How does the 1%-Regelung for company cars work in 2026?

If a company car is available for private use, the taxable benefit (geldwerter Vorteil) is 1% of the gross list price (Bruttolistenpreis, rounded down to full €100) per month for private use, plus 0.03% of the list price per kilometre of your one-way commute per month. This benefit is added to your gross salary and taxed and charged social security like normal pay, even though you do not receive it as cash.

What is the 0.25% rule for electric company cars in 2026?

Pure electric company cars with a gross list price up to €100,000 are taxed on only a quarter of the list price — effectively 0.25% instead of 1% per month (and the 0.03%/km commute benefit is reduced the same way). The €100,000 threshold was raised from €60,000 in 2025 and applies for 2026. Above €100,000, electric cars and most qualifying plug-in hybrids use the 0.5% (half) rule.

Does a company car reduce my net salary?

Yes. The geldwerter Vorteil is added to your gross to calculate wage tax and social security, but it is then subtracted again because you do not receive it in cash. The net effect is that your take-home pay falls by the extra tax and social security on the benefit — for a €50,000 combustion car with a 20 km commute and a €4,000 salary, that is roughly €350–€400 a month.

Is the 1% based on the price I paid for the car?

No. It is always the gross list price (Bruttolistenpreis) at first registration — the manufacturer's recommended retail price including VAT and factory options — even for a used or heavily discounted car, rounded down to the next full €100. Discounts, leasing rates and the actual purchase price are irrelevant for the 1%-Regelung.

🚙 Company Car Calculator (Dienstwagen 1%-Regelung)

Work out the taxable benefit (geldwerter Vorteil) of a German company car for 2026 under the 1%-Regelung — including the 0.25% rule for electric cars up to €100,000 — and exactly what it costs your net pay.

Gross List Price (Bruttolistenpreis)

Vehicle Type

One-Way Commute Distance (km)

Your salary — for the net-pay effect

Gross Salary (Brutto)

Period

Tax Class (Steuerklasse)

Federal State (Bundesland)

Item	Monthly	Yearly
Private Use (1% rule × factor)	—	—
Commute (0.03%/km × factor)	—	—
Taxable Benefit (geldwerter Vorteil)	—	—
Net Without Car	—	—
Net With Car (cash in pocket)	—	—
Cost of the Car to Your Net	—	—

⚠️ Guidance only. This uses the standard 1%-Regelung (1% of the gross list price per month for private use, plus 0.03%/km per month for the commute), with the reduced base for electric cars (0.25% up to €100,000 list price, 0.5% above) and plug-in hybrids (0.5%). The benefit is added to your gross for wage tax and social security and then removed as it is not paid in cash, so the "cost to net" is the extra tax and social security it triggers. It does not model the Fahrtenbuch (logbook) method, the 0.002%/km single-trip rule, or employer fuel/charging contributions. For payroll-exact figures consult your employer or Steuerberater.

How company-car tax (1%-Regelung) works in 2026

When your employer gives you a company car (Dienstwagen) that you may also use privately, that private use is a benefit in kind — the geldwerter Vorteil. The simplest and most common way to value it is the 1%-Regelung: every month you are taxed on 1% of the car's gross list price for private use, plus 0.03% of the list price for each kilometre of your one-way commute. The list price is the Bruttolistenpreis at first registration — the RRP including VAT and options, rounded down to full €100 — regardless of any discount you or your employer actually got.

Electric and hybrid cars

To encourage low-emission cars, the assessment base is cut for electric vehicles: a pure EV with a list price up to €100,000 is taxed on just a quarter of the value — effectively 0.25% instead of 1% (the €100,000 threshold was raised from €60,000 in 2025). EVs above €100,000 and most qualifying plug-in hybrids use the 0.5% (half) rule. The reduction applies to the commute portion too.

What it costs you

The geldwerter Vorteil is added to your gross salary so that wage tax and social-security contributions are calculated on the higher amount — then it is subtracted again, because you never receive it as cash. The result is that your take-home pay falls by exactly the additional tax and social security the benefit triggers. This calculator shows that net difference using the official 2026 wage-tax tariff and contribution rates.

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Important Note: This tool is intended to provide estimates and should not be used as a substitute for professional advice. Information generated by these calculators may be incomplete and does not account for all individual circumstances. Always seek the counsel of a certified expert (such as a financial advisor, healthcare provider, or licensed engineer) before taking action based on these results.

Related Calculators

German Salary Calculator (Brutto-Netto) — Net pay from gross by Steuerklasse and Bundesland.
Pendlerpauschale Calculator — The commuter allowance at 0.38 €/km for 2026.
Lease vs Buy a Car — Compare the total cost of leasing versus buying.