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.