No fuel consumption, no harmful emissions, but environmental bonus, subsidies and convenient charging options: Electric cars can already score with many advantages today. One of them: tax incentives. Whether for private use or as a company car – in addition to the purchase premium, the German government is promoting electric vehicles with tax savings up to and including tax exemption in order to promote electromobility in Germany and the use of alternative energy sources. We have unpacked the tax gift in this guide for you.
Exempt from tax for years.
Electric cars enjoy tax advantages. Strictly speaking, they are not exempt from taxation. But there is a tax-free period for e-cars, during which you do not have to pay tax as an owner. You could say: a temporary tax exemption. This is the first gift that drivers of an electric vehicle will be happy to receive. How large it turns out is regulated by the Motor Vehicle Tax Act and depends on the registration date.
The tax-free gift – in L or XL.
To promote electromobility, the state has increased its gift from size L to XL. If vehicles with first registration before 17. May 2011 exempt from vehicle tax for electric cars for five years, owners must pay a tax for electric cars registered after 18. May 2011 were registered or will be registered, 10 years no motor vehicle tax to pay. The XL gift is available to anyone who has purchased an e-vehicle by 31 December. December 2020 allows. The scheme is still valid for this long.
Tax rate for electric cars? Also a present!
In addition to the tax exemption of currently 10 years, we receive another gift from the state in terms of electric cars: as tax advantages over conventional cars such as gasoline or diesel, in the form of a “discount”. Even after the tax-free period has expired, drivers are still on the road more cheaply thanks to the electric car tax. They pay only 50 percent of the standard rate of vehicle tax.
Calculate electric car tax: Weight is the deciding factor.
If you want to know how big this second tax giveaway is in concrete terms, you have to look up how heavy your e-car is. How inexpensive the reduced motor vehicle tax turns out to be depends solely on the weight of the electric vehicle. The permissible total weight is decisive. The permissible gross weight is the maximum weight that a car, including people and all other cargo, may weigh. You can find it in the vehicle registration document (“Zulassungsbescheinigung Teil 1”) under item F.1.
Electric car tax under 3.500 kilogram.
If you drive an electric car, you get one half of the tax for conventional commercial vehicles for free. You only have to pay the other half. The annual motor vehicle tax increases with each additional 200 kilograms of weight. The sum is rounded off in each case.
It should also be noted: The rates are staggered. That is, for the first 2.000 kilograms, the tax rate is 5.625 euros per 200 kilograms, and for the additional kilograms between 2.000 and 3.000 kilograms per 200 kilograms 6.01 euros, from 3.000 to 3.500 kilograms for every additional 200 kilograms 6.39 euros each.
For every 200 kilograms, there’s a gift of around six euros.
Example calculation for an electric vehicle with 3.000 kilograms.
As an example, let’s calculate the tax for an electric car that has a maximum permissible gross weight of 3.000 kilograms. Since the tax rate adds up per 200 kilograms and is also staggered, we first divide the total weight accordingly:
2.000 : 200 = 10 units for the first 2.000 kilograms.
1.000 : 200 = 5 units for the additional kilograms of 2.000 to 3.000 kilograms.
Multiplied by the respective scale tax rates results:
10 x 5.625 = 56.25 euros, rounded 56 euros.
5 x 6,01 = 30,05 Euro, rounded 30 Euro.
This makes a total of 86 euros in vehicle tax per year – and at the same time a tax advantage of 86 euros per year compared to a combustion engine.
Electric car: tax for cars over 3.500 kilograms.
For electric cars with a maximum permissible gross weight over 3.500 kilograms, the same applies as for electric cars that weigh less: Take the respective tax rates for commercial vehicles as a basis and divide them by two. Because no matter how heavy a Stromer is: the taxes are always only half as high as for conventional commercial vehicles. Because e-cars are emission-free, the comparison is based on the most favorable emission class.
Electric charging station for your home.
Convert and benefit.
You have an internal combustion engine but want to convert to an electronic drive system? Even then, the tax benefit for e-cars is an issue. Anyone who wants to drive their car between the 18. May 2016 and the 31. If you have already converted or are converting by December 2020, you will also make significant savings. From the day of conversion, converted electric cars are tax-free for a full 10 years, with a 50 percent discount afterwards, as with normal electric cars. Whether the converted vehicle fulfills all the requirements of an electric vehicle is checked by the registration authority.
Do tax benefits apply to hybrids?
To extend the range of electric cars, hybrid vehicles and e-cars with combustion engines are popular as a variant of pure electric vehicles. This raises the question of whether they can benefit from tax advantages, as with the electric car. The answer is clear: No. Vehicles with two types of drive or an additional combustion engine are not considered electric cars. And thus the exemption from vehicle tax does not apply to them either.
Company car tax for e-cars as company cars.
Not only private car owners can enjoy tax concessions. Employees who drive an electric car as a company car and use it privately will also benefit, as we have already shown in our article Company car: electric. You only have to pay tax on 0.5 percent of the list price as a non-cash benefit. Even better if the boss provides an electric charging station for companies: then commuters in particular can travel more flexibly and more cheaply.
Save even more: With further subsidies.
In addition to gifts such as tax exemption and reduced electric car tax, climate-friendly vehicle owners can look forward to further presents. For example, the environmental bonus. It was extended and significantly increased only at the end of 2019. From July 2020, the premium for electric cars with a list price under 30.000 Euro for 4.000 Euro increase. For more expensive electric cars there are 2.500 euro bonus. ENTEGA also promotes climate-friendly mobility, for example with a subsidy for charging stations for electric vehicles in the form of a wall charging station (wallbox).
Basically favorable: Operating costs in general.
The tax saving is the one. The other thing is the many other gifts you can unwrap with an electric car. One of the most important is certainly climate-friendly mobility, especially if you use green electricity from your own wall charging station to charge the battery.
But even when considering the operating costs, it is often cheaper to drive an electric vehicle than a combustion engine. So with fuel savings or maintenance, more financial gifts can be unwrapped, as our operating costs electric car article shows.
Electric car tax: One point more for electric cars.
So tax-wise, there’s quite a bit of savings to be had if you choose an electric car. In addition to the rather favorable operating costs, climate friendliness and other advantages, the electric cars are thus more than just a genuine alternative to conventional combustion engines – all the more so if the positive developments (such as z. B. increasing e-car range) continue in terms of e-mobility of the future.
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