RechnerpediaHow the taxable benefit is calculated
If you may use a company car privately, that use counts as part of your pay (geldwerter Vorteil). Under the 1% rule, 1% of the gross list price is added each month. If you drive the car to work, 0.03% of the list price per kilometre of distance is added, or, if you rarely go to the office, 0.002% per kilometre and trip for at most 180 trips a year.
Base = list price × factor (1; ½; ¼), rounded down to full €100 Benefit = 1% × base + 0.03% × base × km − your payment Net loss = net without car − (net with benefit − benefit)
The benefit increases wage tax and social contributions but is not paid out to you, so we deduct it from net pay again. The difference from your net pay without the car is what the car really costs you.
Electric cars and plug-in hybrids
- Fully electric cars acquired from July 2025 with a list price up to €100,000 count at one quarter (the “0.25% rule”). From 2024 to June 2025 the limit was €70,000, from 2020 to 2023 €60,000. More expensive electric cars count at one half.
- Plug-in hybrids count at one half if they emit at most 50 g CO₂ per km or reach a minimum electric range: 80 km if acquired from 2025, 60 km for 2022 to 2024.
We round the reduced list price down to full €100 afterwards. Some calculators round before the reduction, which can make a difference of a few cents.
Examples
A petrol car with a list price of €45,678.00 and a 20 km commute gives a taxable benefit of €729.60. On €4,000 gross in tax class I the payout drops by €344.18 a month. An electric car for €65,000.00 costs the same person only €120.63. If the list price is above €100,000, for example €105,000.00, one half applies: a benefit of €840.00 a month.
| Car | List price | Taxable benefit | Net pay lost |
|---|---|---|---|
| Petrol car | €35,000.00 | €560.00 | €262.96 |
| Petrol car | €50,000.00 | €800.00 | €378.16 |
| Plug-in hybrid (criteria met) | €50,000.00 | €400.00 | €187.00 |
| Electric car | €50,000.00 | €200.00 | €92.91 |
| Electric car | €90,000.00 | €360.00 | €168.05 |
Sources
- § 6 (1) No. 4 EStG (German)
- § 8 (2) EStG (German)
- § 52 (12) EStG, application periods (German)
- BMF letter of 3 March 2022 on company cars, DATEV summary (German)
Frequently asked questions
What is a taxable benefit (geldwerter Vorteil)?
A benefit in kind you receive from your employer on top of your salary, here the private use of a company car. It is taxed and subject to contributions like pay, even though no money changes hands.
When does the 0.25% rule for electric cars apply?
For fully electric cars acquired after 30 June 2025 with a gross list price of at most €100,000. For earlier acquisitions the limit is €70,000 (2024 to June 2025) or €60,000 (2020 to 2023).
0.03% or 0.002%: which is cheaper?
The per-trip valuation at 0.002% per km and trip pays off if you go to the office on fewer than 15 days a month on average. The calculator shows the comparison below the result.
Does my own payment reduce the benefit?
Yes. A regular usage fee is deducted from the benefit, but only down to zero. A higher fee leads neither to negative pay nor to deductible expenses. One-off contributions to the purchase price can be spread over the period of use.
Can I also claim the commuter allowance?
Yes. The commuter allowance of €0.38 per km is available with a company car too, because you already pay tax on the commute through the 0.03%. Use the commuter allowance calculator.
Is a company car better than a higher salary?
It depends on what a comparable private car would cost you: depreciation, insurance, maintenance and fuel. If that is more than the net loss the calculator shows, the company car is usually cheaper.