udo reub, a tax lawyer and business graduate, is responsible for tax issues at finanztip. Previously, he worked for various business and trade publishers such as handelsblatt, F.A.Z.-verlagsgruppe, haufe-lexware and vogel business media – 14 years of which he worked as editor-in-chief of trade magazines. from the complex tax law it draws the relevant rulings for tax savers.
- your car’s engine capacity and carbon dioxide emissions determine how much car tax you have to pay.
- when you register your car, you also register it for taxes. You do not need to do anything else.
- tax rates and also exemption amounts have changed over time. What applies to you always depends on the date of first registration.
- Taxes for trailers and motor homes are calculated according to weight and pollutant class, motorcycles only according to engine capacity. For vintage cars there is a flat rate.
- Register your new car until the end of 2020! From 2021, CO2 emissions will be taxed more heavily – and you will pay more.
- Choose a more environmentally friendly car. Then you pay less taxes. Electric vehicles, for example, are exempt from vehicle tax until 2030 at the latest.
- You submit an application for tax exemption and relief to the customs office in your region.
In this guide
diesel cars pay higher taxes, gasoline cars are cheaper. Sounds simple. But with the motor vehicle tax the devil is in the details. And the seventh (!) reform has new tax rate with seven stages and further changes in the baggage. In this article, you can find out how best to keep track of the costs of your car and what you need to do to save money.
How to calculate the car tax for passenger cars?
If you want to know how much tax you have to pay for your car, you can easily calculate it yourself. Depending on how old your car is, you may need more or less information for it. For all cars that up to and including 4. november 2008 if the car is registered for the first time, the size of the engine capacity and the emissions class are the only decisive factors. You can read the engine displacement in the vehicle registration document, among other things. The emission class of your car is determined by a key number, which you can also find in the vehicle registration document.
Step 1: first determine the so-called base amount, which is determined by the cubic capacity of your car. For a gasoline engine, there is a charge of 2 euros per 100 cubic centimeters or part thereof; for a diesel engine, there is a charge of 9.50 euros per cubic centimeter.
Step 2: then calculate the share for the CO2 emission. In principle, this amounts to 2 euros per gram. However, there are exemptions that vary according to the year of first registration:
- 120 grams of carbon dioxide per kilometer for first-time registration by the end of 2011;
- 110 grams of carbon dioxide per kilometer for first-time registrations from 2012 until the end of 2013 and
- 95 grams of carbon dioxide per kilometer for a later first registration.
Step 3: now add the base amount and the share for carbon dioxide emissions.
Diesel cars with high carbon dioxide emissions will therefore always be MOST taxed.
Example: for a VW golf with 1.390 cubic centimeter displacement, gasoline engine, first registration in 2013, the owner pays 28 euro displacement fee. Of the 149 grams of carbon dioxide that the car emits per kilometer, the first 110 grams are tax-free. So another 78 euros will be added. In total, this results in an annual tax in the amount of 106 euros. If the vehicle was registered for the first time in 2014, the exemption amount is reduced. Then 108 euros are incurred for CO2 emissions and the annual tax is 136 euros.
New CO2 measurement procedure since 1. September 2018
The VW emissions scandal has brought to light manipulations by car manufacturers in determining CO2 emissions. Therefore, since september 2018, a new test procedure has been used to determine the vehicle tax: worldwide harmonized light-duty vehicles test procedure (WLTP).
With the previously used method, manufacturers had more possibilities to create artificially good values on the test bench. The WLTP procedure, on the other hand, prescribes measurements that are based more on real driving conditions. The result is exhaust emissions that are at least similar to emissions in real road use. The result: a higher assessment basis for vehicle tax, thus higher costs. The european union, among others, has now introduced the WLTP method as mandatory.
Depending on the date of the new registration of your car, a different calculation method applies. Here’s an orientation:
Calculation methods of the car tax
This is how the vehicle tax is calculated
allowances:
2011: 120 g/km
2013: 110 g/km
What applies to specific vehicle types?
classic car – vehicles that were first registered at least 30 years ago and are in a condition worth preserving can be given an H license plate. For such historic vehicles, there is a flat-rate vehicle tax of 191.73 euros, for motorcycles 46.02 euros. You can find more details on this in the classic car guide.
Electric vehicles – if you register an electrically powered vehicle for the first time after the age of 18, you will be entitled to a tax credit. May 2011 the car is exempt from vehicle tax for ten years. However, this applies at most until 31. December 2030. The law on tax incentives for electromobility, which came into force in mid-2016, extends this regulation to retrofitted vehicles. Accordingly, the tax exemption also applies if a vehicle is registered after the age of 18. May 2016 has been converted to run on zero emissions. The tax exemption applies to first-time registrations up to the end of 2025. The earlier you register a new e-car, the longer you can benefit from the tax exemption. Once this has expired, the tax for electric cars is based on their total mass and is reduced by half.
The exemption from vehicle tax is accompanied by advantages in terms of wage tax. This is how employees can charge their electric cars at their employer’s premises free of wage tax and social security contributions. To stimulate the purchase of new e-cars, there are currently purchase premiums of up to 9.000 euro. These are awarded until the funding pot is empty, at the most until 2025.
Buy or lease an electric or hybrid company car: in the period 2019 to 2030, you will have to pay significantly less tax on the imputed income. Your employer can halve the calculation basis, the gross list price. Logbook users apply half of the costs accordingly. For an e-car without CO2 emissions that is provided for the first time from 2020, only 25 percent of the gross list price is charged per month.
LPG and natural gas vehicles – by the way, there is no reduction in vehicle tax for vehicles that run on autogas or natural gas. In return, fuel is cheaper: drivers who refuel autogas (LPG) have been receiving a discount on the energy tax (formerly mineral oil tax) at the pump since the end of 2018. Since then, the tax has increased by 20 percent annually until the regular tax rate of 22.09 cents per liter becomes due for liquid gas in 2023. However, there are fewer and fewer cars on the road using this fuel.
The tax privilege for the approximately 100.000 natural gas-vehicles, on the other hand, will remain in force until the end of 2023. After that, the tax on natural gas (CNG) will also be gradually increased to 44.52 cents per kilogram by 2027.
Motorcycles – these vehicles will be taxed according to engine capacity in the vehicle tax. Light motorcycles up to a maximum of 11 kilowatts and 125 cubic centimeters are tax-free. For larger machines, the tax authorities charge 1.84 euros per 25 cubic centimeters of engine capacity or part thereof.
motor homes – if the vehicle can be used for residential purposes, it could be registered as a mobile home. The minimum equipment includes: fixed sleeping berths, which also include fold-down seats; a seat with table; a kitchen with hob and sink, and storage space. Vehicle tax is calculated on the basis of the vehicle weight and the pollutant class.
Example: for a caravan with a total weight of 2.700 kilograms in emission class S2 and a weight of up to 2.000 kilograms, the owner pays 24 euros for every 200 kilograms or part thereof, or 240 euros. Above 2.000 kilograms, he pays another 10 euro per 200 kilograms or part thereof, which makes another 40 euro. In total, the owner will pay an annual tax of 280 euros.
Trailer – Vehicle tax for trailers subject to registration is calculated solely on the basis of weight: 7.46 euros are due for every 200 kilograms, up to a maximum of 373 euros. With a green license plate, a trailer can be used tax-free. This applies to trailers
- For transporting sports equipment, such as horse transporters or trailers for boats
- Rear towing vehicles for which a trailer surcharge has already been assessed
Trucks – the tax for a truck is also based on the total permissible weight and increases in 200 kilogram increments. The tariff is also graduated according to weight, so that heavier trucks are taxed progressively. If the weight exceeds 3.5 tons, the pollutant and noise classes are also included in the tax calculation.
Light commercial vehicles – while trucks are taxed by weight, this did not apply in the meantime to light commercial vehicles up to 3.5 tons. These are cars that offer more seating space than space for transporting goods. This somewhat cumbersome regulation has not proven itself in practice and has led to many errors. Light commercial vehicles are also by weight again from 2021 taxed and are therefore normally more favorable. This will especially benefit craft businesses and families. you often use such vehicles with which you can transport both people and goods.
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