Car Tax in Germany (Kfz-Steuer): Rates, Payment, Refund
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The essentials
Car tax in Germany is called Kfz-Steuer. Customs (Zoll) collects it, not the tax office, once a year in advance by SEPA direct debit. The amount depends on engine size, fuel type and, for cars first registered since 1 July 2009, CO2 emissions. The tax runs while the car is registered, for at least one month, and ends with deregistration. The advance payment is refunded, usually about three weeks later.
What is Kfz-Steuer and who collects it?
Kfz-Steuer (Kraftfahrzeugsteuer) is the annual tax for keeping a registered vehicle in Germany. It is a federal tax administered by the main customs offices (Hauptzollamt). The registration office does not collect it, and neither does your local tax office (Finanzamt).
The tax is owed by the person the car is registered to. It is due for a year in advance and collected automatically from the bank account you give in the SEPA mandate at registration.
How much is car tax in Germany?
The rate depends on the date of first registration. The figures below are the annual rates from § 9 of the Motor Vehicle Tax Act (KraftStG) for passenger cars.
| First registration | Engine size part | CO2 part |
|---|---|---|
| Up to 30 June 2009 | Per 100 cc by emission class, e.g. 6.75 € petrol / 15.44 € diesel for the cleanest class | None |
| 1 July 2009 to 31 December 2020 | 2.00 € petrol / 9.50 € diesel per 100 cc | 2.00 € per g/km above the limit (95 g/km since 2014) |
| From 1 January 2021 | 2.00 € petrol / 9.50 € diesel per 100 cc | Progressive from 2.00 € per g/km above 95 g/km |
Example: a petrol car first registered in 2018 with 1,598 cc and 130 g/km CO2 pays 16 × 2.00 € = 32 € for the engine and 35 × 2.00 € = 70 € for CO2, so 102 € a year. Every started 100 cc counts as a full 100 cc. For an exact figure, use the official calculator of the Federal Ministry of Finance.
How do you pay car tax?
- You give a SEPA direct debit mandate when you register the car. Without it, the registration office may not register the car.
- The account can belong to you or to another person, for example a family member.
- Customs then debits the tax once a year in advance. You do not need to file a tax return for it.
- If your bank account changes, tell the main customs office so the next debit does not fail.
Can unpaid car tax block a new registration?
Yes. Under § 13 (2) KraftStG the registration office may only register a car if the future keeper has no car tax arrears. Arrears of less than 5 € do not block the registration.
If someone else registers the car for you, for example a registration service, you have to give written consent that the office may tell that person about your car tax status. Without this consent the registration can be refused.
When does car tax end?
Car tax runs as long as the car is registered, but always for at least one month. It ends with the deregistration at the registration office. A car that only stands in a garage still costs tax.
When a car is taken off the road, the entry in the Zulassungsbescheinigung Teil I and the removal of the seals from the plates can happen on different days. In that case the later day counts (§ 5 (4) KraftStG).
Source: § 5 KraftStG, duration of the tax liability (gesetze-im-internet.de)
How do you get your car tax back after deregistration?
- You deregister the car at the registration office or online.
- The registration office sends the data of your tax case to customs.
- The main customs office sends a deregistration notice, as a rule about two weeks after deregistration.
- The credit is paid out, as a rule about three weeks after deregistration, to the account the tax was debited from.
You do not need to apply for the refund. It only needs a bank account that customs knows, which is the case with a SEPA mandate.
Selling the car or leaving Germany
The tax is owed by the person the car is registered to. The sales contract alone changes nothing. If you sell the car without deregistering it, your tax liability ends on the day the car is re-registered to the buyer. Until then you remain liable, so many sellers deregister the car before handing it over.
If you leave Germany, deregister the car before you go or from abroad. As long as it is registered in Germany, the tax keeps running.
How to deregister a car in Germany | How to register a car in Germany
Frequently asked questions
Who collects car tax in Germany?
The customs administration (Hauptzollamt). It is not collected by the registration office or the Finanzamt.
Do I have to apply for the car tax refund?
No. After deregistration customs refunds the credit automatically, as a rule about three weeks later, to the account it debited.
How long do I pay car tax after registering?
As long as the car is registered, but at least one month, even if you deregister it a few days later.
Deregister online and stop the car tax
We deregister your car online, without an appointment. The tax ends with the deregistration and the refund goes to your account.