Gross-Net Calculator with a Company Car, Germany 2026
A company car does not cost you the full taxable benefit, only the tax and social contributions on it. The benefit is 1% of the gross list price a month plus 0.03% per km of commute, or 0.25% for a pure EV up to a €100,000 list price. Enter your salary and the list price to see your net pay with and without the car, including an employee contribution, per-trip valuation or private health insurance.
Company car calculator 2026: work out your net salary
An agreed usage fee reduces the taxable benefit, down to zero at most.
Commuting to work in the company car increases the taxable benefit on top of the 1% rule. Leave empty for the flat 0.03% rule, or enter trips per month: the calculator then uses the cheaper per-trip valuation (0.002% per trip). The commuting allowance is claimed separately in your tax return.
- Private use
- €500.00
- Commute (Flat 0.03% rule)
- €300.00
- Taxable benefit
- €800.00
Net pay without and with the company car
Net cash salary after the benefit
Only the extra income tax, solidarity surcharge, church tax (if applicable) and social contributions on the benefit, not the full benefit amount.
This is the gross pay rise your employer would have to give you instead so that you end up with the same net as with the company car.
Same car, different drive type
| Drive type | Taxable benefit | Net cost |
|---|---|---|
| Combustion engine (1%) 1.00% | €800.00 | €378.16 |
| Plug-in hybrid (0.5% or 1%) 0.50% | €400.00 | €187.00 |
| Battery electric (0.25% or 0.5%) 0.25% | €200.00 | €92.91 |
Same gross list price, same commute, same tax settings. For a battery-electric car the reduced rate applies only up to the cap. A plug-in hybrid only reaches 0.5% with at least 80 km electric range or at most 50 g CO2/km, otherwise it is taxed at 1%. The rate shown follows your setting above.
Deductions in detail
- Taxable gross including the benefit
- €4,800.00
- Income tax
- −€728.66
- Pension insurance
- −€446.40
- Unemployment insurance
- −€62.40
- Health insurance
- −€420.00
- Long-term care insurance
- −€115.20
- Payroll net before deduction of the benefit
- €3,027.34
- Non-cash benefit deduction
- −€800.00
- Cash paid after all deductions
- €2,227.34
Your gross plus the employer share of social insurance. The U1 to U3 levies, accident insurance and other costs come on top for the employer; the employer cost calculator shows the full payroll cost.
The link reopens the calculator with exactly these inputs, handy for a salary negotiation or a chat with your tax adviser.
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A German company car you may also use privately is taxed at 1% of its gross list price (Bruttolistenpreis) per month in 2026, plus 0.03% per commute kilometer, with reduced rates of 0.25% or 0.5% for battery-electric cars and plug-in hybrids.
The formula
Taxable benefit per month = gross list price (rounded down to a full €100) × 1% (0.5% for a plug-in hybrid, 0.25% for a battery-electric car within the cap) plus gross list price × 0.03% × commute kilometers, with the commute component scaled by the same reduced factor.
Worked example
Example: a combustion car with a €50,000 gross list price and a 20 km commute gives €500 (1%) plus €300 (0.03% × 20 km) = €800 taxable benefit per month. That amount raises your taxable and contribution-liable gross, so the car costs you net only the extra tax and social contributions on it, not the full €800.
Key figures for 2026
| Standard case (1% rule) | 1% of the gross list price per month |
|---|---|
| Commute surcharge | 0.03% of the gross list price per commute kilometer per month |
| Battery-electric car within the cap | 0.25% |
| Battery-electric above the cap, plug-in hybrid | 0.5% |
| EV list-price cap 2026 | €100,000 for cars acquired after 30 June 2025, €70,000 from 1 January 2024 to 30 June 2025 |
| Contribution ceilings 2026 | €69,750 (health and long-term care), €101,400 (pension and unemployment) |
Figures verified:
Gross to net with a company car: three examples
A combustion car with a €50,000 gross list price and a 20 km commute adds €800 of taxable benefit a month. This is what it does to your net pay:
| Gross salary per month | Net without car | Net with car | What the car costs you net |
|---|---|---|---|
| €3,500 | €2,333 | €1,966 | €368 |
| €5,000 | €3,130 | €2,731 | €399 |
| €6,500 | €3,915 | €3,534 | €380 |
Assumptions: tax class I, North Rhine-Westphalia, no church tax, no children, statutory health insurance with a 2.9% additional contribution, 0.03% rule, no employee contribution. Run your own figures in the calculator above.
What is the taxable benefit (geldwerter Vorteil) of a company car?
The taxable benefit is the value that private use of the company car has for you. Because you receive the car instead of money, German tax law treats this benefit in kind like salary: it is added to your gross pay, income tax and social contributions are charged on it, and it is then deducted again because it is never paid out.
Example with a gross list price of €50,000 and a 20 km commute: as a combustion car that is a taxable benefit of €800 a month, as a plug-in hybrid at 0.5% €400 and as a pure EV at 0.25% €200. On a cash salary of €5,000 in tax class 1, the car costs you €399.34, €197.50 or €98.25 net a month.
Dienstwagen or Firmenwagen: is there a difference?
Not for tax purposes. Both German words mean a vehicle your employer provides. If you may also use it privately, a taxable benefit arises, and that is exactly what this calculator works out. If private use is expressly prohibited, there is generally no taxable benefit for private trips. If you may only use the car for your commute, only the commute surcharge applies.
The 1% rule or a logbook: which is cheaper?
The 1% rule is a flat rate and needs no records. With a logbook (Fahrtenbuch) you are instead taxed on the actual share of private trips in the car’s total costs. That pays off mainly if you use the car privately very little or if the list price is high relative to the actual costs.
The logbook must be kept promptly, completely and in a closed form, otherwise the tax office rejects it and applies the 1% rule. You fix the method per vehicle for the whole calendar year. This calculator models the 1% rule, it does not calculate a logbook.
How a German company car is taxed in 2026
If you can also use your company car privately, the standard method is the "1% rule": 1% of the gross list price (BLP, including VAT and optional extras, at first registration), rounded down to the nearest full 100 €, is taxed as a monthly taxable benefit (§6 para. 1 no. 4 EStG).
If you drive the company car to work, a further 0.03% of the BLP per commute kilometer per month is added (§8 para. 2 EStG). Enter your actual number of trips per month and the calculator also runs the individual valuation at 0.002% per commute kilometer and trip, then automatically takes the cheaper one. The individual valuation is capped at 180 trips a year and requires your employer to apply it in payroll, or you to claim it in your tax return.
Fully electric cars get a reduced 0.25% rate as long as the list price stays within the statutory cap; above it, and for most plug-in hybrids (subject to CO2/range conditions), 0.5% applies. The cap was raised in 2025: 100,000 € for cars acquired after 30 June 2025, 70,000 € for cars acquired between 1 January 2024 and 30 June 2025. The calculator scales the 0.03% commute component by the same factor (0.0075% or 0.015% per km).
Important: the taxable benefit increases your taxable and social-insurance-liable gross salary, but is never paid out as cash. So the company car only costs you net the extra tax and social contributions on that value, not the full taxable benefit. The calculator shows you exactly that difference.
Frequently asked questions
- How do I work out gross to net with a company car?
- In three steps. First, the taxable benefit: a €50,000 list price and a 20 km commute give €800 a month. Second, add it to your gross salary and calculate wage tax, solidarity surcharge and social contributions on the total. Third, deduct the benefit from net pay again, because it is never paid out. On €5,000 gross in tax class I that leaves €2,731 instead of €3,130 net, so the car costs you €399 a month.
- How is a company car taxed in Germany in 2026?
- 1% of the gross list price per month (the 1% rule) plus 0.03% per commute kilometer. A logbook is an alternative. As a taxable benefit, the amount is subject to income tax and social contributions (§6 para. 1 no. 4 EStG).
- What applies to EVs and hybrids?
- Fully electric cars are taxed at 0.25% of the list price as long as it stays within the cap (2026: 100,000 € for cars acquired from July 2025, 70,000 € before that from 2024). Above the cap, 0.5% applies. A plug-in hybrid only gets 0.5% if it has at least 80 km of electric range or emits at most 50 g CO2 per kilometer; if it misses that, it is taxed like a combustion car at 1%. The checkbox next to the drive type controls this in the calculator.
- What does the company car actually cost me net?
- Not the full taxable benefit, only the extra income tax, solidarity surcharge, church tax if applicable, and the extra social contributions on it. The calculator shows the net surcharge per month.
- The 0.03% rule or the 0.002% individual valuation?
- The 0.03% rule is worth it if you commute often. If you commute less, the individual valuation at 0.002% per commute kilometer and actual trip is cheaper. Enter your trips per month and the calculator compares both and takes the cheaper one. The individual valuation is capped at 180 trips a year.
- Does the taxable benefit count towards social insurance?
- Yes, up to the contribution ceiling. The calculator automatically caps at €69,750 (health/long-term care) and €101,400 (pension/unemployment) for 2026.
- What does an employee contribution achieve?
- An agreed usage fee, that is a monthly contribution you pay your employer, reduces the taxable benefit, down to zero at most (BFH VI R 2/15). You save the tax and social contributions on the reduced amount, but you pay the contribution out of your net pay. The calculator models both sides.
- What if I have private health insurance?
- Tick "Privately insured" above and enter your basic premium. The calculator then replaces the statutory health and care contributions with your own share, applies the employer subsidy under §257 SGB V and §61 SGB XI and computes wage tax through the private-insurance branch of the official PAP. The subsidy is half of your premium, capped at what your employer would pay on your contribution-liable salary under statutory cover. It therefore depends on your salary and only reaches the maximum of €613.22 a month (€584.16 in Saxony) at the contribution ceiling of €5,812.50 a month. It matters for a company car in particular, because the taxable benefit raises your contribution-liable gross while a private premium does not rise with it.
- Company car or a pay rise, which is worth more?
- The calculator shows the monthly gross rise that would leave you with the same net as the company car. If your employer offers less than that, the car is the better deal for you; if they offer more, take the rise. Insurance, servicing, fuel or charging and depreciation are not included, and with a company car the employer usually covers them.
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As of (tax year 2026) · last verified:
Scope of review: formulas and reference values were checked against the sources listed above, by the Nomado24 editorial team. What is verified is the calculation logic, not your personal situation. Not tax or legal advice.