Tax changes for electric vehicles, effective as of 1 April 2025
On 1 April 2025, a significant change for owners of electric vehicles will come into effect in Austria. The Austrian Budget Stabilisation Measures Act 2025 (BSMG 2025) introduces an engine-related insurance tax, applicable to all motor vehicles registered in Austria with a maximum permissible weight of up to 3.5 tons. This provision applies not only to new purchases but also to vehicles that are already registered.
100% electric vehicles
Up to now, vehicles with 0 g/km CO2 emissions were exempt from the engine-related insurance tax, however, this exemption has been removed with the BSMG 2025. This means that purely electric vehicles with 0 g/km CO2 emissions are now also subject to insurance tax. The engine-related insurance tax is directly linked to the existence of a civil liability insurance for motor vehicles, and it will now be levied jointly with this insurance.
The calculation of the engine-related insurance tax for electric passenger cars is based (similar to cars with combustion engines) on both a power component and an empty weight component. Regarding the power component, the decisive factor is now the vehicle’s engine power. It is not the maximum power but the rated continuous power according to the registration certificate that serves as the basis. Due to the lack of CO2 emissions from the electric passenger car, the vehicle’s empty weight (rather than the maximum permissible gross weight) is the decisive factor as the second component for the insurance tax amount.
For electric motorcycles, the insurance tax calculation is based solely on the power component, with the rated continuous power being relevant.
Plug-in-hybrid
Additionally, the BSMG 2025 introduced adjustments for plug-in-hybrid vehicles concerning the engine-related insurance tax. For plug-in-hybrid vehicles, the tax continues to be based on engine power and CO₂ emissions according to their registration, with the year of first registration being crucial for the application of deduction values. However, new CO2 deduction amounts are now applicable for vehicles registered after 30 September 2020. These deduction amounts decrease annually, thereby increasing the tax burden.
Exceptions
The BSMG 2025 also sets out exemptions for the engine-related insurance tax. Exemptions apply to certain vehicle categories, including military vehicles, emergency vehicles, and vehicles for disabled people, as well as mopeds (with a maximum of 4 kW).
For questions about your individual tax burden or specific vehicle variants, the People&Organisation team is happy to assist you.
