Current for 2026•As of: July 2026

Company Car Tax Calculator 2026 Calculate the benefit in kind.

Calculate the 1% rule and the benefit in kind – EV 0.25% up to €100,000, compare net extra cost vs. a pay rise directly.

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10,000 EUR200,000 EUR
0 km km100 km km
0 EUR1,000 EUR
20,000 EUR200,000 EUR

EV benefits 2026:

  • EV: 0.25% up to €100,000 (acquired from 07/2025; before: €60,000/€70,000)
  • EV over €100,000: only 0.5%
  • Plug-in hybrid: 0.5% with CO2 ≤ 50 g/km or ≥ 80 km range
  • Individual assessment is worthwhile with fewer trips

Effective monthly cost

€353.42

€4,241.00 per year

Combustion engine

1% rule

Combustion engine: full 1% rule | 0.03% flat-rate method

Benefit in kind (monthly)

Private use (1% rule)€500.00
Home-to-work trips€375.00
Total benefit in kind€875.00
Taxable€875.00

Tax effect — estimated extra burden (excl. social security)

Marginal tax rate38.58%
Estimated extra burden/month (excl. social security)+€353.42
Estimated extra burden/year (excl. social security)+€4,241.00

Your costs (monthly)

Co-payment€0.00
Estimated extra burden (excl. social security)€353.42
Effective cost€353.42
Benefit in kind (year)€10,500.00
Co-payment (year)-€0.00
Taxable (year)€10,500.00
Extra burden (year, excl. social security)+€4,241.00
= Effective cost (year)€4,241.00

Important note

These calculations are for non-binding information only and do not replace professional tax advice. All information without guarantee. Learn more

Sources & calculation basis

Our calculations are based on the following official sources (as of: July 2026):

Related guides

Salary Optimization

The 1% rule for company cars

The 1% rule (§6 (1) no. 4 EStG) is the most common method for calculating the benefit in kind of a privately used company car. Each month, 1% of the domestic gross list price at the time of first registration is taxed as a benefit in kind.

EV benefits 2026

Up to €100,000 list price
Only 0.25% instead of 1% - the maximum incentive for EVs (since 1 July 2025)
Over €100,000 list price
Only 0.5% instead of 1% - still a considerable saving
Plug-in hybrids
0.5% only with at least 80 km of electric range

How the benefit in kind is calculated

Example: EV with €55,000 gross list price, 20 km commute

Example: EV with €55,000 gross list price, 20 km commute
ItemAmount
Gross list price€55,000.00
1% rule (0.25% for EV)€137.00
Home-to-work trips (0.03% × 0.25 × 20 km)+ €82.20
Benefit in kind per month€219.20

For comparison: combustion engine with the same list price

For comparison: combustion engine with the same list price
ItemAmount
Gross list price€55,000.00
1% rule (full)€550.00
Home-to-work trips (0.03% × 20 km)+ €330.00
Benefit in kind per month€880.00

Factors that affect the benefit in kind

  1. Gross list price: The decisive figure is the list price at first registration, incl. optional extras
  2. Drive type: EVs and plug-in hybrids receive significant tax advantages
  3. Home-to-work distance: The further the commute, the higher the additional benefit in kind
  4. Number of trips: With fewer than 15 trips per month, individual assessment may be cheaper

Optimisation tips

How to reduce your tax burden

Choose an EV
Up to 75% less benefit in kind thanks to the 0.25% rule
Check individual assessment
Often cheaper than the 0.03% flat rate for home office or part-time
Agree a co-payment
A monthly co-payment directly reduces the benefit in kind
Mind the gross list price
Fewer optional extras = a lower benefit in kind

Frequently asked questions about company cars

Key facts on the 1% rule and EV benefits

The 1% rule is a flat-rate method for calculating the benefit in kind for the private use of a company car. Each month, 1% of the gross list price is taxed as a benefit in kind. For EVs, reduced rates of 0.25% or 0.5% apply.

EVs benefit from reduced tax rates: for a gross list price up to €100,000, the 0.25% rule applies (since 1 July 2025). Only above that does the 0.5% rule apply. Plug-in hybrids receive 0.5% only with at least 80 km of electric range.

The 0.03% rule is a surcharge on the benefit in kind for trips between home and the workplace. Each month, 0.03% of the gross list price per distance kilometre is taxed. With fewer than 15 trips per month, the cheaper individual assessment can be chosen.

Individual assessment is worthwhile with fewer than 15 trips per month to the workplace, e.g. with part-time work or frequent home office. Per trip, 0.002% of the gross list price per kilometre is applied, up to a maximum of 180 trips per year.

Yes, a monthly co-payment to the employer reduces the benefit in kind. Choosing a cheaper vehicle or an EV also significantly reduces the taxable amount.

Benefit in kind = 1% of the gross list price per month + 0.03% × gross list price × distance kilometres to work per month. Example: €40,000 list price, 30 km commute = €400 (1%) + €360 (0.03% × 40,000 × 30) = €760 benefit in kind per month. For EVs up to €100,000, 0.25% applies instead of 1%.

That depends on the list price, your tax rate and your actual driving costs. As a rule of thumb: a company car is worthwhile if your employer covers fuel and maintenance and the benefit in kind is lower than your previous car costs. Our calculator shows the monthly net advantage or disadvantage of the company car directly.

Yes, the 1% rule refers to the gross list price at the time of first registration – not the purchase price. Even for a used company car bought for, say, €25,000 but with a new-car list price of €55,000, 1% of €55,000 (= €550) is applied as the benefit in kind.
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