'Kfz-Steuer in Germany: How Car Tax Is Calculated, When It’s Due, and

Kraftfahrzeugsteuer, or Kfz-Steuer, is the German vehicle tax on registered vehicles. For passenger cars, the amount usually depends on the date of first registration, engine displacement, fuel type, and CO2 emissions. The tax is administered not by the Finanzamt, but by Zoll, i.e., German customs.

When Is Vehicle Tax Due?

Kfz-Steuer applies when a car is registered in Germany and approved for use on public roads. If one person owns multiple cars, the tax is calculated separately for each vehicle.

Special attention is needed for those who have moved to Germany with a car bearing foreign license plates. A short-term stay and temporary importation are not the same as the permanent use of a car after transferring one’s habitual residence to Germany. If the car has a regular parking spot in Germany, you usually need to register it in Germany and comply with German tax regulations.

If a car is imported from outside the EU, customs clearance and a vehicle inspection are often required before registration. The procedure for this process is explained in detail in the article on importing a car into Germany.

For Ausfuhrkennzeichen (export license plates), the tax may also be assessed for the duration of these plates’ validity. Therefore, a letter from Zoll after purchasing a car “for export” does not always indicate an error.

What Determines the Amount of Kfz-Steuer

The main determining factor is the vehicle’s first registration. When importing a used car, it is the initial registration that matters—not the date the vehicle first received German license plates. For example, a 2007 car does not become a 2026 model for tax purposes when it is registered in Germany.

Initial registration of a passenger car	How the tax is typically calculated
Before November 5, 2008	Based on engine displacement and emissions class (i.e., Euro emissions standard).
Nov. 5, 2008–June 30, 2009	A transitional rule applies: the more favorable option between the old and new systems is taken into account.
July 1, 2009–December 31, 2020	Based on engine displacement and CO2 emissions, but without the progressive scale that has been in effect for new registrations since 2021.
As of January 1, 2021	Based on engine displacement and a progressive surcharge for CO2 emissions above 95 g/km.

For passenger cars first registered in 2021 or later, the base rate is 2 euros for every 100 cm³ or fraction thereof for gasoline engines and 9.50 euros for diesel engines. A CO₂ component is then added if the official emission rating exceeds 95 g/km.

CO2 range for first registration starting in 2021	Rate per gram within this range
Over 95 to 115 g/km	2.00 euros
Over 115 to 135 g/km	2.20 euros
Over 135 to 155 g/km	2.50 euros
Over 155 to 175 g/km	2.90 euros
Over 175 to 195 g/km	3.90 euros
Over 195 g/km	4.00 euros

Due to the base rate, a diesel car with the same engine displacement is usually more expensive than a gasoline-powered car. For example, with a displacement of 1,400 cm³ and CO₂ emissions of up to 95 g/km, the base annual tax is 28 euros for a gasoline-powered car and 133 euros for a diesel car.

Hybrids, plug-in hybrids, LPG, and CNG vehicles do not automatically qualify for a separate Kfz-Steuer exemption. They are assessed according to the general rules for the respective vehicle type. Savings are possible only if the registration documents specify a low official CO2 emission rating.

It’s best to check the final amount using the official Kfz-Steuer calculator from the German Ministry of Finance. To calculate it, you’ll need data from and your vehicle’s registration documents: date of first registration, engine displacement, and CO2 emissions.

Electric Vehicles and Kfz-Steuer Exemptions

A separate exemption applies to fully electric vehicles. If such a vehicle is first registered by December 31, 2030, it is exempt from Kfz-Steuer for up to ten years, but no longer than until December 31, 2035. After the exemption period ends, the tax for such vehicles is reduced to 50% of the standard rate.

Hybrids and plug-in hybrids are not eligible for this exemption, even if they can run on electricity for part of the journey.

Why the tax differs for similar cars

Two cars of the same model may be subject to different Kfz-Steuer rates due to their date of first registration, engine type, engine displacement, emissions class, and CO2 measurement methodology. For newer cars, the WLTP—a more realistic procedure for measuring fuel consumption and emissions—is often used in documentation, which can result in CO2 figures that are higher than previous values calculated using older methods.

If the amount on your Kraftfahrzeugsteuerbescheid differs from what you expected, first check the information in your vehicle registration documents. Zoll usually takes the specifications from the vehicle’s official documents rather than calculating CO2 emissions arbitrarily.

How and When the Tax Is Charged

When registering a car at the Zulassungsstelle, the owner usually fills out a SEPA direct debit authorization—permission for the automatic deduction of Kfz-Steuer. After that, Zoll sends a Kraftfahrzeugsteuerbescheid: a notice stating the amount, the deduction date, and payment details.

The tax is usually paid 12 months in advance. If the amount is high, a different payment period may apply, but the terms and any possible surcharge are specified in the notice. For seasonal license plates, the tax is calculated only for the months during which the registration is valid.

A manual payment made without coordination with Zoll may not replace the automatic deduction. If the payment was not processed correctly, the issue is resolved through the zuständiges Hauptzollamt—the main customs office specified in the notice.

After moving within Germany, it’s important to update your address on your vehicle registration documents and provide the current information to the relevant authorities. When a vehicle is deregistered or re-registered under a new owner, the tax is usually recalculated automatically, and any overpayment is refunded.

A sale under a contract does not always automatically close the tax record. For Zoll, the important date is when the vehicle is officially deregistered or registered to a new owner.

Exemptions for People with Disabilities

For vehicles registered to individuals with severe disabilities, § 3a of the KraftStG provides for a full exemption or a 50% reduction in Kfz-Steuer. The exemption is granted only upon application and usually applies to a single vehicle.

Full exemption is possible if the German Schwerbehindertenausweis (disability ID) contains the appropriate markings, such as H, Bl, or aG. In other cases involving limited mobility, a 50 percent reduction may apply instead of free public transportation. The specific entitlement depends on the markings on the ID and the selected exemption option.

An example of a registration certificate with the codes “aG” and “H,” which may qualify for an exemption from Kfz-Steuer.

Exemptions are subject to restrictions on vehicle use: the car must be used for the personal needs of the person for whom the exemption or reduction was granted. If the car is consistently used for other people’s personal trips, the exemption may be revoked and the tax recalculated.

Foreign License Plates, Temporary Importation, and Students

A car with foreign license plates may be exempt from the German vehicle tax when used temporarily in Germany, but this is not a blanket permission to drive without registration after moving to Germany. As soon as the car is actually used from Germany as its permanent location, the tax and registration implications must be checked on a case-by-case basis.

For students from another EU country, special rules apply if the car is registered in the student’s home country and is used in connection with their studies. This situation requires a careful review of the conditions, as tax, registration, and insurance may be assessed differently.

What Happens If You Don’t Pay the Kfz-Steuer

If there are insufficient funds in the account on the due date or if an incorrect IBAN is listed on the SEPA direct debit authorization, Zoll will send a reminder and demand payment of the outstanding balance. Until the debt is settled, you may encounter problems registering your next vehicle.

In the event of long-term nonpayment, stricter measures may be taken, including the forced deregistration of the vehicle. After that, the vehicle cannot be used on the road as a normally registered vehicle, and additional costs may include administrative fees, towing, impoundment, and re-registration.

For cars with foreign license plates, the risk isn’t limited to a letter from Zoll: the tax may be assessed retroactively, and in cases of serious violations, the dispute may escalate to administrative or judicial proceedings.

What Car Owners Should Check

• The vehicle’s initial registration, engine displacement, and CO2 emissions as listed in the documents.
• A valid IBAN and a current SEPA direct debit authorization.
• The address to which Zoll and the Zulassungsstelle send letters.
• The date of deregistration or re-registration following a sale.
• Eligibility for an exemption for electric vehicles or individuals with a severe disability.
• Use the official Kfz-Steuer-Rechner calculator if you’re unsure of the amount.