Germany Car Tax KFZ-Steuer 2026: CO2-Based Engine Guide

April 29, 2026 in Berlin, Germany — Germany's vehicle tax (KFZ-Steuer) is one of the most sophisticated in the world, combining engine displacement with CO2 emissions to create a truly carbon-based tax. With diesel cars facing significantly higher rates than petrol, and EVs getting a full 10-year exemption, understanding KFZ-Steuer is essential for any German car buyer in 2026.

How German Car Tax Works: The Two-Component System

Germany's KFZ-Steuer combines two separate tax components:

Engine capacity tax: Based on engine size in cubic centimetres (cc)
CO2 tax: Based on grams of CO2 emitted per kilometre above a threshold

The tax applies annually and is collected through the German customs authority (Zoll). The good news: German car tax is relatively transparent and calculable once you know the formula.

Engine Capacity Tax Rates

Fuel Type	Rate per 100cc	1.0L (1000cc)	1.5L (1500cc)	2.0L (2000cc)
Petrol	€2.00	€20	€30	€40
Diesel	€9.50	€95	€142.50	€190

A diesel engine pays nearly 5x the engine-capacity tax of a petrol engine of the same size. This alone makes a 2.0L diesel cost €150/year more than a 2.0L petrol in engine-capacity tax.

CO2 Tax Component

All cars emitting over 95g/km of CO2 pay additional annual tax for the first 10 years of registration:

CO2 tax = (CO2 g/km - 95) x €2

CO2 Emissions (g/km)	Excess over 95g	Annual CO2 Tax	Years Applied
95 (threshold)	0	€0	10
120	25	€50	10
140	45	€90	10
160	65	€130	10
180	85	€170	10
200+	105+	€210+	10

Total KFZ-Steuer by Engine Size and CO2

Vehicle Type	Engine	CO2	Engine Tax	CO2 Tax	Total/Year
Petrol hatchback	1.4L	120g	€28	€50	€78
Petrol SUV	2.0L	155g	€40	€120	€160
Diesel family car	1.6L	125g	€152	€60	€212
Diesel SUV	2.0L	145g	€190	€100	€290
Large diesel SUV	3.0L	175g	€285	€160	€445

Electric Vehicle Exemption

Battery electric vehicles (BEVs) registered by December 31, 2030 receive a full 10-year exemption from KFZ-Steuer. This means:

New BEV registered in 2026: €0 tax until 2036
BEV registered in 2029: €0 tax until 2039
After exemption ends: EVs pay €0 engine-capacity tax (no fuel type), only CO2 component (which is €0 since EVs emit 0g/km)

In practice, EVs are permanently exempt from KFZ-Steuer because even after the 10-year exemption, the €0 CO2 component means zero annual tax.

Environmental Zones and Diesel Bans

Several German cities have introduced environmental zones that affect which vehicles can be driven:

City	Low-Emission Zone	Diesel Ban	Fine for Violation
Stuttgart	Yes — green sticker required	Yes — older diesel restricted	€80+
Frankfurt	Yes	Partial	€80+
Berlin	Yes — green sticker required	No full ban	€80
Hamburg	Yes	Yes — specific streets	€80+
Munich	Yes — green sticker required	No full ban	€80

The Feinstaubplakette (particle sticker) system classifies vehicles by Euro emissions standard. Green stickers (Euro 4 and above for petrol, Euro 6 and above for diesel) allow access to all zones.

Germany vs Other EU Countries: Car Tax Comparison

Country	Tax System	Typical Annual Tax	EV Policy
Germany	CC + CO2	€80-€400	10-year exemption
France	CO2 malus/bonus	€0-€50,000	Bonus écologique up to €7,000
UK	CO2 first year, flat after	£190-£2,605	£0 first year, then £190
Netherlands	CO2-based BPM	€0-€4,000+	EV exempt until 2025
Sweden	CO2-based	SEK 360-50,000	Car tax reduction

How to Calculate Your KFZ-Steuer

Formula: Annual KFZ-Steuer = (cc / 100) x rate + max(0, (CO2 - 95) x €2)

Example 1 — 1.6L petrol, 130g/km: (1600/100) x €2 + (130-95) x €2 = €32 + €70 = €102/year

Example 2 — 2.0L diesel, 145g/km: (2000/100) x €9.50 + (145-95) x €2 = €190 + €100 = €290/year

Example 3 — BEV (any): €0 engine tax + €0 CO2 tax = €0/year (exempt until 2031+)

Conclusion

German KFZ-Steuer combines engine capacity and CO2 to create a genuinely eco-based vehicle tax. Diesel cars pay significantly more than petrol — a 2.0L diesel costs €290/year versus €160/year for a 2.0L petrol with similar emissions. EVs enjoy a 10-year exemption (until 2030 registration) and are permanently cheaper post-exemption due to 0g/km CO2. Use our Germany Car Tax Calculator to find your exact annual KFZ-Steuer.

Disclaimer: KFZ-Steuer rates based on Zoll (German Customs) data as of April 2026. Confirm rates at zollertrag.de before purchasing or registering a vehicle in Germany.

Official Resources: German Customs Zoll | Federal Finance Ministry | Federal Environment Agency

Questions

How is KFZ-Steuer calculated in Germany in 2026?

Germany calculates vehicle tax based on engine displacement (cc) for petrol cars and adds a CO2 component for all cars. Petrol cars pay a flat rate per 100cc of engine capacity. Diesel cars pay more per 100cc. Additionally, all cars emit CO2 over 95g/km pay €2 per gram. Tax is annual and collected with the vehicle registration (Zulassung).

How much tax on a diesel car vs petrol in Germany?

Diesel cars pay €9.50 per 100cc engine capacity, while petrol cars pay €2 per 100cc. This means a 2.0L (2000cc) diesel car pays €190 in engine-capacity tax alone, versus €40 for a petrol car of the same size. Then add CO2 tax on top for cars over 95g/km.

What is the CO2 component of German vehicle tax?

For cars registered after 2021, the CO2 component starts at €2 per gram of CO2 per kilometre above a 95g/km threshold, applied for the first 10 years of registration. For cars registered before 2021, the threshold is 120g/km. A car emitting 140g/km pays €90/year in CO2 tax for 10 years.

Are electric cars tax-free in Germany?

Battery electric vehicles (BEVs) registered by December 31, 2030 are fully exempt from KFZ-Steuer for 10 years from first registration. This exemption applies to both new and existing EVs registered before 2031. After the exemption period, EVs pay no engine-capacity tax (only minimal CO2 tax, which is €0 for 0g/km).

How much is German car tax on a 2.0L vehicle?

A 2.0L (2000cc) petrol car with 135g/km CO2 emissions pays: €40 engine capacity tax + €80 CO2 tax (140g - 95g threshold = 40g x €2) = €120/year. A 2.0L diesel with 130g/km pays: €190 engine capacity + €70 CO2 = €260/year. Both subject to potential increases based on Euro norm.

Why are diesel cars taxed higher in Germany?

Germany taxes diesel cars higher due to their higher CO2 and NOX emissions compared to petrol. The diesel surcharge of €2.50 per 100cc (versus €2 for petrol) accounts for this. Diesel fuel also has lower CO2 per litre but higher real-world NOX emissions, which Germany addresses through the vehicle tax structure.

What cities in Germany have environmental bans for cars?

Several German cities have introduced environmental zones (Umweltzonen) that restrict older diesel vehicles. Stuttgart, Frankfurt, Berlin, Hamburg, and Munich have low-emission zones where vehicles must display a green sticker (Feinstaubplakette) to enter. Non-compliant vehicles face fines starting at €80.

How do I pay KFZ-Steuer in Germany?

KFZ-Steuer is collected by German customs (Zoll) and is typically bundled with the vehicle registration (Zulassung). When you register a vehicle, you set up an annual SEPA direct debit. The tax is automatically deducted each year. You can check amounts and pay via the Zoll online portal (zollertrag.de).