Every car owner in Germany pays Kraftfahrzeugsteuer — vehicle tax. The amount depends on engine displacement, fuel type and CO2 emissions. Our vehicle tax calculator gives you the result instantly. This guide explains the formula behind it.
How Is German Vehicle Tax Calculated?
Since 2009, Kfz-Steuer consists of two components:
- Engine displacement component — based on engine size and fuel type
- CO2 component — based on WLTP CO2 emissions
The formula: Kfz-Steuer = Engine Component + CO2 Component
Engine Displacement Component
Engine displacement is rounded up to the next 100 ccm. The rate per 100 ccm depends on fuel type:
| Fuel Type | Rate per 100 ccm |
|---|---|
| Petrol | €2.00 |
| Diesel | €9.50 |
| Hybrid (petrol basis) | €2.00 |
Example: A petrol engine with 1,400 ccm pays 14 × €2.00 = €28.00 engine component.
A diesel with 2,000 ccm pays 20 × €9.50 = €190.00 engine component.
CO2 Component: Progressive Tier Rates
The first 95 g/km CO2 are tax-free. Beyond that, each gram is taxed progressively:
| CO2 (g/km) | Rate per gram |
|---|---|
| 0–95 | €0.00 |
| 96–115 | €2.00 |
| 116–135 | €2.20 |
| 136–155 | €2.50 |
| 156–175 | €2.90 |
| 176–195 | €3.40 |
| above 195 | €4.00 |
Example: A vehicle emitting 130 g/km CO2 pays:
- 20 g (96–115) × €2.00 = €40.00
- 15 g (116–130) × €2.20 = €33.00
- CO2 component total: €73.00
Electric Vehicles: 10-Year Tax Exemption
Pure electric vehicles are fully exempt from vehicle tax for ten years from the date of first registration. A car registered on 1 January 2022 is exempt until 31 December 2031.
After the exemption expires, petrol rates apply — including the CO2 component. Since EVs emit 0 g/km CO2, only the engine component matters. Many EVs have 0 ccm formal engine displacement, meaning the post-exemption tax may still be zero.
Worked Example: Mid-Range Petrol Car
Vehicle: VW Golf, 1,498 ccm, 120 g/km CO2, petrol, first registered 2021
- Engine component: ceil(1,498 / 100) × €2.00 = 15 × €2.00 = €30.00
- CO2 component: 20 × €2.00 + 5 × €2.20 = €40.00 + €11.00 = €51.00
- Total vehicle tax: €81.00 / year
Worked Example: Diesel SUV
Vehicle: BMW X5, 2,993 ccm, 195 g/km CO2, diesel, first registered 2022
- Engine component: ceil(2,993 / 100) × €9.50 = 30 × €9.50 = €285.00
- CO2 component: 20×€2 + 20×€2.20 + 20×€2.50 + 20×€2.90 + 20×€3.40 = €260.00
- Total vehicle tax: €545.00 / year
Vehicle Tax in Context: Other Ownership Costs
Vehicle tax is one part of total car ownership costs. When buying, you also pay VAT at 19% on the purchase price. And over time, inflation erodes the real value of your budget: our inflation calculator shows what your money will be worth in ten years.
Tips to Reduce Your Kfz-Steuer
- Stay below 96 g/km CO2: The CO2 component drops to zero entirely.
- Consider electric: Ten years tax-free can save thousands of euros.
- Watch the diesel surcharge: At €9.50 vs €2.00 per 100 ccm, a 2,000 ccm diesel pays €150 more on the engine component alone.
- Use the WLTP figure: The CO2 value in the vehicle registration document (Fahrzeugschein) is the legally relevant one — not the older NEDC value.
Calculate Your Vehicle Tax Now
Enter first registration date, engine displacement, fuel type and CO2 emissions — our vehicle tax calculator computes engine component, CO2 component and annual tax instantly.