Company car: Calculation of the Benefit in Kind 2026
Package or real? Discover the new 2026 scales for calculating the vehicle benefit in kind and how to optimize taxation for the manager.
Expert note: This article was written by our chartered accountancy firm. Information is current as of 2026. For a personalised review of your situation, contact us.
Company car: Calculation of the Benefit in Kind 2026
Updated March 2026 - Providing a vehicle to an employee or manager for their private needs constitutes a benefit in kind (AEN). This “non-cash” remuneration supplement is complex: it is subject to social security contributions and income tax. With the revaluation of the scales taking place in 2025 and the new ecological requirements of 2026, how can we calculate this advantage without risking a URSSAF (French social contributions authority) adjustment? Flat rate or real fees: which is the most cost-effective option for your business?
1. The two official calculation methods
The employer has the choice between two evaluation methods. This choice is annual and can be different for each employee.
Method A: The flat-rate assessment (The simplest)
The package exempts you from keeping a precise mileage record. The rates depend on the age of the vehicle (more or less than 5 years) and whether or not the company covers the fuel.
| Vehicle purchased | Without fuel paid by the company | With fuel (global package) |
|---|---|---|
| Under 5 years | 9% of the purchase price including tax | 12% of the purchase price including tax |
| More than 5 years | 6% of the purchase price including tax | 9% of the purchase price including tax |
Note: For rental vehicles (LLD/LOA), the fixed price is 30% of the overall annual cost (rent + maintenance + insurance) without fuel, and 40% with.
Method B: Valuation at actual costs
Here, we calculate the AEN based on actual private use. Formula: [(Depreciation + Insurance + Maintenance) x (private km / total km)] + Private fuel costs. This method requires absolute rigor in tracking kilometers.
Hayot Expertise Advice: The actual assessment is almost always more advantageous if the beneficiary uses the car very little on weekends and during vacations. Conversely, if the vehicle is the family's "main vehicle", the package is unbeatable.
2. The specific case of electric vehicles in 2026
To encourage the energy transition, the calculation rules for 100% electric vehicles have been made permanent.
- ▸50% reduction: The amount of the package is reduced by half (within the limit of an annual ceiling, often around €1,900).
- ▸Zero fuel: Electricity costs covered by the employer (office terminal or recharge card) are not counted in the AEN.
3. Fiscal and social impact for the beneficiary
The benefit in kind is added to the gross salary on the pay slip.
- ▸Social contributions: Around 22% (employee) and 45% (employer) of charges are calculated on this benefit.
- ▸Income Tax: The AEN increases net taxable income. A high-end vehicle can thus blow up a tax bracket for the manager!
4. VAT and tax deduction for the company
Beware of confusion:
- ▸VAT: For a passenger car (PV), the VAT on the purchase or rental is never recoverable, even if the vehicle is essential to the activity.
- ▸Depreciation: The tax deduction for rentals or depreciation is capped according to CO2 emissions (the more the vehicle pollutes, the less expenses you can deduct).
👉 Use our employer cost simulator to compare salary and company car
Conclusion
The choice of a company car should not be guided only by aesthetics, but by a numerical simulation from the AEN. In 2026, the shift towards electric remains the most effective strategy for minimizing social charges while benefiting from a premium vehicle.
📞 Do you want to optimize your company's vehicle fleet? Our experts will help you choose the ownership method (professional purchase, leasing or mileage allowances) best suited to your tax profile.
(Official sources: BOSS.gouv.fr - Vehicle benefits in kind, Article 82 of the CGI, Urssaf.fr)
Article written by Samuel HAYOT
Chartered Accountant, registered with the Institute of Chartered Accountants.
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