What is the “environmental tax” (Umweltsteuer) on cars in Germany?
In Germany there is no single, official tax called “Umweltsteuer” on cars.
Instead, several taxes and regulations with an environmental impact work together:
| Component | Environmental impact | Is it a tax? | Main purpose |
|---|---|---|---|
| Kfz-Steuer (annual motor vehicle tax) | Yes | Yes | Calculated according to CO₂ emissions |
| Zulassungsbeschränkungen (environmental zones) | Yes | No (legal restriction) | Blocking highly polluting vehicles |
| VAT on fuel (Mehrwertsteuer auf Kraftstoff) | Partly | Yes | Makes fuel consumption more expensive |
| CO₂ surcharge within Kfz-Steuer | Yes | Integrated | Extra charge based on CO₂ emissions |
Every car is subject to Kfz-Steuer based on its CO₂ emissions.
The CO₂-related part starts at €2 per gram of CO₂ above 95 g/km.
The tax is calculated annually and collected by the customs authority (Zoll).
Many German cities (e.g. Berlin, Munich, Cologne) have environmental zones.
Only cars with a valid Umweltplakette (environmental sticker) may enter.
Older, high-emission vehicles (e.g. Euro 1 or Euro 2) are often restricted or banned.
This is not a tax, but a regulatory instrument to keep polluting vehicles out of city centres.
| Type of vehicle | Environmental / tax effect |
|---|---|
| Electric cars (Elektroauto) | Exempt from Kfz-Steuer (currently up to 2030) |
| Hybrid cars | Often benefit from lower tax depending on CO₂ |
| Old, polluting cars | Higher tax plus stricter environmental limits |
A modern car with CO₂ emissions of 120 g/km:
First 95 g = no tax
Remaining 25 g × €2 = €50
These €50 represent the “environmental component” within the Kfz-Steuer.
Umweltsteuer: environmental tax (generic term, not a single defined tax)
Kfz-Steuer: annual motor vehicle tax
CO₂-Ausstoß: CO₂ emissions
Umweltzone: environmental zone / low-emission zone
Umweltplakette: environmental sticker for vehicles
Elektroauto: electric car
The editorial team of our website strives to provide accurate information based on thorough research and multiple sources. Nevertheless, errors may occur or some details may not be fully confirmed. Please treat this article as an initial point of orientation and always consult the competent authorities or a professional tax advisor for binding and up-to-date information.
