Car Tax in Austria: Kfz-Steuer and Motorbezogene Versicherungssteuer Guide 2026

Car Tax in Austria: Kfz-Steuer and Motorbezogene Versicherungssteuer Guide 2026 Car tax in Austria (Kfz-Steuer) explained: how motor vehicle tax is calculated, rates for petrol, diesel and electric cars, exemptions, payment methods, and money-saving tips. Topics: Work, Salary & Taxes, Transport.

Owning a car in Austria is expensive, and car tax (Kfz-Steuer) makes up a significant chunk of the running costs. Unlike countries where you pay vehicle tax directly to the tax office, in Austria for most cars the tax is embedded in your insurance premium — it is called Motorbezogene Versicherungssteuer (motor-related insurance tax). Many drivers do not even realise how much they are paying because they see one lump sum in their policy.

This guide covers everything you need to know about car tax in Austria in 2026: how it is calculated, what rates apply to petrol, diesel, and electric vehicles, who is exempt, how to pay, and how to legally reduce your bill. The information is based on data from the Austrian Ministry of Finance (BMF) and the Austrian automobile club ÖAMTC.

What Is the Car Tax in Austria?

In Austria, Kfz-Steuer and Motorbezogene Versicherungssteuer are essentially the same thing for passenger cars up to 3.5 tonnes. It is a tax on vehicle ownership levied monthly. Since 1993, the old Kfz-Steuer (based on engine displacement) has been replaced by the Motorbezogene Versicherungssteuer — a tax tied to engine power and CO₂ emissions.

The key difference from many EU countries is that the insurance company collects the tax, not the tax office. You pay it as part of your mandatory third-party liability insurance (Kfz-Haftpflichtversicherung). Your policy shows one total figure, but it contains three components: the net insurance premium, the general insurance tax (11 %), and the motor vehicle tax itself.

For trucks over 3.5 tonnes, a separate Kraftfahrzeugsteuer (motor vehicle tax) applies, paid directly to the Finanzamt (tax office). We cover that as well.

How Car Tax Is Calculated in Austria

The calculation formula depends on the date of first registration of the vehicle. Since October 1, 2020, a new, more eco-friendly approach has been in place:

For cars registered after September 30, 2020 (petrol/diesel/hybrid):

Formula: [(engine power in kW − kW allowance) × 0.72 + (CO₂ in g/km − CO₂ allowance) × 0.72] € per month

The allowances decrease every year to encourage the purchase of more efficient cars. In 2026, the allowances are:

• kW allowance: 59 kW
• CO₂ allowance: 97 g/km

So if you drive a car with 100 kW and CO₂ emissions of 120 g/km, the calculation is:

• (100 − 59) × 0.72 = 29.52 €
• (120 − 97) × 0.72 = 16.56 €
• Total: 46.08 € per month × 12 = 552.96 € per year

The tax allowances decrease annually. In 2020, the kW allowance was 65 kW; by 2026 it has dropped to 59 kW. This means the same car is taxed slightly more each year — an incentive to switch to a less powerful and cleaner vehicle.

— BMF Analysis, 2026

For cars registered before October 1, 2020:

The old power-only formula applies: (kW − 24) × 0.682 € per month. CO₂ is not factored in. For vehicles registered between 2016 and September 2020, a transitional formula is used: (kW − 65) × 0.68 + (g/km − 115) × 0.68.

Tax Rates for Newer Cars

Since 2023, a progressive rate scale applies to the power component for vehicles first registered from January 1, 2023:

Power bracket	Rate per kW per month
First 24 kW	0 € (free)
Next 66 kW (up to 90 kW)	0.65 €
Next 20 kW (up to 110 kW)	0.70 €
Above 110 kW	0.79 €

Plus the CO₂ component: (CO₂ in g/km − 97) × 0.72 € per month.

Example for a typical family car (VW Golf 2.0 TDI, 110 kW, 130 g/km):

• 24 kW × 0 = 0 €
• 66 kW × 0.65 = 42.90 €
• 20 kW × 0.70 = 14.00 €
• CO₂: (130 − 97) × 0.72 = 23.76 €
• Monthly total: 80.66 € → annual amount: 967.92 €

The tax has a minimum of 6.50 € per month (even for very weak cars) and a maximum cap of 76 € per month for passenger cars.

Motorbezogene Versicherungssteuer: Breakdown

Many people confuse Kfz-Steuer and Motorbezogene Versicherungssteuer, but for passenger cars they are synonyms. Formally, the Versicherungssteuergesetz (VersStG — Insurance Tax Act) governs this levy, and the tax is collected with the insurance premium.

Key things to understand:

• Tax collector: your insurance company. You do not pay a separate bill to the Finanzamt (except for vehicles over 3.5 t).
• Period: the tax is charged for each month the insurance policy is active. You pay it within your insurance premium: monthly, quarterly, semi-annually, or annually.
• Instalment surcharges: monthly payment adds +10 %, quarterly +8 %, semi-annual +6 %. The cheapest option is paying once a year.
• General insurance tax: 11 % of the net insurance premium — separate from the Motorbezogene Steuer.

According to Durchblicker.at, a typical Austrian household pays between 300 and 1,200 € per year in Motorbezogene Versicherungssteuer alone, on top of the actual insurance premium.

Tax on Electric Cars: What Changed in 2025

Until April 1, 2025, electric vehicles in Austria were fully exempt from Motorbezogene Versicherungssteuer. That was one of the main perks of owning an E-Auto. However, the government ended this exemption to boost tax revenue, arguing that EVs also use the road infrastructure.

Since April 1, 2025, the car tax for electric vehicles is calculated using a new formula based on Nenndauerleistung (continuous rated power) and kerb weight:

Formula for E-Cars (from April 2025):

• kW component: (kW − 5) × 0.50 € per month (minimum 2 €)
• Weight component: progressive scale based on kerb weight

Example for a Tesla Model 3 (208 kW continuous power, 1,844 kg):

• kW: (208 − 5) × 0.50 = 101.50 € per month
• Weight: approximately 30 € per month
• Total: ~131.50 € per month × 12 = ~1,578 € per year

The ÖAMTC opposed the removal of this exemption, but the government went ahead with the change from April 2025.

Who Is Exempt from Car Tax

Although the EV exemption has been significantly reduced, the following vehicles remain fully exempt from Motorbezogene Versicherungssteuer:

• E-scooters and E-mopeds with power up to 4 kW
• Wheelchairs and special vehicles for people with disabilities
• Classic cars (Oldtimer) with official historic status
• Tractors and agricultural machinery used in farming
• Diplomatic vehicles and cars of international organisations
• Police, fire brigade, and ambulance vehicles

Partial exemptions also exist: for instance, if your car is registered in Austria but used exclusively abroad, you can apply for a tax waiver.

How to Pay: via Insurance or Directly

In 90 % of cases, paying car tax in Austria happens automatically through your insurance company. You choose a payment schedule when signing up for Kfz-Haftpflichtversicherung (mandatory liability insurance), and the insurance company includes the Motorbezogene Versicherungssteuer in each invoice.

The exception is vehicles weighing over 3.5 tonnes. They fall under a separate Kraftfahrzeugsteuer, paid directly to the Finanzamt:

• Form Kfz 4 — registration for tax purposes
• Payments — quarterly (February 15, May 15, August 15, November 15)
• Rate — from 0.654 € to 1.654 € per 1,000 kg of gross vehicle weight per month

Owners of such vehicles receive a tax assessment notice from the Finanzamt with a QR code for payment.

What Happens If You Don’t Pay Car Tax

Late or non-payment of vehicle tax in Austria carries serious consequences:

1. Reminder from the insurance company — if you miss a payment (which includes the tax), the insurer sends a Mahnung (reminder).
2. Policy cancellation — after 1 month without payment, the insurance is cancelled. Critically, the Finanzamt is not notified in advance of the cancellation.
3. Back-tax assessment from Finanzamt — if the insurance lapses due to non-payment, the tax office can retroactively assess the tax for the entire uninsured period plus penalties.
4. Registration revocation (Stilllegung) — insurance is mandatory for registration. Without it, your licence plates are invalidated and you cannot drive.
5. Legal enforcement — for repeated violations, the Finanzamt can garnish wages or seize funds directly from your bank account.

According to Finanz.at, forced collection of vehicle tax is not uncommon, and the tax office has broad powers to recover debts.

Motorcycle Tax in Austria

Motorcycles have a simplified calculation. If your bike is registered in Austria, the Motorbezogene Versicherungssteuer is calculated on power alone:

(kW − 52) × 0.55 € per month

Minimum rate: 6.50 € per month, maximum: 76 € per month.

Example for a BMW R 1250 GS (100 kW):

• (100 − 52) × 0.55 = 26.40 € per month
• × 12 = 316.80 € per year

From April 2025, electric motorcycles are also taxed, with a power-only formula (no weight component). E-mopeds (up to 4 kW) remain exempt.

How to Save on Car Tax in Austria

There are several legal ways to reduce your Motorbezogene Versicherungssteuer:

Choose a car with lower power and emissions. The tax depends directly on kW and CO₂. The difference between 100 kW and 150 kW can be 300–500 € per year.

Pay annually. The +10 % surcharge for monthly instalments is pure waste. By choosing an annual payment, you keep that money in your pocket.

Use seasonal plates. For motorcycles, convertibles, or summer cars, you can get a Saisonkennzeichen and pay tax only for the months the vehicle is active.

Double-check the calculation. Errors in registration documents (power, CO₂, registration date) do happen. Compare the figures with your Zulassungsschein (vehicle registration certificate). If you spot a mistake, contact your insurance company.

Shop around for insurance. While the tax rate is fixed by law, the general insurance tax (11 % of premium) drops together with the insurance premium. As Durchblicker notes, the price difference between insurers can be up to 40 %.

When moving to Austria — use foreign plates during your first year. For up to one year after registration (Anmeldung), you can drive on foreign plates without paying Austrian car tax. But do not delay — illegal use of foreign plates carries heavy fines.

Frequently Asked Questions

Is Austrian car tax cheaper than German car tax?

German Kfz-Steuer is generally lower for older small-engine cars but higher for diesels. Austria’s system is more “green” — powerful cars pay significantly more. For a mid-range family car, Austria tends to be pricier.

Do I pay car tax on a brand-new car?

Yes. The tax starts accruing from the moment the insurance policy begins (which is required for registration). The first month may be calculated pro rata.

Are hybrids exempt from car tax?

No, but hybrids pay less because the tax is calculated only on the combustion engine’s power — the electric motor is not counted. However, as of 2025, plug-in hybrids (PHEVs) have also started losing some advantages.

Kfz-Steuer vs motorbezogene Versicherungssteuer — what is the difference?

For passenger cars, they are the same thing. Strictly speaking, Kfz-Steuer as a separate levy was abolished in 1993, but the term remains in everyday use. Legally, the current tax is Motorbezogene Versicherungssteuer.

My car is registered in Austria, but I live abroad. Do I still pay?

Yes, as long as the vehicle is registered in Austria, the tax accrues. To stop it, you must deregister the vehicle or apply for an exemption (Befreiung).

Summary: What You Need to Know About Car Tax in Austria

Car tax in Austria (Kfz-Steuer / Motorbezogene Versicherungssteuer) is a mandatory annual expense for every car owner. Here are the key takeaways:

• For passenger cars, the tax is bundled with your insurance premium — you pay it together with mandatory Kfz-Haftpflichtversicherung
• The amount depends on engine power (kW) and CO₂ emissions — more powerful and dirtier cars pay more
• Minimum: 6.50 €/month (78 €/year), maximum: 76 €/month (912 €/year) for passenger cars
• Electric cars have been taxed since April 2025 — using a new weight-and-power formula
• Paying annually is the cheapest option — no instalment surcharges
• When buying a car, compare kW and CO₂ figures — a 50 kW difference can cost 500+ € per year

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