Netto Rechner
DE

Company Car Tax Calculator Germany 2026

Calculate the taxable benefit in kind (geldwerter Vorteil) of a company car under the German 1% rule. The calculator shows the additional monthly tax burden and your real net benefit.

Vehicle and employment details

About the company car tax calculator

The company car tax calculator determines the benefit in kind (geldwerter Vorteil) of a company car under the German 1% rule (Section 6 (1) no. 4 sentence 2 of the German Income Tax Act, EStG).

The 1% rule at a glance:

  • • Private use: 1% of the gross list price per month
  • • Commute: 0.03% per kilometre of one-way distance
  • • Benefit in kind: the sum of private use and commute

Additional tax burden:

The benefit in kind is treated as additional income. The resulting extra tax is deducted from the benefit to show the real net advantage of the company car.

Note: This is a guidance tool. Consult a tax advisor for exact calculations based on your personal circumstances.

Company car taxation in Germany: the 1% rule in 2026

A company car with private use is one of the most popular salary perks in Germany – but it is not free. The tax office treats the option of private use as a benefit in kind (geldwerter Vorteil) that is taxed like salary. By far the most common method is the flat-rate 1% rule: 1 % of the gross list price per month, plus 0.03 % per kilometre of one-way distance for the commute.

A worked example

Company car with a 45,000 € list price and a 15 km commute: the monthly benefit in kind is 450 € (1 %) plus 202.50 € (0.03 % × 15 km) = 652.50 €. This amount is added to your gross salary and increases taxes and social security contributions. How much net pay you actually lose depends on your personal tax rate – which is exactly what our calculator above works out. For other non-cash benefits such as a job ticket or meal subsidies, use the benefit in kind calculator.

The list price counts – not the purchase price

The basis is always the German gross list price at first registration including optional equipment – even for used cars, leased vehicles or large dealer discounts. If you are weighing the company car against a pay rise, you can compare both scenarios directly with the German salary calculator.

FAQ: Company car taxation in Germany

How does the 1% rule for company cars work in Germany?⌄
Under the 1% rule, 1 % of the vehicle's gross list price (at first registration, including optional equipment) is added to your salary every month as a benefit in kind (geldwerter Vorteil) and taxed like regular income. For the commute, an additional 0.03 % of the list price per kilometre of one-way distance is added each month.
What does the 0.03 % surcharge per commuting kilometre mean?⌄
If you also use the company car for trips between home and your primary workplace, the benefit in kind increases by 0.03 % of the list price per kilometre of one-way distance. With a list price of 40,000 € and a 20 km commute, that adds 240 € per month. If you only drive to the office occasionally, an individual valuation of 0.002 % per trip is possible instead.
Do electric cars get more favourable rules?⌄
Yes. For fully electric vehicles only a quarter of the list price is used as the tax base (the 0.25 % rule, up to the statutory list-price cap); for plug-in hybrids, half (0.5 %) applies under certain conditions. An electric company car is therefore often much more attractive for tax purposes than a comparable combustion car. Our calculator currently models the classic 1% rule.
Is a mileage logbook (Fahrtenbuch) worth it instead of the 1% rule?⌄
A proper mileage logbook pays off above all if you use the car mostly for business, the vehicle has a high list price, or it is already fully depreciated. In that case only the actual costs of private use are taxed. The effort is considerable, though: every trip must be documented promptly and without gaps.
Do I have to pay tax on a company car used only for business?⌄
No. A benefit in kind only arises if you are also allowed to use the car privately. If private use is effectively excluded in your employment contract and the ban is monitored, no tax is due. Simply claiming that you never use the car privately is not enough for the tax office (Finanzamt), however.
Does a company car affect social security contributions?⌄
Yes. The benefit in kind increases your contributory gross pay and with it your contributions to health, long-term care, pension and unemployment insurance – at least up to the respective contribution assessment ceilings. For salaries above those ceilings, only your taxes increase because of the company car.

More English calculators

German Salary CalculatorGross to net salary 2026Income Tax CalculatorGerman income tax (Lohnsteuer)Net-to-Gross CalculatorRequired gross for your target netHourly Wage CalculatorHourly rate ↔ monthly salarySalary Increase CalculatorWhat a raise means after taxTax Class CalculatorCompare all 6 German tax classes