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Company Car: What Does It Really Cost?

Calculate the benefit in kind for your company car. Including special rules for electric and hybrid vehicles.

Vehicle Data

The list price at first registration incl. special equipment & VAT.

km
Benefit in Kind (Monthly)
652,50 €
This amount is added to your gross salary and taxed.
Calculation Details
Applied Rule1% Rule
Flat Value (1%)450,00 €
Home-to-Work Trips (0,03% x 15km)202,50 €
Total652,50 €

Company Car Taxation: The 1% Rule Explained

If you use a company car for private purposes, this constitutes a taxable benefit in kind. The simplest method is the 1% rule: 1% of the gross list price is added to your gross salary each month.

Electric Car Privilege

Electric and plug-in hybrid vehicles benefit from reduced taxation rates:

  • Pure EV (up to 70,000 Euro)0.25%
  • Pure EV (over 70,000 Euro)0.50%
  • Plug-in Hybrid0.50%

Alternative: Logbook Method

Instead of the 1% rule, you can keep a logbook to document actual costs. This is worthwhile when:

  • The vehicle has a high list price but low private usage
  • You drive primarily for business purposes
  • The actual running costs are relatively low

Comparison: Vehicle Types at 50,000 Euro List Price

Monthly taxable benefit in kind for a company car with a list price of 50,000 euros and 20 km commute:

Vehicle TypeApplied RuleMonthly Tax Base
Diesel / Gasoline1.0% Rule500 Euro
Plug-in Hybrid0.5% Rule250 Euro
Pure Electric0.25% Rule125 Euro

Plus commute taxation: 0.03% of list price x km distance per month (same reductions apply for EV/hybrid).

Sources & References (2026)

Federal Ministry of Finance
Official tax tables and tax calculation guidelines.
German Pension Insurance
Current pension values and contribution assessment ceilings.
Federal Ministry of Health
Social security contribution rates and thresholds.

All calculations are based on the official legal provisions for 2026. Despite careful research, no guarantee is given for correctness. This calculator does not replace professional tax advice.

More Helpful Calculators & Guides

German Company Car Calculator 2026 | Benefit in Kind Tax in Germany | Brutto Netto Rechner