Electricity flat rate 2026: 34 cents per kWh for company EVs in Germany

Germany's electricity flat rate (Strompreispauschale) for 2026 is 34 cents per kilowatt hour. Employers can use it to reimburse the electricity employees use to charge their company EV at home as a tax-free expense allowance – provided the charged energy is measured by a separate meter. The previous monthly lump sums no longer apply from 1 January 2026.

The rules are set out in the Federal Ministry of Finance (BMF) circular of 11 November 2025. This article explains how the flat rate is calculated, which records you need and what is known about the 2027 value so far.

What is the electricity flat rate?

The flat rate is a simplified electricity price used to value the kilowatt hours charged for a company car. Instead of checking each employee's electricity contract, you multiply the measured energy by a fixed amount per kWh. The BMF allows this method from 1 January 2026 to 31 December 2030.

The value is based on the average household electricity price published twice a year by the Federal Statistical Office (Destatis, table 61243-0001). The relevant figure is the price including taxes, levies and surcharges for annual consumption of 5,000 to under 15,000 kWh in the first half of the previous year, rounded down to full cents.

What is the electricity flat rate for 2026?

For 2026, the relevant Destatis figure for the first half of 2025 is 34.36 cents. Rounded down, that gives 34 cents per measured kWh. The BMF circular includes an example: if an employee charges 3,000 kWh at home in 2026, the tax-free reimbursement is at most EUR 1,020 (3,000 kWh × EUR 0.34).

What will the flat rate be in 2027?

The 2027 value has not yet been officially announced. Under the BMF method, it is derived from the Destatis price for the first half of 2026, which Destatis published on 30 September 2026. Based on that data, the calculated value for the 5,000 to under 15,000 kWh band is 32 cents.

Please note: the BMF has not confirmed a 2027 figure (as of 20 October 2026). Treat 32 cents as provisional, check the GENESIS table 61243-0001 before your first payroll run in January 2027 and have your payroll team confirm the value.

Who does the flat rate apply to?

Tax-free reimbursement applies to company electric and plug-in hybrid vehicles that employees may also use privately. Reimbursing electricity they paid for themselves then counts as a tax-free expense allowance under section 3 no. 50 of the German Income Tax Act (EStG).

Employees' private EVs are different: according to the BMF, reimbursing home charging costs for private cars is taxable salary. The flat rate is therefore not a general subsidy for every EV in your team, but a valuation method for company cars.

Which records do you need?

No measured energy, no reimbursement – this applies to actual costs and to the flat rate. The BMF requires a separate fixed or mobile meter, for example in the wall charger or in the vehicle.

• Energy: separately measured kWh per company car and billing period

• Assignment: which session belongs to which vehicle and employee

• Method: actual costs or flat rate, applied consistently for the whole calendar year

• For actual costs: the employee's electricity contract; a self-issued receipt is not accepted

• Public charging: separate receipts, which can be reimbursed in addition

Flat rate or actual costs: which is better?

Each calendar year you choose between the contract price and the flat rate, and the choice applies for the whole year. The flat rate covers all home charging electricity costs – including dynamic tariffs and private solar systems.

If an employee's contract price is well above the flat rate, actual costs may be fairer but create more checking work. Many companies define the method in their company car policy – see our article on car policy rules for home charging.

What changed compared with 2025?

Until the end of 2025, employers could pay monthly lump sums without a separate meter. According to the BMF, these apply for the last time to pay periods ending before 1 January 2026. Since then, every reimbursement needs measured energy. If you still pay old lump sums, review your process now.

How to implement the flat rate

• Decide for 2026 whether you use the flat rate or actual costs and document it.

• Make sure every company car is measured at home by a separate meter.

• Assign sessions clearly to vehicle and employee.

• Bill monthly or quarterly and pass the records to payroll.

• Check the new annual value in January before the first billing run of the year.

How StromNow supports home charging billing

With StromNow Home Charging you connect suitable vehicles or wall chargers and record home charging sessions. Records are based on the recorded sessions and the employee's stored electricity tariff, and you receive them by email and in the dashboard. Home charging billing is included in the StromNow Fleet package. Your company pays employees through its chosen process – StromNow does not make the payment itself.

Want to see what the records for your payroll team look like? In a 20-minute demo we walk through the process with your charging setup.

Book a home charging billing demo

Sources and further information

As of 20 October 2026. This article provides general information and is not tax advice. The cover image is an AI-generated illustrative image.

BMF circular of 11 November 2025 (German)

Destatis press release no. 345 of 30 September 2026 (German)

Destatis GENESIS table 61243-0001

Section 3 EStG on gesetze-im-internet.de (German)

StromNow: home charging for company cars