The Federal Government seeks to successfully position Germany as an automotive centre for the future, secure jobs and achieve climate targets. One important component is the expansion of electromobility. To make the purchase of electric vehicles even more attractive, the Federal Cabinet has decided on a targeted measure: Pure electric vehicles will continue to be exempt from motor vehicle tax beyond 2025.

This means that from 2026 onward, newly registered electric vehicles will also benefit from a tax exemption of up to ten years. This is a strong message: investments in electric vehicles pay off in the long term.

Buying early pays off

The tax exemption currently applies to all-electric vehicles registered for the first time or completely converted to electric drive by the deadline of 31 December 2025. The bill extends this favourable tax treatment by five years – new cut-off date: 31 December 2030.

However, the maximum ten-year tax exemption is limited through 31 December 2035. It is therefore worth buying an all-electric vehicle early on.

Further support measures for e-mobility

The Federal Cabinet's decision supplements improvements already implemented in the area of e-mobility with regard to depreciation rules and company car taxation. 

In addition, the Federal Government is planning targeted support for households with low and medium incomes – in order to facilitate the switch to climate-friendly mobility and further promote the ramp-up of electric vehicles.