TVS 2026 calculation: new taxes, rates and simulator
Understand what business owners still search for under TVS, estimate your 2026 exposure and compare purchase, leasing, allocation and expense reimbursement with a real tax lens.
Bridge the TVS search term with the legal tax framework that now applies.
Identify which vehicles, leases and usage patterns trigger tax cost.
Compare owned fleets, leases, director allocation and expense reimbursements.
Quick answer
How do you calculate the French company car tax (TVS) in 2026?
Since 2022 the former TVS is the sum of two annual taxes: a CO2 tax, obtained by applying the 2026 marginal rate to each band of WLTP emissions, and an air pollutant tax (€0, €130 or €650 depending on the vehicle category). The total is then prorated by days of use ÷ 365. Example: a 130 g/km petrol car used all through 2026 costs €683 of CO2 tax + €130 of pollutant tax, i.e. €813.
- Formula
- (CO2 tax + pollutant tax) × days ÷ 365
- 2026 pollutant tax
- €0 / €130 / €650
- 130 g/km car, 365 days
- €813
Reviewed by Samuel Hayot, chartered accountant (Ordre des experts-comptables), last updated
What “TVS” means in 2026
The company car tax (taxe sur les véhicules de sociétés, TVS) was abolished on 1 January 2022. The French tax code on goods and services (CIBS) replaced it with two annual taxes on passenger vehicles used for business purposes (taxes sur l’affectation des véhicules de tourisme à des fins économiques): an annual CO2 emissions tax and an annual air pollutant tax (called the “age tax” until 2023). A “TVS 2022” and a “TVS 2026” calculation follow the same mechanics, but not the same rates.
The taxes are due by businesses, including single-shareholder companies (EURL, SASU), that use a passenger car for their business: owned, on long-term lease or lease with purchase option, provided to an employee or director, or an employee’s own car whose mileage is reimbursed (indemnités kilométriques, IK). Sole proprietorships (entreprises individuelles) are exempt, as are fully electric and hydrogen vehicles.
The CO2 scale tightens every year under the 2024 Finance Act: for the same 100 g/km WLTP car, the CO2 tax is €173 in 2024, €193 in 2025 and €213 in 2026, according to the examples published in the official tax guidance (Bofip). The pollutant tax was raised by the 2026 Finance Act (€130 and €650, up from €100 and €500). A calculation based on a previous year’s scale is therefore wrong.
Formulas for the former TVS in 2026
- CO2 tax (WLTP scale)
- Sum, band by band, of the grams within the band × marginal rate of the band
- Pollutant tax
- €0 (category E); €130 (category 1); €650 (most polluting vehicles)
- Use ratio
- Days of business use in the year ÷ 365 (366 in a leap year)
- Tax due per vehicle
- (CO2 tax + pollutant tax) × use ratio
- E85 allowance
- CO2 retained = CO2 × 60% (unless emissions exceed 250 g/km)
- Employee cars reimbursed via IK
- Amount × weighting coefficient (0% to 100% based on reimbursed km), then a €15,000 overall reduction
The WLTP scale below is the one in article L421-120 of the CIBS in force from 1 January to 31 December 2026. Vehicles type-approved under the older NEDC standard or taxed on administrative horsepower fall under other scales (articles L421-121 and L421-122), which the simulator does not cover.
Calculate the 2026 tax for one vehicle in 5 steps
The mechanics are the same across the fleet: calculate vehicle by vehicle, then add up. The data come from the registration certificate (certificat d’immatriculation) and your fleet register.
- 1
Check that the vehicle is taxable
Only passenger vehicles (category M1, and some dual-use N1 vans) are caught. Rule out exempt vehicles: fully electric or hydrogen, wheelchair-accessible, rented for one calendar month or 30 consecutive days at most in the year, used for specific activities (taxi, ride-hailing, driving school, rental). A sole proprietorship is not liable.
- 2
Read the WLTP CO2 emissions
The figure is in field V.7 of the registration certificate for WLTP type-approved vehicles (in practice, first registered since March 2020). For an E85 flex-fuel vehicle, retain 60% of that value if it does not exceed 250 g/km.
- 3
Apply the progressive scale band by band
The scale is marginal, like income tax brackets: each gram is taxed at the rate of its band, not all emissions at the top band rate. At 130 g/km, only the last 5 grams (126 to 130) are taxed at €50; the first 125 stay at the lower rates.
- 4
Add the pollutant tax by category
Category E (electric, hydrogen): €0. Category 1 (petrol, gas and hybrids meeting Euro 5 or Euro 6, i.e. Crit’Air 1): €130. All other vehicles, including every diesel, are “most polluting vehicles”: €650.
- 5
Prorate, add up and file
Multiply the total by days of use ÷ 365 (vehicle joining or leaving the fleet during the year). Add up all vehicles, then file and pay once the following year: schedule 3310-A with the January 2027 VAT return under the standard regime (and for businesses not liable to VAT), or the annual CA12 VAT return (form 3517) under the simplified regime.
Worked example: a 130 g/km petrol car in 2026
A French SAS provides its sales director with a Crit’Air 1 petrol saloon emitting 130 g/km WLTP, in the fleet from 1 January to 31 December 2026. These are the simulator default values (130 g/km, 365 days, category 1).
| Band or item | Calculation | Amount |
|---|---|---|
| Up to 4 g/km | 4 × €0 | €0 |
| 5 to 45 g/km | 41 × €1 | €41 |
| 46 to 53 g/km | 8 × €2 | €16 |
| 54 to 85 g/km | 32 × €3 | €96 |
| 86 to 105 g/km | 20 × €4 | €80 |
| 106 to 125 g/km | 20 × €10 | €200 |
| 126 to 130 g/km | 5 × €50 | €250 |
| Annual CO2 tax | Sum of bands | €683 |
| Annual pollutant tax (category 1) | Flat 2026 rate | €130 |
| Total for 365 days | 683 + 130 | €813 |
| Variant: 200 days of use | 813 × 200 ÷ 365 | €445.48 |
| Variant: same car as a diesel | 683 + 650 | €1,333 |
Reading: the five grams above 125 g/km cost €250 on their own, more than a third of the CO2 tax. At 125 g/km, the CO2 tax drops to €433 and the total to €563. As a diesel, the “most polluting” category adds €520 a year for identical CO2 emissions. Finally, for a company subject to corporate income tax (impôt sur les sociétés, IS), these taxes are not deductible: the €813 really costs €813, whereas a deductible expense of the same amount would cost €610 after IS at the standard 25% rate.
2026 scale and benchmarks: what a car costs depending on its emissions
Marginal rates of the CO2 tax (article L421-120 of the CIBS, 2026 version) and full annual amount for a vehicle used 365 days.
| WLTP emissions | 2026 marginal rate | Cumulative CO2 tax | Total category 1 (+€130) | Total most polluting (+€650) |
|---|---|---|---|---|
| Up to 4 g/km | €0/g | €0 | €130 | €650 |
| 5 to 45 g/km | €1/g | €41 at 45 g | €171 | €691 |
| 46 to 53 g/km | €2/g | €57 at 53 g | €187 | €707 |
| 54 to 85 g/km | €3/g | €153 at 85 g | €283 | €803 |
| 86 to 105 g/km | €4/g | €233 at 105 g | €363 | €883 |
| 106 to 125 g/km | €10/g | €433 at 125 g | €563 | €1,083 |
| 126 to 145 g/km | €50/g | €1,433 at 145 g | €1,563 | €2,083 |
| 146 to 165 g/km | €60/g | €2,633 at 165 g | €2,763 | €3,283 |
| 166 g/km and above | €65/g | €4,908 at 200 g | €5,038 | €5,558 |
A fully electric or hydrogen vehicle is exempt from both taxes. Hybrids, plug-in or not, have been taxed normally since 1 January 2025. The pollutant tax increase voted in the 2026 Finance Act appears in the CIBS in a version in force from 1 March 2026; the tax administration publishes a single 2026 annual rate (€130 and €650), but the treatment of days of use in January and February 2026 should be checked when filing.
Best practices to control your fleet tax cost
- Keep a dated fleet register: registration, WLTP emissions, Crit’Air category, entry and exit dates, assigned user. It drives the use ratio and is the first document requested in a tax audit.
- Include the annual tax in total cost of ownership (TCO) before every order: over four years, 5 g/km above 125 g/km means about €1,000 of non-deductible tax.
- Redo the calculation every year: the CO2 scale tightens with each vintage, a 100 g/km car taxed €193 in 2025 is taxed €213 in 2026.
- Compare diesel and petrol including the pollutant tax: €650 versus €130 a year, a €520 annual gap for identical CO2 emissions.
- For employees’ own cars reimbursed via IK, track reimbursed kilometres per vehicle: below 15,000 km the weighting coefficient is zero, and the €15,000 reduction often absorbs the rest.
- Accrue the tax at year-end and add it back in the corporate tax return (liasse fiscale) of a company subject to IS.
- Check in December for vehicles that left the fleet or were rented occasionally: a rental of one calendar month or 30 consecutive days at most is not taxable.
The most common calculation mistakes
Applying the top band rate to every gram
At 130 g/km, taxing 130 × €50 would give €6,500 instead of €683. The scale is progressive by band: each band is taxed only at its own rate.
Reusing a previous year’s scale
Band limits have been lowered every year since the 2024 Finance Act. A “TVS 2022” or “TVS 2025” spreadsheet that has not been updated systematically understates the 2026 tax.
Assuming a SASU or EURL is exempt
The exemption covers sole proprietorships only. A single-shareholder company remains liable, including for the one car used by its sole director.
Leaving out hybrids and employee cars
Hybrids have not been exempt since 2025, and employees’ own cars reimbursed through mileage allowances fall within scope with a weighting coefficient. Excluding them by default makes the return wrong.
Prorating by business use percentage
The law provides no proration by share of business use for a company car: the ratio is based on days of use. Only employee cars reimbursed via IK get a mileage-based coefficient.
Deducting the tax from IS taxable profit
For a company subject to corporate income tax, these taxes are excluded from deductible expenses (article 213 of the French tax code, CGI) and must be added back. A company taxed under income tax (IR) can deduct them.
The market still says TVS even though tax law no longer does
TVS remains a very strong search term for French business owners, even though the legal framework has changed. A useful page therefore needs to do two things well: capture that search intent and reframe it in current tax language. That is what turns a rough estimate into a decision-ready calculation.
What replaced the former TVS?
Official French guidance explains that the former TVS now corresponds to two annual taxes on vehicles used for business purposes: one linked to CO2 emissions and one linked to atmospheric pollutants. TVS remains valuable for SEO, but the tax vocabulary must be updated.
- TVS still matters as a search term and entry point.
- The 2026 legal framework is now split into two distinct taxes.
- A strong simulator should connect the old wording to the current rules.
Which vehicles and businesses are affected?
The scope is broader than a vehicle purchased directly by the company. Leased vehicles, vehicles made available to the business and some expense reimbursements can also matter depending on use and facts.
- Tax exposure can exist without direct ownership.
- Vehicle category and actual use matter a lot.
- Poor fleet documentation quickly blurs the taxable perimeter.
How should the 2026 rate logic be read?
Official guidance highlights days of allocation, emissions profile and vehicle category as key inputs. The tax is paid the following year for the previous year’s use, so a serious estimate must be aligned with actual business use rather than the list price alone.
- Days of allocation can materially change the result.
- CO2 profile and pollutant category remain central.
- Fleet cost should be reviewed at portfolio level, not vehicle by vehicle in isolation.
What to validate before locking your fleet cost view
A shallow reading of TVS often leads to underestimating the full cost of a fleet. The topic should be reviewed through tax, payroll, mobility and accounting documentation together.
- The right perimeter of vehicles that are actually taxable.
- Days of allocation and the exact vehicle category.
- The effect of ownership, leasing, allocation or reimbursement models.
- Possible alternatives to reduce total cost without hurting operations.
TVS 2026 FAQ
Does TVS still exist in 2026?
The label is still widely used in business practice and search, but the current framework is now based on two annual taxes on vehicles used for business purposes.
Can a leased vehicle still be concerned?
Yes. The topic is not limited to vehicles bought directly by the business. Leasing and certain reimbursement patterns can also create exposure depending on the facts.
Why simulate before choosing a vehicle?
Because the real tax cost depends on criteria that do not appear in the list price alone. The right decision always comes from full cost, not facial price.
What is the 2026 TVS scale for the CO2 tax?
The 2026 WLTP scale is progressive: €0 up to 4 g/km, €1 from 5 to 45 g, €2 from 46 to 53 g, €3 from 54 to 85 g, €4 from 86 to 105 g, €10 from 106 to 125 g, €50 from 126 to 145 g, €60 from 146 to 165 g and €65 per gram above. Each gram is taxed at the rate of its band.
How much TVS does a 120 g/km car cost in 2026?
For 120 g/km WLTP used all year, the CO2 tax is €383 (41 + 16 + 96 + 80 + 15 × 10). Add the pollutant tax: €130 for a Crit’Air 1 petrol car, €513 in total, or €650 for a diesel, €1,033 in total. The amount is prorated if the car is used for only part of the year.
Do electric company cars pay the TVS in 2026?
No. Vehicles powered exclusively by electricity, hydrogen or a combination of both remain exempt from the CO2 tax in 2026, and fall into category E, taxed at €0 for pollutants. An electric company car therefore triggers no annual tax.
Are hybrid cars exempt from the TVS in 2026?
No. The temporary hybrid exemption ended on 31 December 2024. Since 2025, both self-charging and plug-in hybrids are taxed like combustion cars. Example: a 30 g/km WLTP Crit’Air 1 plug-in hybrid bears €26 of CO2 tax and €130 of pollutant tax, €156 for a full year.
Does a SASU or EURL have to pay the TVS?
Yes. Only sole proprietorships (including micro-entrepreneurs) are exempt. A SASU, EURL or SARL that uses a passenger car for its business is liable, even if only the director drives it. A 130 g/km petrol car thus costs €813 for 2026.
When and how is the 2026 TVS filed?
Taxes due for 2026 are filed and paid in 2027: on schedule 3310-A of the VAT return filed in January 2027 under the standard VAT regime and for businesses not liable to VAT, or on the annual CA12 return (form 3517) under the simplified regime, filed in early May for a year ending 31 December.
Is the TVS deductible from taxable profit?
For a company subject to corporate income tax, no: article 213 of the CGI excludes these taxes from deductible expenses, so they are added back in the tax return. A business taxed under income tax can deduct them. They are not subject to VAT.
Are employees’ own cars reimbursed through mileage allowances taxed?
Yes, but in a reduced way. A weighting coefficient applies based on reimbursed kilometres: 0% up to 15,000 km, 25% from 15,001 to 25,000 km, 50% up to 35,000 km, 75% up to 45,000 km, 100% above. The total then benefits from a €15,000 reduction per business.
Is there a 2026 TVS simulator in Excel?
You can build one: one row per vehicle, one column per band (grams in the band × rate), a pollutant tax column and a days ÷ 365 column. The administration also publishes calculation help sheets (2857-FC-SD for CO2, 2858-FC-SD for pollutants). Test your spreadsheet with a known case: 100 g/km gives €213 of CO2 tax in 2026.
Sources
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