The current transition of general mobility to electric vehicles is above all an important contribution to environmental protection. However, as the number of new registrations of electric vehicles falls short of expectations, the Federal Government is driving the trend further through tax advantages and subsidies. Consequently, there is no temporary vehicle tax on electric vehicles. Now the Federal Government is extending the existing term until 31 December 2025. So if you buy a new electric car or another electric vehicle in the next few years, you can save the car tax for ten years from the day of first registration. You can claim the tax exemption for the car tax also for used electric vehicles over the remaining term. But even after the exemption expires, the car tax on electric vehicles is only 50% of the tax otherwise incurred.

To begin with, we want to inform you about the different types of vehicles that the legislature considers in the tax promotion by exemption from the car tax. First and foremost, of course, these are the electric cars. Of course, trucks and buses as well as all other types of vehicles with this type of drive come into consideration. In addition, this applies both to motorcycles and to other purely electric two-wheelers, provided that they are faster than 25 km/h and therefore require registration. This also affects certain e-bikes. The legal basis for this was created in § 2 EmoG or § 9 paragraph 2 KraftStG.

Although this is rather rare, the rules on vehicle tax for electric vehicles also apply to those vehicles that previously had an internal combustion engine and are now purely electric by conversion. In this case, the date of acceptance and registration of the new drive system in the vehicle registration certificate shall be deemed to be the date from which the vehicle is to be treated as an electric vehicle at vehicle tax.

In addition to the pure electric cars and the other electric vehicles mentioned, which draw their energy from a battery, the rules for vehicle taxation also apply to vehicles with hydrogen drive. Although these vehicles are also an exception in the street scene, they also benefit from the tax advantages that apply to electric vehicles due to their environmentally friendly drive configuration. In addition, they are still regarded as forward-looking.

On the other hand, hybrid vehicles or electric cars equipped with a range extender powered by fuel are equated to vehicles using an internal combustion engine as a means of propulsion in car tax.

2nd vehicle tax exemption extended until the end of 2025

Originally for electric cars until 17.05.2011 a tax exemption from the vehicle tax for a period of 5 years from the date of first registration. Since 18.05.2011, the car tax exemption of pure electric vehicles has been extended from 5 to 10 years due to the rather small number of registrations. So far, the tax exemption has been accompanied by a time limit of 31.12.2020. But now the Bundestag has approved a further extension of the tax exemption for newly registered electric vehicles until 31.12.2025. This change takes place as part of a reform of the car tax, with which the Federal government in return also adapts the taxation of cars with combustion engines to its climate goals. In future, for example, the amount of carbon dioxide emitted by these conventional vehicles will be decisive for the car tax.

So whoever buys a new electric vehicle in the near future saves the car tax for 10 years. Consequently, if you want to benefit from the ten-year tax exemption for car tax by switching to electromobility, you should make the decision and implement it as early as possible. Considering the sometimes long waiting times of the manufacturers until the delivery of a new vehicle, such a project can actually soon be close. This is especially true for such vehicles, which are still to be on the market in the coming years until the end of 2025.

After a resale, the following owners of an electric vehicle also benefit, provided the duration of the maximum tax exemption is undershot. Because then the exemption from the car tax simply continues for the remaining period, so that the new owner at least benefits from a share of the exemption in the car tax. In other words, the car tax exemption privilege is transferable because it is tied to the electric vehicle instead of the first owner.

Further advantage in the car tax of electric vehicles

Anyone who has already been able to use the maximum period of tax exemption will continue to benefit from tax. The financial advantage is justified in the tax base for the amount of the vehicle tax for pure electric vehicles, because here the permissible total weight of the vehicle is considered as a requirement.

Electric cars are in this respect subject to a staggering in three weight classes, which reaches up to a maximum of 3,500 kg. For each 200 kg started, a tax of 50% of either EUR 11.25 (up to 2,000 kg permissible total weight) or EUR 12.02 (2,000-3,000 kg permissible total weight) or EUR 12.78 (over 3,000 to a maximum of 3,500 kg permissible total weight) is levied. For example, a Tesla Model S weighs about 2,100 kg, so that a car tax of around EUR 66.00 is compared. A comparable competing model with combustion engine is already burdened with a significantly higher vehicle tax. But also for small cars is to be expected with a noticeable tax relief.