TVS 2026: calculation and points of vigilance

Updated March 30, 2026 - When looking for TVS 2026 calculation, it is important to recall a fundamental point: the TVS (Taxe sur les Vehicules de Société) has been replaced by two taxes on the allocation of vehicles for economic purposes. In practice, many companies still use the old name, and the tax administration itself refers to these as "ex-TVS taxes". Since 2022, the tax régime applicable to company vehicles has changed significantly, and the rates evolve each year until 2027 to accelerate the transition towards cleaner fleets.

To go further, you can also read Benefit in kind electric vehicle, Meal expenses taxes 2026 and Tax or social question.

The company vehicle tax, as it existed before 2022, was removed from the French General Tax Code. It has been replaced by two distinct but cumulative contributions:

• the annual tax on CO2 émissions of passenger vehicles;
• the annual tax on atmospheric pollutant émissions.

These two taxes are added together for each affected vehicle. The calculation is no longer based on calendar quarters as under the old TVS, but is calculated pro rata to the number of days the vehicle is allocated to economic activity during the calendar year. This change in calculation method can represent significant savings for vehicles acquired or disposed of mid-year.

It is important to note that ex-TVS taxes are not déductible from taxable income for corporate tax (IS) purposes. They constitute a non-recoverable expense that the company must factor into its operating budget.

The taxes apply to vehicles that meet two cumulative conditions: being passenger vehicles and being allocated to economic purposes.

Specifically, the following are targeted:

• Category M1 vehicles (passenger cars, VP mention on the registration certificate) with a maximum of eight seats;
• Category N1 multi-purpose vehicles (vans with at least two or three rows of seats, BB mention);
• Pick-ups with at least 5 seats (category N1, BE mention).

A company is liable for the taxes when it owns a vehicle registered in its name, has one through leasing (longer than 30 consecutive days), or covers all or part of the costs related to a vehicle used for business purposes (fuel, maintenance, mileage allowances).

Since January 1, 2025, a major change has taken effect: hybrid vehicles are no longer exempt from the CO2 émissions tax. Only 100% electric and hydrogen vehicles remain fully exempt from both components.

The CO2 émissions tax rate results from the application of a progressive bracket-based schedule. The applicable schedule depends on the vehicle's homologation method.

WLTP schedule (vehicles registered after March 1, 2020)#

This is the most common schedule for recent fleets. The WLTP standard reflects more realistic driving conditions than the old NEDC standard. For 2026 (tax payable in January 2027 for the 2026 year), the brackets are:

• up to 4 g/km: €0;
• 5 to 45 g/km: €1 per g/km;
• 46 to 53 g/km: €2 per g/km;
• 54 to 85 g/km: €3 per g/km;
• 86 to 105 g/km: €4 per g/km;
• 106 to 125 g/km: €10 per g/km;
• 126 to 145 g/km: €50 per g/km;
• 146 to 165 g/km: €60 per g/km;
• from 166 g/km: €65 per g/km.

The rates increase each year until 2027, with thresholds shifting downward to tighten taxation.

NEDC schedule (vehicles in circulation between 2006 and 2020)#

For vehicles owned or used by a company since January 2006, with first registration after June 1, 2004, the NEDC schedule applies:

• up to 3 g/km: €0;
• 4 to 37 g/km: €1 per g/km;
• 38 to 44 g/km: €2 per g/km;
• 45 to 70 g/km: €3 per g/km;
• 71 to 87 g/km: €4 per g/km;
• 88 to 103 g/km: €10 per g/km;
• 104 to 120 g/km: €50 per g/km;
• 121 to 136 g/km: €60 per g/km;
• from 137 g/km: €65 per g/km.

Administrative power schedule (residual cases)#

For vehicles that fall under neither WLTP nor NEDC (no European approval or already allocated before 2006), the calculation is based on fiscal horsepower:

• up to 3 CV: €2,000;
• 4 to 6 CV: €3,000;
• 7 to 10 CV: €4,500;
• 11 to 15 CV: €5,250;
• from 16 CV: €6,500.

This second component depends on the vehicle's pollutant émission category, which generally corresponds to the Crit'Air sticker:

• Category E (100% electric or hydrogen vehicles): €0;
• Category 1 (hybrids, petrol Euro 5 or 6): €130 per year;
• Catégories 2 to 5 and unclassified (diesel, older petrol standards): €650 per year.

The 2026 rates have increased compared to 2025: Category 1 rises from €100 to €130, and the most polluting vehicle category rises from €500 to €650. This increase is part of the progressive tightening logic until 2027.

Let's look at three representative situations to illustrate the calculation mechanism.

Older petrol car (NEDC schedule)#

A 2014 Peugeot 308 petrol, acquired the same year, emitting 200 g/km of CO2 (NEDC) with a Crit'Air 1 sticker.

CO2 tax (NEDC bracket calculation): 3 × 0 + 34 × 1 + 7 × 2 + 26 × 3 + 17 × 4 + 16 × 10 + 17 × 50 + 16 × 60 + 64 × 65 = €6,324.

Pollutant tax (Category 1): €130.

Annual total: €6,454.

This amount illustrates why older thermal vehicles represent a major tax cost for companies that keep them in their fleet.

Recent hybrid vehicle (WLTP schedule)#

A hybrid vehicle registered in 2021, emitting 105 g/km of CO2 (WLTP), Crit'Air 1 sticker.

CO2 tax (WLTP): 4 × 0 + 41 × 1 + 8 × 2 + 32 × 3 + 20 × 4 = €233.

Pollutant tax (Category 1): €130.

Annual total: €363.

The end of the CO2 exemption for hybrids since 2025 makes these vehicles less tax-advantageous than before, even though the amount remains moderate compared to older thermal vehicles.

Electric vehicle#

A 100% electric vehicle: 0 g/km CO2, Crit'Air E category.

CO2 tax: €0. Pollutant tax: €0.

Annual total: €0.

The total exemption of electric and hydrogen vehicles remains the most powerful lever for reducing the tax burden related to company vehicles.

The annual amount calculated according to the schedules above is multiplied by the annual allocation proportion of the vehicle to economic activity. If the vehicle is allocated for the full year, the proportion is 100%.

In case of acquisition, disposal or period of non-allocation during the year, the proportion is calculated as follows:

Proportion = number of days of allocation / 365 (or 366 for a leap year).

For example, a vehicle allocated for 200 days during the year will see its tax reduced to 200/365, or approximately 55% of the annual rate.

Several situations allow total or partial exemption from ex-TVS taxes:

• electric and hydrogen vehicles are exempt from both taxes;
• vehicles used for public passenger transport (taxis, VTC) are permanently exempt;
• driving school vehicles, those used for sporting competitions or agricultural and forestry activities benefit from exemption;
• wheelchair-accessible vehicles or adapted for disabled persons are exempt;
• rentals of less than 30 consecutive days are fully exempt;
• sole proprietorships benefit from an exemption subject to the "de minimis" aid ceiling over three rolling fiscal years.

In case of mixed use (partially exempt), the exemption applies pro rata to the time allocated to the exempt activity.

When a company reimburses mileage allowances to employees or directors using their personal vehicle for business purposes, a deduction applies to the tax owed, calculated based on annual reimbursed mileage:

• up to 15,000 km: 0% deduction;
• 15,001 to 25,000 km: 25%;
• 25,001 to 35,000 km: 50%;
• 35,001 to 45,000 km: 75%;
• over 45,000 km: 100%.

A €15,000 deduction also applies to the total tax amount owed for all vehicles owned or leased by a company, subject to compliance with the de minimis ceiling of €300,000 over three years.

Déclaration procedures depend on the company's VAT régime:

• Standard real régime: déclaration via the annex to form 3310-A-SD, filed during January following the tax period;
• Simplified real régime: déclaration via form 3517 (CA12 annex), filed within 3 months following the end of the fiscal year (by May 2, 2026 for years ending December 31);
• Companies not liable for VAT: déclaration on form 3310-A, filed no later than January 25 of the following year.

All companies must prepare an annual summary statement of vehicles used, including those benefiting from an exemption, using form n° 2857-FC-SD. Failure to meet deadlines exposes the company to tax penalties.

Several levers allow control of ex-TVS tax costs:

• favor electric or hydrogen vehicles, fully exempt;
• gradually renew the fleet towards low WLTP émission vehicles;
• optimize the holding period of the most polluting vehicles to limit application of the highest rates;
• verify applicable exemption cases for your activity (transport, driving school, mixed use);
• anticipate the déclaration to avoid late penalties.

Hayot Expertise insight: the correct calculation does not start with a price. It begins with the correct identification of taxable vehicles, their homologation standard and their allocation period. An error in schedule or Crit'Air category can cost several thousand euros.

We can help you verify the basis, the déclaration and the cases of exemption or dispensation.

Discover our accounting and tax support