Important — not tax advice
This guide explains the principles of company-car (free car) taxation and is not tax advice. Rates and rules are set politically and can change. Always confirm the applicable rules with the Danish tax authority (Skat) and get specific advice from your accountant before deciding.
How free-car tax is calculated (broadly)
Company-car taxation is based on the car's taxable value. A percentage of the value is applied (with a minimum basis so very cheap cars aren't taxed too low), plus an environmental supplement linked to the car's ownership tax. The amount is taxed on an ongoing basis as personal income for the employee who has the car available.
According to publicly available sources for 2026, a rate in the region of 22.5% of the taxable value is used, with a minimum basis around DKK 160,000, plus an environmental supplement calculated as a high percentage of the annual ownership tax. Treat these figures as indicative and confirm them with the tax authority.
Why EVs are often favourable
EVs typically have a lower ownership tax than comparable petrol and diesel cars. Since the environmental supplement is linked to the ownership tax, it becomes correspondingly lower — so the total taxation of an EV company car often ends up below that of a petrol car in the same price class. That's a big part of why many companies choose an EV as a company car.
Charger and charging
Under current rules, employees are typically not taxed on a charger installed at home for a free EV. That makes home charging more attractive. The rules can change, so check the applicable terms with the tax authority.
Things to watch
- Recalculation: the car's tax basis can be recalculated after a period — ask your accountant.
- Private vs. business: the rules differ from private purchase/leasing — see also leasing vs. buying.
- Taxes: the underlying registration tax affects the value — see the tax guide.
Bottom line: a Tesla as a company car can be very attractive, but the specific figures depend on model, price and your circumstances. Use this guide as an overview — and let an accountant run the numbers for your situation.