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Company-car tax: a worked example for a €60,000 car

A worked example covering business leasing, salary sacrifice and the reduced assessment basis for an eligible electric company car.

This example models a €60,000 electric company car with business leasing and salary sacrifice. The result depends on the payment, personal tax rate, commute and any employer contribution.

Assumptions used in the example

The example uses a business lease with a leasing factor of 0.5. On a €60,000 gross list price, that gives an assumed monthly payment of €300. Actual business terms may be higher or lower.

The model assumes that the employer passes on this €300 through salary sacrifice. Your gross salary falls by that amount, while your personal tax and social-contribution position also changes.

Figures included in the calculation

  • Eligible electric car: For acquisitions after 30 June 2025, the quarter-rate assessment basis may apply up to a €100,000 gross list price.
  • Lease offer: The example assumes a leasing factor of 0.5 and a €300 monthly payment.
  • Salary sacrifice: The assumed monthly payment is deducted from gross salary.

Open the example in the calculator

The link applies the example payment, salary sacrifice, tax rate and commute.

Open example calculation

How the monthly cost is calculated

The model assumes a combined deduction of about 48% for income tax, solidarity surcharge and church tax:

Calculation (Example)Monthly
1. Salary sacrificeMatches the assumed lease payment (LF 0.5)
€300.00
Estimated tax effect (~48%)+ €144.00
Net effect of salary sacrifice€156.00
+
2. Benefit in Kind (incl. 10km commute)0.25% Rule + 0.03% per km
€195.00
Additional Tax Load (~48%)- €94.00
Modelled estimatePersonal monthly cost
approx.€250
Result
Leasing is 8.247 € cheaper
Calculate Scenario

Result of this example: The model produces an estimated personal burden of around €250 per month for the stated assumptions. Different lease payments, tax rates, commute distances or employer contributions change that result.

Which figures change the result

Combustion, hybrid and electric vehicles use different assessment bases. Compare the tax deduction and net salary-sacrifice effect with your actual conditions. Eligible electric cars with a gross list price up to €100,000 can currently qualify for the quarter-rate assessment basis.

About the author

Hi, I'm Michael. I wanted to compare leasing and buying for my own car decision using the same assumptions, including tied-up capital. My Excel model became Carculated.

Email Michael