What changes for drivers in 2026
In 2026, the Euro 7 standard, e-car subsidies, higher commuter allowances, price limits for company cars, and depreciation will come into effect.
Will state subsidies for electric cars actually make these new cars more affordable? 2026 will also provide an answer to that. In the picture: Kia EV6 (test)
(Image: Martin Franz / heise Medien)
- Wolfgang Gomoll
In 2026, a number of things will change for drivers: the Euro 7 emissions standard will also regulate batteries and brake and tire wear for the first time. The commuter allowance is set to increase. For company cars and depreciation, a higher price limit will apply.
Purchase of electric cars to be subsidized again
Households with low and medium incomes, up to a taxable annual household income of a maximum of 80,000 Euros, will again receive state subsidies for the purchase of electric cars. The eligibility limit will increase by 5,000 euros per child. A basic subsidy of 3,000 euros will be set, which will increase by 500 euros per child depending on the number of children, up to a maximum of 1,000 euros. For particularly low incomes, an additional increase is planned. The subsidy program is expected to be finalized by the end of the year and launched as soon as possible in 2026, subject to approval by the EU Commission. It remains to be seen whether this will actually change the real prices for new cars. Toyota, for example, explicitly states in the fine print of the newly introduced C-HR+ that this price is only valid until the end of March. It may be a coincidence, of course, but the most likely start date for the renewed subsidy for electric cars is April 1, 2026.
Euro 7 includes tires, brakes, and batteries
From November 29, 2026, the Euro 7 emissions standard will initially apply to newly type-approved passenger cars and light commercial vehicles. One year later, all new registrations of these classes must comply with the emission specifications. Further stages for buses and heavy trucks will follow in 2028/2029. Emission limit values will only be moderately tightened. The difference lies in the measurement regulations. Ultra-fine particles smaller than ten nanometers will now also be detected in gasoline engines. It will be checked more precisely and for longer whether a car actually complies with the limit values in everyday use. The minimum durability for exhaust aftertreatment is 160,000 km, or eight years. In Annex IV of Regulation “EU 2024/1257,” under “Lifetime Requirements,” a further lifespan of up to 200,000 km or ten years is specified, but with a deterioration factor.
For traction batteries, durability requirements will apply for the first time. The batteries of a battery-electric car or a plug-in hybrid must retain at least 80 percent of their original energy content after five years, or 100,000 km, and at least 72 percent after eight years, or 160,000 km. In addition, there are rules for brake and tire wear. Initially, different limit values will apply depending on the type of drive: for electric cars, it is three milligrams of brake dust per kilometer, and for all other types of drive, it is 7 mg/km. From January 1, 2035, a uniform value of 3 mg/km will be introduced for all. For tire wear, Euro 7 sets the testing and regulatory framework, but specific values have not yet been determined.
Watch out when refueling: the next stage for CO2 prices is coming in 2026
With the national CO2 price (Fuel Emissions Trading Act, BEHG for short), Germany will switch from fixed stages to an auction price in national emissions trading in 2026. This must be within a corridor of 55 to 65 Euros per ton of CO2. An important detail for 2026: after the auctions, additional sales dates at a fixed price of 68 Euros per certificate are planned. What does this mean specifically at the pump? Drivers already indirectly pay 55 euros per ton of CO2 through levies. Accordingly, the effect in 2026 will be rather small. It depends on how high the CO2 price actually is:
- If it remains at 55 Euros, the CO2 share of the liter price will not change compared to 2025.
- If it rises to 65 Euros, this will mathematically result in around 2.8 cents more per liter of gasoline and around 3.2 cents more per liter of diesel (incl. 19 percent VAT).
Commuter allowance to increase
From January 1, 2026, the distance allowance will permanently be 38 cents per kilometer, starting from the first kilometer. Previously, it was 30 cents for the first 20 kilometers and 38 cents from the 21st kilometer. The cabinet draft has already been approved. Parliamentary decisions are scheduled for December 2025.
Company cars and depreciation: higher price limit
For purely electric company cars (BEV/fuel cell) purchased from July 1, 2025, a higher price limit of 100,000 Euros will apply to the 0.25 percent rule (0.5 percent above that). For vehicles with combustion engines, it remains at one percent. In addition, a degressive depreciation is provided for electrically powered vehicles, which is limited in time. It applies to purchases between June 30, 2025, and January 1, 2028.
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Car insurance: new type classes 2026
According to ADAC, the type classes will increase for around 5.9 million insured people, while 4.5 million will benefit from lower classifications. A total of approximately 33,000 models are covered. Depending on the model's claims history, the premium can fluctuate significantly – sometimes independently of no-claims classes. The residential area factor will also be readjusted: 5.3 million insured people will drive with a better regional class (51 districts) in 2026, and five million with a worse one (48 districts). 314 districts will remain stable (32.1 million insured individuals). The basis for this is the actual claims data per registration district.
Deutschlandticket: 63 Euros per month from January 1, 2026
The federal and state governments have set the price for the Deutschlandticket at 63 Euros and secured its financing until 2030. Attention: Those whose subscriptions are with Deutsche Bahn must actively agree to the price adjustment. Otherwise, the subscription will end on December 31, 2025. Prospectively, an index mechanism is planned for future adjustments.
eCall via LTE/5G instead of 2G/3G, mandatory from 2026/2027
From January 1, 2026, newly developed car and light commercial vehicle models will only receive EU type approval if they have an onboard emergency call system that uses LTE/5G (Regulation (EU) 2024/1180). This is because the old 2G/3G networks are being phased out. The transition will be completed by January 1, 2027. Then, new cars will only be approved if their eCall complies with the new LTE/5G specifications. For drivers, this means the 112 emergency call function remains, but the technology behind it will be more modern.
Driver's license on the smartphone
Even before its EU-wide introduction in 2030, the digital driver's license is expected to be available in Germany by the end of 2026. If the driving license can be verified on a corresponding app on the smartphone, it will not need to be carried within Germany for now.
Driver's license exchange for issue years 1999–2001
Anyone with a card driver's license issued in 1999, 2000, or 2001 must exchange it for the EU credit card format by January 19, 2026. Those who miss this deadline and are caught with the old driver's license during a check risk a warning fine of 10 euros and must complete the exchange. While this is not a criminal offense, as the driving license remains valid, the old driver's license can cause problems, especially abroad or when renting vehicles.
MOT sticker: “blue” stickers are due in 2026
Anyone with a blue MOT sticker on their license plate must undergo the main inspection in 2026. After passing the inspection, the examiner will affix a brown sticker. This defines the next due date in 2028 (for passenger cars, regularly every two years; new cars: first after three years). The color system operates on a fixed six-year cycle, allowing police and owners to see the dates at a glance.
Tachograph obligation for light commercial vehicles in international traffic
From July 1, 2026, the tachograph obligation in the EU will also apply to vans with a permissible gross vehicle weight between 2.5 and 3.5 tons. However, this only applies to cross-border operations. The new intelligent tachograph (Gen2V2) logs border crossings. Exceptions apply to purely national, non-commercial trips or classic company transport without the driver's activity being the main job. Previously, these vehicles were exempt from the obligation. This reform closes a control gap.
Vehicle tax exemption for electric cars extended
Currently, purely electric cars first registered by December 31, 2025, are exempt from vehicle tax for ten years (maximum until the end of 2030). The federal government has decided to extend this until December 31, 2030. E-cars first registered by the end of 2030 will remain tax-exempt for up to ten years due to this legal amendment, a maximum of until December 31, 2035. The entry into force is planned for January 1, 2026.
Abolition of the obligation to use cycle paths for electric scooters
Further assistance systems and safety functions will become mandatory
- An emergency braking system to protect pedestrians and cyclists. This assistant should brake the vehicle to prevent or mitigate a collision with unprotected road users.
- A concentration and distraction monitoring system. The system should help the driver to concentrate on traffic. To achieve this, the behavior of the person at the wheel is observed.
- An extended head impact protection area or pedestrian protection. Vehicles must be designed and built to provide an extended head impact protection area to reduce injuries to pedestrians in the event of an accident.
- An emergency lanekeeping assistant must now also be installed ex works in vehicles with hydraulic power steering. For vehicles with electric power steering, this system already became mandatory for initial registration on July 7, 2024.
Changes for travel in European countries
Austria plans a law that allows cities to monitor access bans via cameras. Important: This will also apply to foreign license plates. Unauthorized entry will result in fines, and anyone who fails to provide driver information risks a penalty of up to 2180 euros. Signage and additional information boards are planned. This means: check the signage carefully before traveling! If necessary, an access permit must be applied for. Important: The obligation to provide information applies to the owner, regardless of who was driving. Failure to respond risks an additional administrative penalty.
Croatia will switch its motorway tolls to a digital system in autumn 2026. In the future, drivers will use an e-vignette or a toll box and pay based on distance. Venice will charge a daily entrance fee on 60 days in 2026. Therefore, the time slot should be booked in advance online via the municipal portal “cda.ve.it” and the booking or QR code should be carried; otherwise, it can be expensive during checks. Even three-digit amounts. In Spain, a yellow flashing light must be placed instead of a warning triangle in case of accidents or breakdowns. However, this regulation does not apply to travelers driving their cars in Spain. The new regulation only applies to vehicles registered in Spain, including rental cars. These must then be equipped accordingly by the rental companies. England and Wales plan to lower the legal blood alcohol limit for drivers from 35 to 22 micrograms per 100 milliliters of breath.
(kbe)