Company car tax 2027: 20 per cent for electric, what it means
Written by Ilias Aarrass5 min read · Published on · Last reviewed on 
In short
For a new fully electric car first registered in 2027, company car tax is 20 per cent on the first € 30,000 of the list price and 22 per cent above that. Petrol, diesel and hybrid stay at 22 per cent. The percentage is fixed for 60 months. With a list price of € 45,000 the taxable benefit is € 9,300 per year, € 600 more than for a 2026 car.
- Electric in 2027: 20% up to € 30,000 and 22% above; in 2026 that is 18% up to € 30,000.
- From 2028 new electric cars pay 22% on the entire list price.
- The year of first registration determines the percentage, which is fixed for 60 months.
- From 2027 employers pay a 12% levy on non-electric company cars that are also used privately.
If a new fully electric car is first registered in 2027, company car tax is 20 per cent on the first € 30,000 of the list price and 22 per cent on the part above that. In 2026 that is still 18 per cent on the first € 30,000. For petrol, diesel and hybrid the percentage does not change: it stays 22 per cent. In this article you will see what the difference is in euros and for whom the 1 January date really matters.
Company car tax in 2027 at a glance
The percentage depends on the year in which the car was first registered. That percentage is then fixed for 60 months. So if you drive a 2025 electric car in 2027, you do not pay 20 but still 17 per cent on the first € 30,000, until those 60 months are over.
| First registered | Electric up to € 30,000 | Electric above € 30,000 | Petrol, diesel, hybrid |
|---|---|---|---|
| 2025 | 17% | 22% | 22% |
| 2026 | 18% | 22% | 22% |
| 2027 | 20% | 22% | 22% |
| 2028 | 22% | 22% | 22% |
Worked example: electric in 2026, 2027 or 2028
Take an electric car with a list price of € 45,000. The low percentage applies to the first € 30,000, and 22 per cent always applies to the remaining € 15,000. That is € 3,300 per year, regardless of the year.
Annual company car tax at € 45,000 list price
- Registered in 2026: 18% x € 30,000 + € 3,300
- € 8,700
- Registered in 2027: 20% x € 30,000 + € 3,300
- € 9,300
- Registered in 2028: 22% x € 45,000
- € 9,900
Result: The difference between 2026 and 2027 is € 600 of taxable benefit per year. At a tax rate of about 38 per cent that costs roughly € 230 per year, so around € 1,150 over the full 60 months.
Is buying an electric car before 1 January smart?
Only if you already wanted that car. The date of first registration determines the percentage, so the car must really be registered before 2027. An order delivered in January already falls under 20 per cent. So ask your dealer about the delivery time before you decide.
A benefit of around € 230 per year is too small to buy a car you do not need. The bigger choice is whether the car goes in the business or stays private. If you drive many business kilometres in an inexpensive car, keeping it private at € 0.25 per kilometre can work out cheaper.
What else changes for cars in 2027?
The status differs per measure. The 20 per cent rate and the employer levy are already law. The lower house votes on the youngtimer on 12 November 2026 and the senate is expected to vote in mid-December.
- Employer levy (already law): from 2027 an employer pays 12 per cent of the list price per year on petrol, diesel and hybrid cars that are also used privately. For cars made available before 2027, the levy only starts in 2031. This also affects your private limited company if you are its director-shareholder.
- Youngtimer (proposal): the age limit for 35 per cent on the current value goes to 17 years in 2027 and 20 years in 2028.
- Road tax: electric passenger cars keep a 30 per cent discount up to and including 2028. The discount for electric vans and light lorries ends on 1 January 2027.
Company car tax as a freelancer: this works differently
As an employee or director-shareholder, company car tax runs through your payslip. If you have a sole proprietorship with the car in the business, it counts as a correction to your profit. You first deduct all car costs and then add back the private use. The amount is never higher than the costs you incurred for the car.
You must also correct VAT for private use of the car. And if you can prove you drive no more than 500 private kilometres per year, the addition disappears completely, provided you keep a watertight mileage log. More on the basics can be found in calculating company car tax.
Frequently asked questions
What is company car tax for an electric car in 2027?
20 per cent on the first € 30,000 of the list price and 22 per cent on the part above that, for cars first registered in 2027. That percentage is fixed for 60 months.
Does my company car tax change if I already drive an electric car?
No, not while the 60 months are running. You keep the percentage of the year in which the car was first registered. After that, the percentage at that time applies.
What is company car tax for petrol and hybrid in 2027?
22 per cent of the full list price, the same as in 2026. Plug-in hybrids also fall under this.
Does the € 30,000 limit also apply to hydrogen cars?
No. Hydrogen cars and cars powered by solar cells also pay 20 per cent in 2027, but on the full list price.
What is company car tax for an electric car in 2028?
New electric cars registered in 2028 pay 22 per cent on the entire list price. The discount is then over.
Sources
- 2027 Tax Plan: car taxes and mobilityAthlon · athlon.com
- Lower company car tax for electric cars in 2026 and 2027SRA · sra.nl
- Car tax and company car tax in 2027Ayvens · ayvens.com
Sources checked on
This article provides general information based on the rules known for 2026 and does not replace personal tax advice. For your specific situation, we're happy to take a look with you.
