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Germany Likely to End EV Car-Tax Exemption for New Registrations in 2026

The finance ministry says the pledged extension to 2035 remains under review, prompting industry warnings that EV uptake could slow.

Overview

  • From 1 January 2026, newly registered battery-electric cars would become subject to the Kfz tax unless the government enacts the promised extension.
  • Vehicles first registered by 31 December 2025 retain up to ten years of relief, capped at the end of 2030.
  • Taxation would follow a weight-based formula with a 50% discount for electric cars, and it would apply to private vehicles and company cars.
  • Illustrative annual costs reported range around €40–€80 for many models, with large SUVs potentially exceeding €300.
  • VDA president Hildegard Müller warns the change could hinder the ramp-up of e-mobility and says some fully electric models could be taxed higher than plug-in hybrids.