tax tool.
| Vehicle | Displacement | CO2 | Tax/Year |
|---|---|---|---|
| VW ID.4 (BEV) | - | 0 g/km | 0 EUR Tax-exempt |
| VW Tiguan 2.0 TDI | 1968 cc | 149 g/km | ~268 EUR |
| Tesla Model 3 (BEV) | - | 0 g/km | 0 EUR Tax-exempt |
| BMW 320d | 1995 cc | 132 g/km | ~224 EUR |
| Mercedes EQS (BEV) | - | 0 g/km | 0 EUR Tax-exempt |
| Mercedes S 350d | 2925 cc | 165 g/km | ~358 EUR |
After the Exemption Ends: What Then?
Once the exemption expires (either after 10 years or on 31 December 2035, whichever comes first), reduced vehicle tax applies. §3d Abs. 2 KraftStG specifies:
"Nach Ablauf des Befreiungszeitraums wird die Steuer zu 50 % der Bemessungsgrundlage berechnet, die für andere Kraftfahrzeuge mit Fremdzündungsmotoren ohne Hubraum maßgebend ist."
English: After the exemption period ends, the tax is calculated at 50% of the rate applied to other vehicles with positive-ignition engines without displacement (in practice: by weight only).
The tax is based on the car's permissible total weight, not CO2 or engine size. For a typical BEV this works out to about 60-100 EUR per year, significantly less than a combustion car of similar size.
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)
THG-Quota: 200-300 EUR Extra
Sell your CO2 savings to oil companies through THG-quota providers. 2026 market: about 200-300 EUR per year. Tax-free for private owners. (ADAC THG-Quote 2026)
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
Various German states still subsidize home wallbox installation in 2026. North Rhine-Westphalia and Bavaria pay up to 1,000 EUR per charging point. Check your local Verbraucherzentrale.
BAFA EV Purchase Subsidy 2026 (New)
Alongside the tax exemption extension, the German federal government reactivated the purchase subsidy. BAFA E-Auto-Förderung 2026 launches mid-May 2026, with amounts based on household income:
| Annual household income | Subsidy (BEV) |
|---|---|
| Under 45,000 EUR | 6,000 EUR |
| 45,000-60,000 EUR | 4,000 EUR |
| 60,000-80,000 EUR | 3,000 EUR |
| Over 80,000 EUR | Not eligible |
With two or more children under 18, the income ceiling rises to 90,000 EUR. PHEV buyers get a flat 1,500 EUR.
Important: Amounts were announced via federal press releases on 5 May 2026. The official BAFA guideline is listed as "under coordination" as of 13 May 2026. Check the final guideline before applying.
Combined with the tax exemption: a household earning under 45,000 EUR saves about 7,500-9,000 EUR total (6,000 EUR subsidy + 1,500-3,000 EUR tax savings).
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
Frequently Asked Questions
If I register an EV in 2026, do I get the full 10 years of tax exemption?
Not quite. The theoretical 10 years would run until 2036, but the absolute cap is 31 December 2035. Your effective exemption is about 9.5 years. You lose roughly half a year but keep most of the saving.
Are plug-in hybrids really excluded from the exemption?
Yes. §3d KraftStG applies only to pure battery vehicles. PHEVs pay normal vehicle tax from day one, calculated by engine displacement and CO2. This holds even for PHEVs with high electric range.
What happens to the exemption when I buy a used EV?
The remaining exemption transfers automatically to the new owner. The first registration date matters, not your purchase date. A vehicle first registered in 2024 stays tax-free until 2034.
How much tax do I pay after the exemption ends?
Under §3d Abs. 2 KraftStG you pay 50% of the standard weight-based tax. For a typical BEV this comes to about 60-100 EUR per year, roughly half the rate of a comparable combustion car.
Are there other subsidies I can combine with the tax exemption?
Yes. BAFA purchase subsidy (3,000-6,000 EUR income-based, from May 2026), THG-Quota 200-300 EUR per year, tax-free workplace charging, regional wallbox subsidies up to 1,000 EUR. All combinable.
When can I apply for the BAFA 2026 subsidy?
As of 13 May 2026, the official guideline is still under coordination. BAFA announces applications from mid-May 2026 onwards through the Forderzentrale Deutschland (FZD). Check bafa.de for latest status.
Will the 0.25% company car rule continue after 2030?
No. The rule expires on 31 December 2030. From 1 January 2031, BEV company cars revert to the standard 1% rate, or 0.5% for vehicles that qualify under the older hybrid rule.
What does 'longest until 31 December 2035' mean for me?
It is an absolute ceiling. Even if your car was registered in 2030 and the 10 years would otherwise run until 2040, the law cuts the exemption on New Year's Eve 2035. From 1 January 2036, the 50% weight-based tax applies.
Legal Disclaimer: This content is based on §3d KraftStG, §6 EStG, BMF press release of 15 October 2025, and the BAFA EV subsidy page, as of 13 May 2026. Final subsidy amounts depend on the BAFA Förderrichtlinie expected mid-May 2026. This article provides general information and does not replace advice from a qualified tax advisor (Steuerberater).
Vehicle Tax Sorted. Insurance Next.
EV insurance premiums in Germany are often lower than for combustion cars. 2-minute comparison, English support.
More: EV insurance guide · Deutsch: e-auto steuerbefreiung 2026 · Türkçe: elektrikli araç vergi muafiyeti 2026