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VIENNA – Motorists in Austria are facing higher costs from January 1, 2027, as a series of new regulations take effect. The changes include increased vehicle taxes on new petrol and diesel cars, a more expensive motorway vignette, and new taxation rules for employees using electric company cars for private purposes.
The measures are expected to affect a wide range of drivers, particularly those planning to purchase a new combustion-engine vehicle and workers who benefit from electric company cars.
Higher NoVA Tax for New Petrol and Diesel Cars
One of the most significant changes concerns the Normverbrauchsabgabe (NoVA), Austria’s vehicle purchase tax, which is calculated based on a car’s CO2 emissions.
From January 2027, the CO2 deduction threshold used in the tax calculation will be reduced from 91 grams to 88 grams per kilometre. As a result, the NoVA rate for many vehicle models will increase by one percentage point.
Other elements of the tax formula remain unchanged. The malus threshold stays at 155 grams of CO2 per kilometre, with an additional €80 charged for each gram above that level. The maximum tax rate of 80 percent and the €350 deduction amount also remain in place.
The impact can be significant. A new car with a net purchase price of €30,000 and emissions of 136 grams of CO2 per kilometre will face a NoVA charge of €2,650 in 2027, compared with €2,350 under the current rules. For a vehicle costing €40,000 and emitting 163 grams of CO2 per kilometre, the tax burden will rise from €5,890 to €6,290.
Buyers may still be able to benefit from the lower 2026 rates if they sign an irrevocable written purchase contract by November 30, 2026, and receive the vehicle before April 1, 2027.
Fully electric cars and hydrogen-powered vehicles emitting zero grams of CO2 per kilometre will continue to be exempt from NoVA.
Motorway Vignette Price Increase
Drivers using Austria’s motorway network will also face higher costs.
The annual motorway vignette for passenger cars is expected to increase from €106.80 to approximately €108.90 in 2027, representing a rise of around two percent. The federal government has reportedly softened an originally planned larger price increase.
In addition, Austria will phase out the traditional adhesive vignette. Beginning in 2027, the annual vignette will only be available in digital form.
Motorists who purchase their 2027 vignette before December 31, 2026, are expected to secure the current price of €106.80, potentially saving around €2.
New Tax Burden for Electric Company Cars
A major change will affect employees who use electric company vehicles for personal travel.
Until now, private use of electric company cars has been exempt from benefit-in-kind taxation. From January 1, 2027, a taxable benefit will be introduced for the first time.
The monthly taxable amount will be set at 0.375 percent of the vehicle’s acquisition cost, capped at €180 per month. From 2028, the rate will rise to 0.625 percent, with the monthly cap increasing to €300.
The rule will apply not only to newly acquired electric company cars but also to vehicles already in use or under lease agreements.
For example, an electric company car with a purchase price of €42,000 would result in a monthly taxable benefit of €157.50 in 2027. Since this amount is subject to income tax and social security contributions, experts estimate a reduction in net pay of roughly €75 to €80 per month for an employee earning €3,000 gross per month. From 2028, the monthly impact could increase to approximately €125 to €130.
Fuel Prices Still Uncertain
The outlook for fuel prices in 2027 remains unclear.
Austria’s national CO2 pricing system, introduced in 2022, currently adds costs to petrol and diesel. The carbon price is set at €55 per tonne in 2025 and 2026, equivalent to approximately 15 cents per litre of petrol and 16.5 cents per litre of diesel when VAT is included.
The European Union’s ETS 2 emissions trading system for buildings and transport was originally intended to replace the national scheme in 2027. However, its implementation has been postponed until 2028, meaning Austria’s current CO2 pricing framework will remain in force through the end of 2027.
The government has not yet announced what CO2 price will apply next year.
Uncertainty also remains over the future of temporary fuel-price relief measures introduced in late 2026. These include a reduction in mineral oil tax and limits on fuel company margins, providing motorists with a theoretical saving of around 12 cents per litre. Whether these measures will continue beyond the current review period has not yet been decided.
Should the relief package be abolished entirely, fuel prices could theoretically rise by about 12 cents per litre.
Vehicle Tax Remains Unchanged
Not all motoring-related costs are set to increase.
Austria’s motor-related insurance tax, commonly referred to as the vehicle tax, will remain unchanged in 2027. The tax has applied to electric vehicles since April 2025.
Higher Costs Loom for Many Drivers
While some details, particularly regarding fuel prices, remain uncertain, several cost increases are already on the horizon. Buyers of new petrol and diesel vehicles will face higher purchase taxes, electric company car users will lose a key tax advantage, and motorway users will pay slightly more for their annual vignette.
For many motorists, the start of 2027 is set to bring a noticeable increase in the cost of driving.
- source: heute.at/picture: pixabay.com
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