Company Car Tax Calculator 2026
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.
As of September 2026Basis: § 6 (1) No. 4, § 8 (2) EStGCalculated in your browser – your inputs are not transmitted and are kept on this device only if you choose
Domestic list price at first registration incl. extras and VAT
Drive type
More detailsCo-payment €0/month · income €60,000
For wage tax and social insurance as on the payslip
Gross per month if you give up salary for the company car
Logbook and private car comparedPrivate car not specified · logbook not specified
Your own estimate: instalment or depreciation, insurance, tax, fuel, maintenance
According to a proper logbook (Section 8(2) sentence 4 EStG)
For electric cars it counts at a quarter, for eligible plug-in hybrids at half (Section 6(1) no. 4 sentence 3 EStG). Your employer knows the costs.
Fuel or electricity, insurance, vehicle tax, maintenance – from your employer
Your effective cost per month
€5,198.16 per year
€433.18
€433.18The benefit in kind of €875.00 per month (1% rule) costs you about €249.84 in taxes plus social contributions.
- Private use (1% rule)
- €500.00
- Trips home–work0.03% flat rate
- + €375.00
- Benefit in kind per month
- €875.00
- Taxable
- €875.00
- Extra wage tax, solidarity surcharge, church tax (marginal rate 38.58%)Payslip with and without the benefit in kind compared
- €249.84
- Extra social insurance (health, care, pension, unemployment)
- €183.34
- Your effective cost per month
- €433.18
Notes on the calculation
Combustion engine: full 1% rule
0.03% flat-rate method
RZ-26 · headon.pro
The same car with another drive
Effective cost per month at a list price of €50,000. Tap a drive type to calculate with it.
How this was calculated
- Benefit in kind (year)
- €10,500.00
- Taxable (year)
- €10,500.00
- Extra taxes (year)
- €2,998.08
- Extra social insurance (year)
- €2,200.08
- Effective cost (year)
- €5,198.16
- 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
Basis: § 6 (1) No. 4 and § 8 (2) EStG (1%, 0.5% and 0.25% rule, 0.03% flat rate or 0.002% individual valuation), tax scale § 32a EStG.
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% with CO2 ≤ 50 g/km or at least 80 km electric range
How the benefit in kind is calculated
Factors that affect the benefit in kind
- 1Gross list priceThe decisive figure is the list price at first registration, incl. optional extras
- 2Drive typeEVs and plug-in hybrids receive significant tax advantages
- 3Home-to-work distanceThe further the commute, the higher the additional benefit in kind
- 4Number of tripsWith fewer than 15 trips per month, individual assessment may be cheaper
- 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
- 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
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
What is the 1% rule for company cars?
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.
What benefits do EVs have as company cars in 2026?
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% if CO2 emissions are no more than 50 g/km or the minimum electric range reaches 80 km (§ 6 (1) no. 4 sentence 2 no. 5 EStG).
What is the 0.03% rule?
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.
When is individual assessment worthwhile?
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.
Can I reduce the benefit in kind?
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.
How do I calculate the benefit in kind for a company car?
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%.
Is a company car or a pay rise more worthwhile?
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.
Does the 1% rule also apply to used cars?
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.