Electric vehicles are no longer a niche product. The range of available models is expanding rapidly – including among German manufacturers. This means employees no longer need to switch brands to drive electric: their familiar models are now available with zero-emission powertrains. Whether SUV, sedan, or station wagon, there’s an electric option for almost every need. That’s good news not only for the environment and company image but also for employers and employees who can both benefit from significant tax advantages.
Governments continue to promote the shift to electric mobility with favorable tax rules. Since 2020, the taxable benefit for private use of an electric company car has been drastically reduced compared with combustion vehicles.
As of January 1, 2024, the taxable value for electric vehicles with a gross list price up to €70,000 is only 0.25%. With the coalition agreement of April 2025, this threshold increased to €100,000. In addition, the vehicle tax exemption for electric cars – originally valid until 2030 – has been extended to 2035.
Vehicles exceeding the €100,000 limit fall under the 0.5% rule. Plug-in hybrids also benefit from the 0.5% rate if they meet legal requirements for electric range (min. 80 km) or CO₂ emissions (below 50 g/km). Conventional combustion engines remain taxed at 1%.
What this means for employers:
A fully electric company car can save employees several thousand euros in taxes each year – a valuable benefit that costs the company nothing extra.
The financial advantages don’t stop at taxation. Electric vehicles are also cheaper to run. Maintenance and energy costs are significantly lower:
Over their full life cycle, many EVs are more cost-effective than combustion vehicles.
Charging is another advantage. Employees can charge their company cars conveniently at home, which is not only more comfortable than public charging or refueling but also substantially cheaper.
Lower operating costs mean savings for both sides: companies reduce fleet expenses, and employees keep more of their income.
Germany’s charging infrastructure continues to grow, with more public stations and ultra-fast chargers enabling 300–400 km range in just 20 minutes.
Yet over 70% of charging still happens at home – for good reason. It’s more convenient, faster, and more affordable.
However, this convenience brings complexity for HR and fleet teams:
How can companies fairly reimburse home charging costs? How is usage documented and tax-compliant?
In most companies, this is still done manually. Employees send Excel sheets, meter photos, or energy bill screenshots – and HR must verify each one. The result: administrative effort, errors, and frustration.
NAVIT’s Home Charging Solution automates and digitalizes the entire process.
Electricity costs from home charging are reimbursed directly, automatically, and in full compliance with payroll and tax rules – without receipts, spreadsheets, or manual checks.
HR and fleet teams save time, while employees enjoy a seamless and transparent solution.
Electric company cars are more than an economic decision – they send a clear signal.
Sustainability has become a key factor in employer branding and corporate reputation. Companies that adopt electric fleets show responsibility, innovation, and readiness for future ESG reporting requirements.
Combined with a mobility budget, employers can offer even more flexibility: employees can choose between an electric car, public transport, bike leasing, or shared mobility options.
This approach reduces emissions, increases flexibility, and makes your organization more attractive to both existing staff and future hires.
Switching to electric company cars isn’t just a sustainable move – it’s a strategic advantage. Lower taxes, reduced operating costs, and modern image all make e-mobility a win for employers and employees alike.
