How is an electric company car taxed in 2026?

For purely electric company cars, the 0.25% rule applies: only a quarter of one percent of the gross list price per month is taxed as a benefit in kind — instead of 1% as for a combustion car. The condition is that the gross list price doesn't exceed the applicable cap.

How high is the price cap for the 0.25% rule?

The gross-list-price cap has been raised several times: most recently to €100,000 for electric vehicles acquired after 30 June 2025. If the list price is above that, the more favourable 0.5% rule applies instead of 0.25%.

What applies to plug-in hybrids?

Plug-in hybrids only benefit from the 0.5% rule if they meet certain conditions: a minimum pure-electric range (currently 80 km) or CO2 emissions of at most 50 g/km. Pure combustion cars, by contrast, are taxed fully at 1%.

Is an electric company car worth it for tax?

In most cases yes. The 0.25% rule quarters the benefit in kind compared with a comparable combustion car. At a list price of €50,000 that means only €125 instead of €500 a month in taxable benefit — a clear net difference.

Electric Company Car 2026: 0.25% Rule & €100,000

A company car you also drive privately costs tax — but for an electric car only a quarter of it. And since 2025 these vehicles may be considerably more expensive. This guide shows how the 0.25% rule works, where the new €100,000 cap lies, and when switching pays off.

In short: Pure electric company cars are taxed under the 0.25% rule — a quarter of the usual percentage. Condition: gross list price up to €100,000 (for acquisition after 30 June 2025). Above that, 0.5% applies. Plug-in hybrids only get 0.5% with a minimum range (80 km) or ≤ 50 g CO2. Combustion cars: full 1%.

The 1% rule as a starting point

If you also use a company car privately, that’s a benefit in kind you must tax. For a combustion car the 1% rule applies: 1% of the gross list price per month is taxed as additional wages. On top, for trips to work, 0.03% per distance kilometre monthly. How that works in detail is in Company car tax compared.

The 0.25% rule for electric cars

For purely electric company cars, the benefit in kind is quartered: instead of 1%, 0.25% of the gross list price applies. The surcharge for trips to work is reduced accordingly.

Condition: the gross list price must not exceed the applicable cap. This has been raised several times — most recently to €100,000 for vehicles acquired after 30 June 2025. So high-value electric models now also fall under the most favourable rule.

What applies above the cap and for hybrids

Electric car over €100,000 list price: instead of 0.25%, the 0.5% rule applies (still half a combustion car).
Plug-in hybrids: 0.5% only if they have a pure-electric range of at least 80 km or emit at most 50 g CO2/km. Otherwise full 1%.
Pure combustion cars: always 1%.

Worked example

Ms Lang gets an electric company car with a gross list price of €50,000.

Rule	Monthly benefit	At 40% tax rate
Combustion (1%)	€500	~€200/month tax
Electric (0.25%)	€125	~€50/month tax

On private use alone, Ms Lang saves about €150 tax a month — roughly €1,800 a year. On top comes the likewise reduced taxation of trips to work.

For the self-employed: also the special depreciation

If you buy an electric company car for your business as a self-employed person, the new special depreciation for electric vehicles may also apply, allowing a particularly high depreciation amount in the year of acquisition. More on declining-balance depreciation in Investment booster & declining depreciation.

Common mistakes

Overlooking the list-price cap. Above €100,000, 0.5% applies instead of 0.25%.
Confusing a hybrid with a pure electric car. Hybrids only get 0.5%, and only with conditions.
Forgetting trips to work. This surcharge is also reduced for the electric car.
Using the wrong gross list price. The list price at first registration counts, not the purchase price.

How Restio helps

Which rule applies to your vehicle and what it means net depends on the list price and drive type. Restio works it out for you:

Determine the rule — enter the list price and drive, and Restio tells you whether 0.25%, 0.5% or 1% applies.
Estimate the benefit — Restio shows the monthly benefit in kind and the approximate tax.
Instant answers — ask in English or German: “How much do I save with an electric company car?” or “Does my model fall under the €100,000 cap?”

For integration into payroll, your employer is responsible; for business vehicles, your tax advisor — Restio makes the comparison transparent in advance.

The electric company car is more tax-attractive than ever in 2026: a quarter of the benefit and a cap raised to €100,000. Those who know the list price and drive type immediately know which rule applies — and how much remains net. The details are explained by the Federal Ministry of Finance.