Key takeaways

• You must pay motor vehicle tax in Germany.
• The vehicle tax depends on your car type, engine capacity, and CO2 emissions.
• You can use a vehicle tax calculator to check how much vehicle tax you must pay.
• The authorities’ method of calculating vehicle tax has changed over time. Your car’s first registration date determines how the tax will be calculated.
• Purely electric car owners are exempt from paying vehicle tax until Dec 2030. 

This is how you do it

• To save on vehicle taxes, you must buy an environmentally friendly vehicle. 
• You can’t do much about the vehicle tax in Germany. However, you can save a lot by picking the right car insurance.
• GermanPedia recommends comparing car insurance on Verivox* and Check24*.

Table of Contents

What is the motor vehicle tax (Kraftfahrzeugsteuer) in Germany?

Buying a new car is exciting. However, owning a car has its expenses. One of the expenses is the motor vehicle tax.

Every car owner in Germany must pay vehicle tax. How much car tax (Kraftfahrzeugsteuer) you must pay depends on your vehicle.

You can pay vehicle tax annually, semi-annually, or quarterly. But paying it annually can save you some money.

Motor vehicle authorities in Germany charge a surcharge of 3% if you pay vehicle tax semi-annually and 6% for quarterly payments.

There is not much you can do about the car tax. But you can save a lot on car insurance. Learn about it in our guide on how to find cheap car insurance in Germany.

How do you calculate vehicle tax in Germany?

How the tax authorities calculate the motor vehicle tax depends on the following parameters.

• First registration date: This is the date the vehicle was registered for the first time. Don’t confuse it with the re-registration date of a used car that changed owners. 
• Fuel type: Petrol, diesel, electric, hybrid, CNG, LPG, etc.
• Vehicle type: Electric, motorcycles, trailer, caravan, truck, etc.
• Engine displacement capacity (Hubraum)
• CO2 emission
• Weight of the vehicle

Vehicle tax calculation for cars first registered before 4 Nov. 2018

The vehicle tax for cars registered up to and including 4 Nov. 2008 is calculated based on the following factors.

• Fuel type
• Engine size or Displacement capacity (Hubraum)
• Emissions class.

All this information is on your vehicle registration document.

You can use the motor vehicle tax calculator from the Federal Ministry of Finance to calculate the car tax.

Vehicle tax calculation for cars first registered between 5 Nov 2008 and 31 Dec 2020

The formula for calculating motor vehicle tax in Germany.

Motor vehicle tax = Base amount + Tax based on CO2 emissions

Here is how the “base amount” (Sockelbetrag) is calculated.

• Base amount for a petrol engine: It’s 2 € for every 100 cubic centimeters of engine displacement capacity.
• Base amount for diesel engine: It’s 9.50 € for every 100 cubic centimeters of engine displacement capacity

Here is how the tax based on CO2 emission is calculated.

• It’s 2 € per gram of CO2 emission per kilometer. 
• You can deduct the CO2 emission allowances for cars first registered at a particular time.

There are two methods for calculating CO2 emissions at the car workshop: WLTP and NEFZ. WLTP is the new method.

The CO2 emission results from the WLTP method are based on real driving conditions. For cars first registered from 1 Sep. 2018, the WLTP method is used. 

The CO2 emission value calculated using the WLTP method is usually higher than that with the NEFZ.

The table below shows the CO2 emission allowances in Germany.

Vehicle first registration date	CO2 emission allowance
Before the 31 Dec 2011	120 g/km
Between 1 Jan 2012 to 31 Dec 2013	110 g/km
Between 1 Jan 2014 to 31 Aug 2018	95 g/km
Between 1 Sep 2018 to 31 Dec 2020	95 g/km (WLTP method is used for calculating CO2 emission)

Example:

	Petrol Engine	Diesel Engine
First vehicle registration date	2013	2013
Displacement capacity	1000 cc	1000 cc
Base amount	20 € (2 * (1000 / 100))	95 € (9.5 * (1000 / 100))
CO2 emissions	149 g/km	149 g/km
CO2 emission allowance	110 g/km	110 g/km
Tax based on CO2 emission	78 € (2 * (149 – 110))	78 € (2 * (149 – 110))
Total motor vehicle tax	98 € (20 + 78) per annum	173 € (95 + 78) per annum

Vehicle tax calculation for cars first registered from 1 Jan. 2021

The motor vehicle tax formula stays the same. However, how you calculate the “tax based on CO2 emissions” has changed (§ 9 Para 1 No. 2 Letter c Motor Vehicle Tax Act (new)).

In the new calculation, tax authorities use a progressive approach. The tax rate increases progressively from 2 € per g/km in level 1 to 4 € in level 6.

The authorities divide the CO2 emission amount between the different levels to calculate the tax.

Level	CO2 emissions	Tax rate
1	over 95 g/km to 115 g/km	2 €
2	over 115 g/km to 135 g/km	2.20 €
3	over 135 g/km to 155 g/km	2.50 €
4	over 155 g/km to 175 g/km	2.90 €
5	over 175 g/km to 195 g/km	3.40 €
6	over 195 g/km	4 €

Source: [1]

Let’s understand how the “tax based on CO2 emission” is calculated with an example.

	Petrol	Diesel
Displacement capacity	1000 cc	1000 cc
CO2 emission calculated with the WLTP method	167 g/km	204 g/km
Tax based on CO2 emission
till 95 g/km	0 €	0 €
over 95 g/km to 115 g/km	40 € (20 * 2 € per g/km)	40 € (20 * 2 € per g/km)
over 115 g/km to 135 g/km	44 € (20 * 2.2 € per g/km)	44 € (20 * 2.2 € per g/km)
over 135 g/km to 155 g/km	50 € (20 * 2.5 € per g/km)	50 € (20 * 2.5 € per g/km)
over 155 g/km to 175 g/km	34.8 € (12 * 2.9 € per g/km)	58 € (20 * 2.9 € per g/km)
over 175 g/km to 195 g/km	–	68 € (20 * 3.4 € per g/km)
over 195 g/km	–	36 € (9 * 4 € per g/km)
Total tax based on CO2 emission	168.8 € (40+44+50+34.8)	296 € (40+44+50+58+68+36)
Base amount calculation is the same	20 € (2 € * (1000 / 100))	95 € (9.5 € * (1000 / 100))
Total motor vehicle tax	188.8 € (168.8 + 20)	391 € (296 + 95)

Changes in German vehicle tax since 1 January 2021

There are four major changes in the German Motor Vehicle Tax Act.

• The calculation of taxes based on CO2 emission is now a progressive tax rate instead of a uniform tax rate.
• The low-emission cars (below 95 g/km) first registered between 12 June 2020 and 31 Dec 2024 will get a tax relief of 30 € per year. The tax relief is levied for five years. Thus, you can save 150 € in vehicle tax relief.
• The 10-year tax exemption for purely electric cars is extended to 31 Dec. 2025. However, you can enjoy the tax exemption till 2030. This means if you first register your car in 2024, you’ll pay no tax until 2030. From Jan 2031, you must pay vehicle tax.

Motor vehicle tax calculator

There are many car tax calculators available online. However, we recommend using the vehicle tax calculator from the Federal Ministry of Finance.

You can find it here.

Motor vehicle tax for special cars

Vehicle tax on antique cars in Germany

Cars first registered at least 30 years ago that are in good condition come under the antique cars category. These cars can get an H license plate. 

You pay a flat-rate vehicle tax of 191.73 € for antique cars in Germany and 46.02 € for motorcycles.

Vehicle tax on electric vehicles in Germany

Electric vehicles first registered before 31 December 2025 are exempt from vehicle tax in Germany. The tax exemption applies until 31 December 2030.

This means you’ll pay no vehicle tax until 31 Dec 2030 on purely electric vehicles in Germany.

Vehicle tax on motorcycles in Germany

• The tax is based on the engine capacity of the motorcycle.
• Light motorcycles with a maximum of 11 kilowatts and 125 cubic centimeters are tax-free. This also applies to motorcycles with a maximum speed of 45 km/h.
• You pay 1.84 € vehicle tax for every 25 cubic centimeters of engine capacity for large motorcycles.

Motor vehicle tax on motorhomes in Germany

If the vehicle can be used for residential purposes, you can register it as a motorhome. To qualify as a motor home, the vehicle must have at least the following equipment.

• a built-in place to sleep,
• fold-down seats,
• a seating area with a table,
• a kitchen with a stove and sink, and
• storage space.

The vehicle tax is based on the vehicle’s weight and emissions class.

Do you pay vehicle tax on trailers in Germany?

The vehicle tax for trailers that require registration is calculated based on weight alone. ​​You pay 7.46 € tax for every 200 kg. The vehicle tax is limited to a maximum of 373.24 €.

You don’t pay vehicle tax for trailers with a green license plate. This applies to trailers

• for transporting sports equipment, such as horse trailers or trailers for boats.
• behind the tractors for which a trailer surcharge has already been set.

Motor vehicle tax on trucks

The tax for trucks, buses, and other vehicles over 3.5 tonnes is based on

• the permissible total weight,
• pollutant, and
• noise class.

Light commercial vehicles

After the amendment in the Motor Vehicle Tax Act in 2021, the tax on light commercial vehicles is also calculated based on their weight.

Light vehicles

You also pay vehicle tax on light vehicles such as quads, trikes, etc. The tax authority calculates the tax based on the following parameters.

• pollutant emissions,
• engine capacity, and
• type of engine (petrol or diesel engine)

Tax exemption for agricultural use 

Vehicles used exclusively for agricultural or forestry purposes are exempt from tax. You can find more about it on the customs website.

The German government planned to dismiss the tax exemption on agricultural vehicles in December 2023. However, after multiple days of strikes by the farmers, the government backed down on the proposal.

How can you save on vehicle tax in Germany?

• Buy environment-friendly vehicles, like electric cars, low-emission cars, etc.
• Pay the vehicle tax annually instead of semi-annually or quarterly. The tax office charges a surcharge of 3% if you pay tax semi-annually and 6% for quarterly payments.
• Disabled people with classification “H” (helpless), “BI” (blind/visually impaired), and “aG” (exceptional walking disability) are exempt from the vehicle tax.
• Disabled people with classifications “G” and “GI” enjoy a 50% tax reduction.

You can save more on car insurance than on vehicle tax. Learn more about this here.

Can you deduct vehicle tax from your income tax return in Germany?

Yes, self-employed people can deduct vehicle tax from their income tax return. You can deduct it as a business expense.

However, you must use the vehicle for business at least 50% of the time.

You cannot deduct the vehicle tax if you use the car to go to work. However, you can take advantage of the travel allowance. 

Read our guide on how to save taxes in Germany to learn more.

References

• https://www.bundesfinanzministerium.de/Web/DE/Service/Apps_Rechner/KfzRechner/KfzRechner.html
• https://www.zoll.de/SharedDocs/Fachmeldungen/Aktuelle-Einzelmeldungen/2020/kfz_aenderungen_7_kraftstaendg.html?nn=290344
• https://www.adac.de/rund-ums-fahrzeug/auto-kaufen-verkaufen/kfz-steuer/kfz-steuer-rechner/
• https://www.finanztip.de/kfz-steuer/