What exactly is the Bruttolistenpreis (gross list price)?

It's the manufacturer's domestic list price at the time of first registration — including all optional extras and VAT. Not the actual purchase price or lease rate. Even for used cars, the original list price at first registration applies.

Does the 0.25% rule apply to used electric cars?

Yes. The 0.25% rule depends on the list price at first registration, not when you got the car. A used EV with an original list price under €100,000 still qualifies for the 0.25% rule.

What are the rules for plug-in hybrids?

Plug-in hybrids get the 0.5% rule (instead of 1%) if they have at least 60 km of pure electric range and emit no more than 50 g CO2/km. Otherwise, the standard 1% rule applies as for combustion vehicles.

Can I combine the company car benefit with the Pendlerpauschale?

No. If you use the 0.03% rule for your commute, you cannot also claim the commuter allowance (Pendlerpauschale) for the same distance. However, you can choose the commuter allowance instead if it's more favourable — in that case, the 0.03% surcharge is not applied.

What happens if I change cars during the year?

The months are calculated proportionally. For each month, the respective list price and rule (0.25%/0.5%/1%) apply. If you switch from a combustion car to an EV in July, you pay 6 months at the 1% rule and 6 months at the 0.25% rule.

Company Car Tax Germany 2026: EV vs. Combustion Compared

Company Car Taxation in Germany: The Hidden Cost

You’ve been offered a company car (Dienstwagen) — great news! Until you see your first payslip and wonder where your salary went. In Germany, using a company car for private purposes creates a taxable benefit in kind (geldwerter Vorteil), and most employees have no idea how much tax they’re actually paying — or that switching to an electric car could save them over €2,000 per year.

In short: Company cars are taxed using the 1% rule (combustion), 0.5% rule (PHEV/EV above €100,000), or 0.25% rule (EV up to €100,000). Plus a 0.03% commute surcharge per km. With a €50,000 list price and 25 km commute, an EV saves roughly €1,575 in taxes per year compared to a combustion car.

How Company Car Taxation Works

If you’re allowed to use your company car privately, you must pay tax on the benefit in kind. The most common method is the 1% rule:

The 1% Rule (Combustion Engines)

Each month, 1% of the gross list price (Bruttolistenpreis) is added to your taxable income.

Example: Company car with €50,000 list price

Monthly benefit in kind: €50,000 × 1% = €500/month
Annually: €6,000 added to your taxable income

The 0.25% Rule (EVs Up to €100,000)

Since July 2025, pure electric vehicles with a list price up to €100,000 qualify for the drastically reduced 0.25% rule.

Example: EV with €50,000 list price

Monthly benefit: €50,000 × 0.25% = €125/month
Annually: €1,500 instead of €6,000

The 0.03% Commute Surcharge

On top of the private use benefit, your commute is also taxed: 0.03% of the list price × one-way distance in km per month. This applies equally to all vehicle types.

Example: €50,000 list price, 25 km one-way commute

Surcharge: €50,000 × 0.03% × 25 = €375/month

Full Comparison: EV vs. Combustion

Assumptions: €50,000 list price, 25 km commute, 35% marginal tax rate

Combustion Engine (1% Rule)

Item	Per Month
Private use (1%)	€500
Commute (0.03% × 25 km)	€375
Total benefit in kind	€875
Tax (35%)	€306.25
Tax per year	€3,675

Electric Vehicle (0.25% Rule)

Item	Per Month
Private use (0.25%)	€125
Commute (0.03% × 25 km)	€375
Total benefit in kind	€500
Tax (35%)	€175
Tax per year	€2,100

Total EV Savings

Advantage	Per Year
Tax advantage	€1,575
Vehicle tax exemption (until 2030)	~€300
THG quota (EV only)	~€300
Total savings	~€2,175

Calculate Automatically

Comparing different list prices, commute distances, and tax brackets gets complicated fast. Use our free Company Car Calculator and compare EV vs. combustion in seconds.

Legal Basis

Company car taxation is regulated in § 6 Abs. 1 Nr. 4 EStG. The EV special rules apply at least until the end of 2030.

The €100,000 Threshold (Since July 2025)

Previously, the 0.25% rule only applied to EVs up to €70,000. Since July 2025, the threshold was raised to €100,000 — making premium EVs like the Tesla Model S or BMW iX significantly more attractive as company cars.

Vehicle Tax and THG Quota

Pure EVs are exempt from vehicle tax (KFZ-Steuer) until end of 2030 (combustion cars: ~€200-400/year). Additionally, EV owners can sell their THG quota (greenhouse gas reduction quota) for approximately €250-330/year.

Common Mistakes to Avoid

Confusing list price with purchase price — Always use the manufacturer’s list price at first registration including extras, not the actual price paid or lease rate.
Forgetting the commute surcharge — The 0.03% per kilometre adds up quickly for long commutes and applies on top of the 1%/0.25%/0.5%.
Double-claiming Pendlerpauschale — If you pay the 0.03% surcharge, you cannot also claim the commuter allowance for the same commute.
Ignoring the Fahrtenbuch option — The 1% rule is convenient, but keeping a logbook can be cheaper if you use the car mostly for business.

How Restio Helps

Company car taxation is complex and changes regularly. Restio helps you stay on top:

Threshold monitoring — the Financial Guardian tracks whether the €100,000 limit applies to your vehicle
Deduction optimisation — Restio checks whether the commuter allowance or the 0.03% rule is better for your situation
AI tax expert — ask anytime about current company car rules and get your individual tax burden calculated

Try Restio free for 14 days and optimise your company car taxation.

Conclusion

An electric company car with a €50,000 list price saves around €2,175 per year compared to a combustion engine. Since July 2025, the 0.25% rule applies up to €100,000 — making even premium EVs attractive as company cars. Run the numbers for your specific case — the differences are often larger than you’d expect.