KfzSteuer

KfzSteuer, short for Kraftfahrzeugsteuer, is Germany’s annual tax on motor vehicles. The tax applies to most passenger cars, motorcycles, vans, trucks and trailers registered in Germany. It is collected by the German customs administration (Zoll) under the Kraftfahrzeugsteuergesetz (KfzStG).

Basis for the tax: The amount depends on vehicle characteristics recorded at registration. The main variables include engine displacement (cubic centimeters), fuel type, CO2 emissions, and the vehicle’s date of first registration. Since reforms in the 2000s, CO2 emissions have played a central role, complementing the traditional charge based on engine size and weight.

Calculation and payment: The tax is calculated from the data in the vehicle registration and the applicable legislation. It is typically charged annually, with options for monthly payment by direct debit in some cases. If vehicle data changes (for example, due to modification or re-registration), the tax can be recalculated.

Exemptions and reductions: The law provides exemptions or reductions for some categories, such as historic vehicles meeting criteria for the status of an oldtimer and certain low- or zero-emission vehicles under current policy. Rules are subject to change and are administered by the Zoll.

History and purpose: The KfzSteuer has evolved over time to reflect fiscal and environmental policy goals. The present framework aims to align vehicle taxation with emissions and other sustainability objectives while providing stable revenue for the state.