Changed car taxation: overview deductibility anno 2026
by Julie Vantomme and Yonah De Waegeneer
Car taxation was thoroughly reformed a few years ago in order to steer companies more quickly towards a greener car fleet. Among other things, this implied a systematic reduction in the tax deductibility of cars that emit CO₂, based on the order or lease date. With the Law of December 18, 2025 containing various provisions, the rules have now been tinkered with again. Below you can read what this specifically means for you.
Plug-in hybrid vehicles
Purchased as of January 1, 2026
The eye-catcher undoubtedly concerns the introduction of the new tax deductibility scheme for plug-in hybrid cars purchased as of Jan. 1, 2026.
Initially, the government had announced a relaxation for plug-in hybrid cars. It was finally decided to apply this only in the personal income tax (read: only for sole proprietors/self-employed persons). This measure therefore does not apply in corporate income tax.
As of tax year 2027, three separate deduction regimes will apply, per cost type.
| Fuel costs | Electricity costs | Other car costs |
|---|---|---|
0% | According to the deduction regime of electric cars:
| Based on a 'modified' gram formula (without fuel coefficient): deduction% = 120% - (0.5% x CO2 emissions)
|
Purchased between 1 July 2023 and 31 December 2025
A new deduction system was also provided for plug-in hybrid cars purchased/leased between July 1, 2023 and Dec. 31, 2025, starting in assessment year 2027(again, only in personal income tax).
| Fuel costs | Electricity costs | Other car costs |
|---|---|---|
Gram formula: deduction% = 120% - (0.5% x CO2 emissions x fuel coefficient) | 100% | Gram formula: deduction% = 120% - (0.5% x CO2 emissions x fuel coefficient) |
Max deduction:
| Max. deduction:
|
Cars purchased before Jan. 1, 2018: minimum limit reduced
A minimum deductibility of 75% applied to cars purchased before January 1, 2018. As of tax year 2027, this minimum limit will also be phased out.
Lump-sum commuting expenses
The flat-rate amount of €0.15 per kilometer for commuting between home and work by private car will also be adjusted. From now on, this flat rate will no longer apply if the car expenses are not deductible under the general scheme. In other words: no deductible car expenses = also no commuting lump sum.
Stricter definition false plug-in hybrids
In addition, the legislature(both in personal and corporate income tax) has adjusted the definition of a fake plug-in hybrid car to take into account the new Euro 6ebis standard.
More specifically, a plug-in hybrid car withCO2 emissions according to the Euro 6ebis standard (or a later standard) is considered a false plug-in if:
the electric battery is less than 0.5 kWh per 100 kg car weight, or
the CO₂ emissions exceed 75 g/km (previously it was 50 g/km).
Purchase new car in 2026: what do you need to be sure of?
In corporate taxation, the rules are clear:
Only completely emission-free cars are still 100% deductible.
That percentage will be systematically reduced in the coming years.
Concretely:
Electric car ordered in 2026 → 100% deductible
Purchased in 2027 → 95% deductible
Then further decrease
In contrast, fuel cars and plug-in hybrids (PHEV cars) purchased from Jan. 1, 2026, are no longer eligible for a corporate tax deduction.
In personal income tax, however, plug-in hybrids purchased/leased before 2030 can still enjoy a tax deduction.
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Julie Vantomme
Manager Tax julie.vantomme@vdl.be
Yonah De Waegeneer
Advisor Tax yonah.dewaegeneer@vdl.be
Disclaimer
In our opinions, we rely on current legislation, interpretations and legal doctrine. This does not prevent the administration from disputing them or from changing existing interpretations.
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