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Taxation
Taxes on the use of private vehicles for economic purposes (ex TVS) are changing
Publié le 11 janvier 2024 - Directorate for Legal and Administrative Information (Prime Minister)
In order to accelerate the transition to the use of clean vehicles, taxes on the use of passenger vehicles for economic purposes (ex-TVS) are changing as of 2024. These amendments will continue until 2027.
As a reminder, in 2023, the business tax (VAT) was replaced by two taxes: the annual CO₂ tax and the annual car age tax.
These levies concern traders (businesses and individual companies) using or owning passenger transport vehicles in the course of their activity.
As of 2024, these 2 taxes on the use of passenger vehicles for economic purposes are being amended.
Replacement of the annual vehicle age tax with the air pollutant emission tax
At 1er january 2024, the air pollutant emission tax replaced the annual vehicle age tax, which was introduced in 2023.
The annual amount of this new tax varies according to the pollutant emission category to which the vehicle belongs:
Pollutant emission category | Vehicle Characteristics | Annual tax rate |
|---|---|---|
E | Vehicle powered exclusively by electricity | €0 |
1 | Vehicle powered by a positive-ignition internal combustion engine and complying with the Euro 5 or Euro 6 emission limit values | €100 |
Most polluting vehicles | Other vehicles | €500 |
Please note
Wheelchair accessible vehicles are exempt from this tax.
Increase in annual tax on CO₂ emissions
At 1er January 2024, the annual CO₂ tax rates are increasing and changing.
For example, the WLTP now includes a marginal tariff for each fraction of carbon dioxide (CO2) emissions. This tariff applies to vehicles registered for the first time in France from March 2020. The rate threshold has been lowered by 5 grams per kilometer.
This scale is as follows for the year 2024:
Fraction of carbon dioxide (CO2) emissions | Marginal tariff applicable to vehicles covered by the WLTP registration system |
|---|---|
Up to 14 g/km | €0 |
From 15 to 55 g/km | €1 |
From 56 to 63 g/km | €2 |
From 64 to 95 g/km | €3 |
From 96 to 115 g/km | €4 |
From 116 to 135 g/km | €10 |
From 136 to 155 g/km | €50 |
From 156 to 175 g/km | €60 |
From 176 g/km | €65 |
The NEDC scale, which covers vehicles owned or used by a company since January 2006 and first put into service after 1er June 2004, increased by different fractions:
Fraction of carbon dioxide (CO2) emissions | Marginal tariff applicable to vehicles covered by the NEDC registration system |
|---|---|
Up to 12 g/km | €0 |
From 13 to 45 g/km | €1 |
From 46 to 52 g/km | €2 |
From 53 to 79 g/km | €3 |
80 to 95 g/km | €4 |
From 96 to 112 g/km | €10 |
From 113 to 128 g/km | €50 |
From 129 to 145 g/km | €60 |
From 146 g/km | €65 |
Finally, the scale in fiscal power, which concerns vehicles which do not fall under the previous two categories, is also evolving as from 2024:
Fraction of fiscal power (in horsepower, CV) | Marginal rate |
|---|---|
Up to 3 | €1,500 |
4 to 6 | €2,250 |
7 to 10 | €3,750 |
11 to 15 | €4,750 |
From 16 | €6,000 |
Please note
These scales will gradually increase until 2027.
End of exemption for hybrid vehicles from 2025
At 1er January 2025, hybrid vehicles will no longer be exempt from the annual CO₂ tax.
Only the following allowances shall be applied to vehicles whose energy source includes superethanol E85:
- 40 % of CO₂ emissions, except where these exceed 250 g/km;
- 2 horsepower for fiscal power, except where the latter exceeds 12 horsepower.