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Good Tax Guide

The T&E Good Tax Guide is a yearly publication in which we analyse and compare the car taxation systems across 31 countries. With this tool you can discover which countries in Europe have the greenest tax systems.

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What is T&E’s Good Tax Guide

The T&E Good Tax Guide is a yearly publication (3rd edition) in which we analyse and compare the car taxation systems across Europe. This analysis has been reviewed by an extensive team of collaborators from each country who reviewed T&E’s data inputs on national car taxation.

The Guide looks at all taxes paid by new passenger cars in 31 countries (EU-27, UK, Switzerland, Norway and Iceland) as of April 2025. We make a distinction between cars registered by private individuals (40% of new registrations in the EU) or by companies (60% of new registrations). Based on the relevant specifications of the vehicle (price, CO2 emissions, weight, air pollutants etc.) we calculate the tax paid in each country. This allows us to calculate which countries have the greenest tax systems.


Vehicle attributes used in the tax comparisons

In order to perform the calculations, a series of illustrative examples have been used to calculate the total taxes and benefits related to the ownership and usage of the same vehicle in each country.

For this analysis, five typical vehicles are used to calculate the comparative taxes in each European country. The five vehicles cover two different fuel types for a small car (electric and petrol) and three different fuel types for a compact SUV (electric, petrol and plug-in hybrid).

The vehicle attributes do not align with any one specific vehicle model, but are an approximate average across multiple brands and models of the particular segment and fuel type.

Attribute Small car (B segment) Compact SUV (C segment)
Fuel type Electric Petrol Electric Plug-in hybrid Petrol
List price excluding VAT 22,000 17,000 38,000 36,500 33,500
WLTP (g CO2/km) 0 115 0 40 150
Engine capacity (cc) 0 999 0 1,700 1,600
Engine power (kW) 100 75 150 160 115
Weight (kg) 1,550 1,100 1,800 1,900 1,650
NOx emissions (mg/km) 0 25 0 10 35
Length (mm) 4,050 4,050 4,500 4,450 4,500
Cylinders (number) - 3 - 4 4
Electric range (km) 300 - 450 70 -
Consumption (l/100km) 5.5 5.5 7.5
Consumption (Wh/km) 160 185 190
Battery capacity (kWh) 50 0.0 75 14 0
Cylinder capacity (l) - 1.0 - 1.7 1.6

Source: approximate average across multiple brands and models of the particular segment and fuel type. Data obtained from the car manufacturers' website in the car specifications section.