Tax benefits & incentives
Discover your EV tax benefits and other incentives to switch to electric driving
Vehicle tax brackets
*country specific information, see this example from Denmark (it need’s localisation)*
The vehicle’s taxable value will be calculated based on the vehicle’s steel price including VAT and potentially the battery exemption. Other deductions and supplements have been removed. Steel price is the vehicle’s price before VAT and taxes.
The taxable value is calculated using three steps:
- 25 % taxation up to 65.000 DKK incl. VAT
- 85 % taxation from 65.000 - 202.200 DKK incl. VAT
- 150 % taxation over 202.200 DKK incl. VAT
Registration tax and CO2 surcharge
The new taxes are designed to have more people choose cars with low CO2 emissions. All cars, except electric cars, are subject to a CO2 surcharge based on CO2 consumption while driving. For petrol and diesel cars with high CO2 emissions, CO2 surcharge will make the car more expensive.
For plug-in hybrid cars, it can go both ways. The key figure is 50 grams of CO2 per kilometer. If your plug-in hybrid car is placed below this limit, it will be cheaper. Above this limit, the 50,000 DKK exemption no longer applies making the car more expensive.
All cars are assigned a basic deduction of 21.700 DKK. This is indexed accordingly to the personal income tax act §20.
For low emission cars (plug-in hybrids) For low emission cars, there is a basic deduction of an additional 50.000 DKK. This amount decreases by 1.250 DKK per year until 2025 and by 2.000 DKK per year until 2030. Hence, the extra basic deduction for low emission cars is 45.000 DKK in 2025 and 35.000 DKK in 2030.
For zero emission cars (100 % electric) For zero emission cars, there is a basic deduction of an additional 144,188 DKK. This deduction have a maximum of 170,000 DKK. The amount decreases by 2.500 DKK per year until 2025 and by 4.600 DKK per year until 2030. Hence, the extra basic deduction for zero emission cars is 160.000 DKK in 2025 and 137.000 DKK in 2030.