Company Car Benefit: 1% Rule vs. Logbook Calculator
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Taxing a company car: When is the 1% rule worthwhile and when should you keep a logbook? Use our comparison.
Company Car Benefit: 1% Rule vs. Logbook in Detail
If you are allowed to use a company car privately, you must pay tax on the so-called benefit in kind (geldwerter Vorteil). The tax office offers two methods: the flat-rate 1% rule and the logbook method. Which method is worthwhile depends on the list price, private usage share, and the type of vehicle.
The 1% Rule in Detail
With the 1% rule, 1% of the domestic gross list price (including special equipment, always the new price) is applied monthly as a benefit in kind. An additional surcharge applies for commuting between home and primary workplace:
Formula: Benefit per month = List price x 1% + List price x 0.03% x one-way distance (km)
Example: List price 50,000 euros, 25 km commute:
50,000 x 1% = 500 euros + 50,000 x 0.03% x 25 = 375 euros = 875 euros benefit/month. At a marginal tax rate of 42%, that means approx. 367 euros in taxes per month.
The Logbook Method
With a logbook, the actual total costs of the vehicle (leasing, insurance, fuel, maintenance, depreciation) are determined and only the percentage of private use is taxed.
Formula: Benefit = Total costs per year x Private share (%)
Example: Total costs 12,000 euros/year, private share 30%:
12,000 x 30% = 3,600 euros/year = 300 euros/month. At 42% marginal tax rate, only approx. 126 euros in taxes per month.
Break-Even Comparison: When Is Each Method Better?
| List Price | 1% Rule (excl. commute) | Logbook 20% private | Logbook 40% private | Logbook 60% private |
|---|---|---|---|---|
| 30,000 euros | 300 euros/mo. | approx. 133 euros/mo. | approx. 267 euros/mo. | approx. 400 euros/mo. |
| 50,000 euros | 500 euros/mo. | approx. 200 euros/mo. | approx. 400 euros/mo. | approx. 600 euros/mo. |
| 70,000 euros | 700 euros/mo. | approx. 283 euros/mo. | approx. 567 euros/mo. | approx. 850 euros/mo. |
Rule of thumb: If private use is below approx. 50%, the logbook is almost always cheaper. With very high private use (over 60%), the 1% rule often wins since there is no administrative burden.
Special Case Electric Cars: The 0.25% Rule
For pure electric vehicles with a gross list price up to 70,000 euros, a significantly reduced basis applies: Instead of 1%, only 0.25% of the list price is used. This makes EVs extremely attractive as company cars.
Practical Tips for Optimization
- Review method annually: You can switch methods at the turn of the year (not mid-year).
- Individual assessment instead of 0.03%: If you commute fewer than 15 days per month (e.g., home office), you can apply for individual assessment at 0.002% per commuting day.
- Offset personal contributions: Your own payments for lease or fuel reduce the taxable benefit.
Sources: BMF guidance on company car taxation, EStG Section 6 Para. 1 No. 4, EStG Section 8 Para. 2
Calculate your comparison: What is cheaper for you - 1% rule or logbook? Use the Company Car Calculator for your individual comparison.
Sources & References (2026)
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.