What Is a Job Car via Salary Sacrifice (Gehaltsumwandlung)?
A Job Car is a vehicle provided to you by your employer through a **salary sacrifice (Gehaltsumwandlung)** scheme. Unlike a classic company car (Firmenwagen) where the employer covers all costs, with a Job Car you forfeit a portion of your gross monthly salary in exchange for the vehicle. This is usually arranged via a full-service car subscription (Auto-Abo) or lease – covering insurance, maintenance, tires, and roadside assistance.
For detailed calculations, you can use our free job car calculator.
How Does Salary Sacrifice Work for a Job Car?
Your employer signs a contract with a car subscription or leasing company. The monthly subscription rate is deducted from your **gross salary (Bruttogehalt)** – *before* taxes and social security contributions are calculated. This lowers your taxable income, saving you income tax and social security contributions.
However, since you use the car privately, you must pay tax on the **monetary benefit (geldwerter Vorteil)**. This is usually done via the **1% method (1%-Regelung)** based on the manufacturer's gross list price (Bruttolistenpreis).
Significant Tax Advantages for Electric Vehicles (E-Autos)
The salary sacrifice model is exceptionally lucrative for electric vehicles. For 2026, the taxation of the monetary benefit is reduced as follows:
- Electric Cars up to 70,000 € list price: 0.25% monthly taxation.
- Electric Cars over 70,000 € list price: 0.5% monthly taxation.
- Plug-in Hybrids (min. 80 km electric range): 0.5% monthly taxation.
- Internal Combustion Engine (ICE) Cars: 1.0% monthly taxation.
Job Car vs. Private Leasing: A Net Cost Comparison
Assumptions: Employee, gross salary 4,000 €/month, tax class I, childless, no church tax, 20 km one-way commute. Car list price: 35,000 € (ICE). Values are rounded approximations for 2026:
| Monthly Subscription Rate | Gross Deduction | Net Cost: Job Car* | Net Cost: Private Lease | Monthly Savings |
|---|---|---|---|---|
| 300 € | 300 € | approx. 195 € | 300 € | approx. 105 € |
| 400 € | 400 € | approx. 252 € | 400 € | approx. 148 € |
| 500 € | 500 € | approx. 310 € | 500 € | approx. 190 € |
| 600 € | 600 € | approx. 368 € | 600 € | approx. 232 € |
* The net cost for the Job Car includes tax and social security savings, offset by the monetary benefit tax (1% rule: 350 € + 0.03% × 35,000 × 20 km = 210 € tax base).
Important Risks and Drawbacks
- Reduced Pension & Benefits: Because your gross salary is lower, your future statutory pension, unemployment benefits (Arbeitslosengeld 1), and parental allowance (Elterngeld) will be slightly reduced.
- Employer Change: If you leave the company, transferring the subscription contract can be difficult.
- No Ownership: You do not own the car; you return it at the end of the subscription or lease.
Sources: § 8 Abs. 2 EStG, § 6 Abs. 1 Nr. 4 EStG, BMF guidelines, as of 2026.