Car buyersCompanies and employees: company car, taxes and VAT

Tutkat / Car Radar
OpenFor youFor businessUpdated 6.10.2026

The right car at the right price.

A total of 56,932 new passenger cars were first registered in January–September 2026, 6% more than a year earlier, and in September already 62% of them were fully electric cars. Even so, cars on the road are on average over 13 years old. For businesses, the page collects company car taxable values for 2026, tax-free mileage allowances and the rules on deducting VAT on vehicles.

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Situation now

Car Radar in numbers

New passenger cars56,932 pcsFirst registrations January–September 2026, +6 %; in September 6 984 (+16 %). Statistics Finland 6.10.2026
Share of fully electric cars62 %Of passenger cars first registered in September 2026; a further 11 % were plug-in hybrids. Statistics Finland 6.10.2026
Fully electric cars, January–September50,4 %The share of new passenger cars exceeded half for the first time; second highest in the EU after Denmark. Finnish Car Importers and Industry 1.10.2026
Average age of the passenger car fleet13,2 yearsPassenger cars in road use at the end of 2025, Statistics Finland
Used car sales642,971 pcsYear 2025, +4.1%; average age of cars sold 14.8 years, Finnish Information Centre of Automobile Sector
Operating tax on an electric car1,9 c/dayFor each started 100 kg in 2026 (2025: 1.5 c); diesel car 5.5 c. Ayvens / Veronmaksajat
Tax-free mileage allowance0,55 €/kmOwn car 2026; if a car benefit where the employer pays for fuel is in use, at most €0.11/km. Finnish Tax Administration / Veronmaksajat
Free car benefit, new car1,5 % + 285 €/monthAge group A (first registered 2024–2026) based on the new-acquisition price; usage benefit 1,5 % + 105 €/month. Finnish Tax Administration decision 13.11.2025
Car benefit deduction for a fully electric car−170 €/monthDeducted from the taxable value of a car benefit when CO₂ emissions while driving are 0 g/km. Finnish Tax Administration decision 13.11.2025
Charging benefit€30/monthTaxable value of employer-arranged charging for a fully electric car in 2026; plug-in hybrid €20/month. Finnish Tax Administration decision 13.11.2025

Most popular makes 2025

Newly registered new passenger cars by make for the whole of 2025 (71 888 cars in total).

MakeRegistrationsShare
Toyota11 37116,1 %
Volkswagen7 99911,3 %
Skoda7 08710,0 %
Volvo5 8548,3 %
Kia5 5367,8 %
BMW3 5195,0 %
Mercedes-Benz3 4784,9 %
Audi3 0504,3 %
Ford2 8844,1 %
Tesla2 6183,7 %

Source: Finnish Information Centre of Automobile Sector: Passenger car market annual review 2025

Most popular models January–April 2026

The most registered new passenger car models in the first four months of 2026. Newer model statistics published by an authority for the whole year are not yet available.

TemplateRegistrationsShare
Tesla Model Y9784,3 %
Toyota Yaris Cross9254,1 %
Volvo XC606172,7 %
Toyota bZ4X6152,7 %
Škoda Elroq6042,7 %
Škoda Enyaq5882,6 %
Toyota Yaris5752,6 %
Volkswagen ID.45442,4 %
Nissan Qashqai5392,4 %
Mercedes-Benz CLA5302,4 %

Source: Moottori.fi 11.5.2026 (Traficom registration data)

Rules and fees for motorists

Inspection intervals, tyre rules, vehicle tax 2026 and average taxable values of cars.

SubjectRule or valueSource
Inspection interval (new cars from 20.5.2018)1. inspection at 4 years of age, then every 2 years until the age of 10, and annually after thatTaloustaito
Obligation to use winter tyresNovember–March, when conditions require itTraficom
Minimum tread depth of a winter tyre3,0 mmTraficom
Minimum tread depth of summer tyres1,6 mmAutotalli.com
Friction tyre markingSnowflake marking (3PMSF) mandatory in winter conditions from DecemberTraficom
Vehicle tax base tax, lowest-emission band (0–82 g/km, NEDC)106,21 €/vTaxpayers of Finland
Propulsion tax, fully electric car1,9 c/day/100 kg (2026)Taxpayers of Finland
Propulsion tax, diesel5.5 cents/day/100 kgTaxpayers of Finland
Average taxable value of a new car49 400 € (2025)AuT / Finnish Tax Administration
Average taxable value of a used imported car32 700 € (2025)AuT / Finnish Tax Administration
Tax-free mileage allowance, private car0,55 €/km (2026)Taxpayers of Finland
VAT on a passenger carNot deductible if the car is used privately even to a minor extent; exceptions are taxis, rental, resale and driving instructionFinnish Tax Administration (Verohallinto)

Source: Traficom, Taxpayers Association of Finland, Finnish Automobile Information Centre, Taloustaito

Taxable values of company cars 2026

The monthly value of a car benefit = a percentage of the car's new purchase price + a fixed euro amount (or a kilometre-based value on the basis of a driving log). Decision of the Finnish Tax Administration of 13.11.2025; the calculation values are the same as in 2025.

Age group (year of first registration)Free company car benefitCar benefit (usage)
A (2024–2026)1,5 % + 285 €/month or 0,19 €/km1,5 % + 105 €/month or 0,07 €/km
B (2021–2023)1,2 % + 300 €/month or 0,20 €/km1,2 % + 120 €/month or 0,08 €/km
C (before 2021)0,9 % + 315 €/month or 0,21 €/km0,9 % + 135 €/month or 0,09 €/km
Fully electric car (0 g/km)−170 €/month from the taxable value−170 €/month from the taxable value
Replacement costImporter's recommended price − 3 400 €; accessories are added for the part exceeding 1 200 €Same
Charging arranged by the employer€30/month for a fully electric car, €20/month for a plug-in hybridSame
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Trips with odometer readings, mileage allowance 2026 and a monthly summary.

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Guides

Read before you decide

Buying a used car: checklist before and after the purchase

What to check on a used car, how buying from a dealer and from a private seller differ and what the buyer must take care of within seven days.

Read the guide →

Vehicle tax and inspection 2026: how much you pay and when to get your car inspected

Vehicle tax base tax and propulsion tax 2026, calculation examples for a diesel and an electric car, paying the tax in instalments and inspection intervals for passenger cars.

Read the guide →

Charging an electric car at home and in public: price and buying a charging station

How much it costs to charge an electric car at home and at a public charger in 2026, how to get a home charging station and which grants and deductions apply.

Read the guide →

Winter tyres 2026: when to change, studded tyre season and tread depth

Winter tyres 2026: when winter tyres must be fitted, when studded tyres may be used, the 3 mm tread depth requirement and the snow grip marking on friction tyres.

Read the guide →

Taxable value of a company car 2026: car benefit, use benefit and electric car

How the taxable value of a company car is calculated in 2026: age groups, free car benefit and usage benefit, the kilometre value and the €170 deduction for a fully electric car.

Read the guide →

Car bill of sale: template and what to record in it

Car bill of sale template: what to record in the bill of sale, how to note condition and defects, and how to report the change of ownership to Traficom.

Read the guide →

Logbook: tax authority requirements and template 2026

What does the tax authority require of a driving log? Mandatory entries, electronic or paper, mileage allowance 2026 and a copyable driving log template.

Read the guide →
Coming soon

Deadlines and dates

Car Radar reminds its subscribers of these by email.

  1. Winter tyre season begins

    Winter tyres must be used from November to March when road conditions require it. The normal studded tyre season also begins.

    Source
  2. Euro 7 emissions standard for new car models

    The EU's Euro 7 Regulation applies to new passenger car and van types from 29.11.2026 and to all new cars from 29.11.2027. The standard also covers brake and tyre emissions and battery durability.

    Source
  3. The tax on transport fuels falls

    The carbon dioxide tax on transport fuels falls from 56,8 euros to 51,3 euros per tonne (Government Proposal 132/2025, decided).

    Source
  4. Winter tyre season ends

    The obligation to use winter tyres (when road conditions so require) ends at the end of March. Studs may be used later too, if road conditions require.

    Source
Popular

Frequently asked questions: Car Radar

When should winter tyres be changed?

Winter tyres must be used from November to March when road conditions require it – there is no fixed changeover date. In the 2026–2027 season the obligation applies from 1.11.2026 to 31.3.2027, and the tread depth of a winter tyre must be at least 3,0 mm.

What is the smallest permitted tread depth for summer tyres?

The minimum legal tread depth is 1.6 mm for summer tyres and 3.0 mm for winter tyres. From a safety point of view, the recommendation is clearly more.

Does a friction tyre need the snowflake marking?

Yes. A friction tyre used in winter conditions must bear the snow-grip marking (mountain and snowflake, 3PMSF) from December onwards (Traficom).

How often must a car be inspected?

A passenger car taken into use after 20.5.2018 is inspected for the first time at 4 years of age, then every 2 years until the age of 10 and annually after that. You can check a car's next inspection in the Traficom service.

How much is the power-source tax on an electric car in 2026?

The drive power tax for a fully electric car in 2026 is 1.9 cents per day for every started 100 kilograms, compared with 5.5 cents for a diesel car. The drive power tax is paid in addition to the base vehicle tax; for details, see the Traficom and Finnish Tax Administration websites.

What do I do after a collision?

First make sure of safety: hazard lights on, wear a high-visibility vest and set up a warning triangle. If anyone is injured, call 112. Write down the parties' details and the vehicles' registration numbers, take photos and preferably fill in a joint accident report. Notify your own insurance company of the damage as soon as possible. If the other party leaves the scene, report it to the police.

What share of new cars are electric cars?

Of new passenger cars first registered in September 2026, 62 % were fully electric and 11 % plug-in hybrids (Statistics Finland). In January–September the share of fully electric cars was 50,4 % (Car Importers and Industry).

How is the taxable value of a company car calculated in 2026?

The taxable value is a percentage of the car's new purchase price plus a fixed euro amount. For a car taken into use in 2024–2026, the free car benefit is 1,5 % + 285 €/month and the limited car benefit 1,5 % + 105 €/month. The new purchase price is the recommended price minus 3 400 euros, and accessories worth over 1 200 euros are added to the price. 170 €/month is deducted for a fully electric car.

Can a company deduct the VAT on a passenger car?

As a rule, no. VAT on the purchase of a passenger car can be deducted only if the car is used exclusively for, for example, taxi service, rental, resale or driving instruction. Even minor private use removes the right to deduct. VAT on fuel and maintenance can be deducted for the share of business use. For a van, the deduction is made according to the share of use.

How much is the tax-free mileage allowance in 2026?

For a work trip made with their own car, the employer can pay tax-free at most 55 cents per kilometre in 2026. If the employee has a car benefit where the employer pays for fuel, the compensation is at most 11 cents per kilometre. In addition, there are increases, for example for a trailer and passengers.

Which is cheaper for the employee: a car benefit for use or a free car benefit?

The taxable value of a car benefit (usage) for a new car is €180/month lower than for a free car benefit, but the employee pays for fuel or electricity themselves. The car benefit (usage) is usually worthwhile if fuel or charging costs remain smaller than the difference in taxable values; the free car benefit if there is a lot of private driving (Taloustaito 27.1.2026). Calculate your own situation with the calculator.

How do an electric car and charging affect the car benefit in 2026?

For a fully electric car (CO₂ emissions in use 0 g/km), €170 per month is deducted from the taxable value of the car benefit. From 2026, charging arranged by the employer is a taxable benefit: €30/month for a fully electric car and €20/month for a plug-in hybrid (Finnish Tax Administration decision of 13.11.2025).

Tips

How to use the information

  1. Switch to winter tyres at the latest when the road turns slippery – the obligation applies from November to March depending on conditions, not on a fixed date.
  2. Check the snow grip marking (mountain and snowflake) on friction tyres: without it, friction tyres may not be used in winter conditions from December onwards.
  3. Measure the tread depth: at least 3,0 mm for a winter tyre and 1,6 mm for a summer tyre. The recommendation is clearly more.
  4. Calculate the tax costs of an electric car: the vehicle tax of a fully electric car is 1.9 cents a day for every started 100 kg in 2026.
  5. Check the next inspection and history of a used car in Traficom's service before buying.
  6. Compare the limited car benefit and the free car benefit: in a new car the taxable value of the limited benefit is 180 €/month lower, but the employee pays for fuel or electricity.
  7. VAT on a passenger car cannot be deducted if the car is used privately even to a small extent. Running costs are deducted for the share of business use, which must be demonstrable, for example with a driving log.
  8. The VAT on the purchase and running costs of a van can be deducted to the extent the vehicle is used in activity that entitles to deduction – unlike with a passenger car.
  9. For a fully electric car, €170/month is deducted from the taxable value of the car benefit. From 2026, charging arranged by the employer is a taxable benefit, €30/month.
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The information has been compiled from public sources on 6.10.2026. Always check the current terms from the original source. The information is not investment, loan or legal advice.