Taxation surrounding electric driving has evolved further on several points in 2026. The common thread remains the same: the government is using tax policy to steer towards emission-free mobility, with favorable regimes for 100% electric vehicles and systematically less favorable treatment for fossil fuel and hybrid vehicles. We have outlined the main points for companies, the self-employed, and employees.

The information below provides a general overview as of mid-2026. Exact percentages, thresholds, and conditions change frequently — always have your specific case reviewed by your accountant or tax advisor.

Deductibility of company cars

For company cars ordered or leased after January 1, 2026, deduction percentages for fossil fuel and hybrid models continue to decline according to the multi-year path established in 2023. For 100% electric company cars, the deduction remains high, but here too, the percentage is systematically decreasing to achieve convergence by the end of the decade.

In concrete terms: the difference in the deductible amount between a comparable electric and plug-in hybrid company car remains substantial in 2026, with a corresponding difference in net results for the employer of several thousand euros per car per year.

Benefit in kind (BIK)

The benefit in kind for an employee with a company car is calculated based on the catalog value, a CO₂ coefficient, and an age correction. For 100% electric cars, the CO₂ percentage falls back to the legal minimum, which keeps the BIK for an employee significantly lower than for a comparable hybrid.

The legal minimum BIK is indexed annually. In 2026, it is approximately €1,600 per year for a new electric car — check the current indexation via your accountant. For a hybrid with the same catalog value, the BIK typically amounts to €3,500 to €4,500 per year, which translates into a significantly higher payroll tax for the employee.

Charging infrastructure at work

Investments in publicly or semi-publicly accessible charging infrastructure on a business site still enjoy an increased cost deduction in 2026, provided they meet the technical conditions (smart charging, OCPP, registration as a public charging point). The deduction percentage has been reduced since the reform compared to the peak years, but remains higher than for other business investments.

The condition of public accessibility is interpreted more strictly: the charging station must effectively be accessible to third parties during fixed hours and be registered in the official database. Cases that are only “public” on paper but are in practice located on closed premises will face issues during audits.

Home charging stations for employees

When an employer installs a charging station at an employee’s home for charging the company car, the station is in principle a business asset of the employer, with the corresponding tax treatment. The electricity consumption attributed to the company car may be reimbursed by the employer without this constituting a taxable benefit for the employee — provided that the measurement is auditable and the rate approximates the actual cost.

Without split billing or actual measurement, there is a real risk that a tax audit will reclassify part of the reimbursement as a taxable benefit. A correct technical setup is therefore not a luxury but a requirement.

Individuals: tax reduction for home charging stations

For individuals installing a charging station at home, a tax reduction still applies in 2026, but the percentage has decreased according to the multi-year path compared to the introductory period. The reduction is linked to conditions regarding smart charging and a green energy contract.

VAT recovery

VAT recovery on charging infrastructure follows general logic: fully recoverable for purely professional use, limited for mixed use, and not recoverable for private use. The practical implementation for a station used for both a company car and a private car requires a substantiated allocation key — typically based on actual usage measured via the station itself.

What else changes in 2026 and 2027?

  • Further decrease in deduction percentages for hybrid company cars.
  • Announcement of the federal excise duty reform, impacting the cost advantage of electric versus fossil fuel driving.
  • Introduction of ETS2 from 2027, putting further pressure on the price of fossil fuels.
  • Expected adjustment of regimes regarding home charging stations, particularly concerning measurement and accumulation with regional premiums.

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Would you like to have your tax approach for 2026 reviewed? Schedule a consultation with our advisor — together with your accountant, we will review the impact on your specific case and help you make the most tax-efficient choices.