New electric car subsidy from 2026
After the environmental bonus expired at the end of 2023, there was no direct government purchase premium for electric cars in 2024 and 2025.
Many clients were therefore faced with the question of whether switching to electric mobility still made financial sense. This has since changed: A new, socially tiered electric car subsidy was introduced for private individuals starting in 2026. Businesses, on the other hand, continue to benefit, in particular, from tax breaks and extended depreciation allowances for company electric vehicles.
From 2026 onwards, pure electric vehicles as well as certain plug-in hybrids and vehicles with range extenders will be subsidized.
The amount depends on the taxable household income and the number of children:
Household income (annual): Up to €45,000 + 2 children
Bonus for purely electric cars: €6,000
Bonus for plug-in hybrids: €4,500
Household income (annual): Up to €45,000
Bonus for purely electric cars: €5,000
Bonus for plug-in hybrids: €4,000
Household income (annual): Up to €60,000
Bonus for purely electric cars: €4,000
Bonus for plug-in hybrids: €3,500
Household income (annual): Up to €80,000 (up to €90,000 with 2 children)
Bonus for purely electric cars: €3,000 (basic subsidy)
Bonus for plug-in hybrids: €1,500
The subsidy increases by €500 per child, up to a maximum of €1,000.
Key requirements at a glance
- New registration required from 1 January 2026
Applications can be submitted online to the Federal Office for Economic Affairs and Export Control (BAFA) since May 19, 2026.
- Eligible vehicles must be kept for at least 3 years
- For plug-in hybrids: Max. 60 g CO₂/km or at least 80 km electric range
- Used cars are not eligible for funding.
- Required: Federal ID account, two recent income tax assessments
Promotion of electric vehicles as company assets
Instead of the general electric car subsidy, company buyers benefit in particular from the following regulations:
- When purchasing a purely electric vehicle between July 1, 2025, and December 31, 2027, 75% of the purchase price can be depreciated in the year of purchase. The remaining 25% of the purchase price is depreciated in subsequent years according to legally defined percentages.
- Vehicle tax exemption for purely electric cars until the end of 2035.
- Company car taxation: Raising the price limit to €100,000 for the 0.25% rule for electric vehicles.
The new electric vehicle subsidy program will once again provide significant financial incentives for switching to electric mobility starting in 2026. Depending on income and the number of eligible children, private individuals can receive subsidies of up to €6,000. Businesses will continue to benefit, in particular, from the tax breaks and extended depreciation allowances for electric vehicles.
We will gladly check the funding requirements and the tax implications for you in your individual case.
Note: The above information has been compiled to the best of our knowledge and is for general information purposes only. It does not replace individual tax or legal advice. The applicable legal regulations and the circumstances of each individual case are decisive.