TVS 2026: rates and calculation of company vehicle taxes

The TVS is now called the "taxes on the allocation of vehicles for economic purposes". In 2026, the air pollutant tax rises to €130 a year for a category 1 vehicle and to €650 for the most polluting vehicles. On top of this comes the annual incentive tax for fleets of at least 100 vehicles.

A fleet's tax bill goes up again this year, and it will rise once more in 2027. This guide gives you the current rates, how each tax is calculated, the filing calendar and the levers that genuinely bring the amount down.

What is left of the TVS in 2026?

The company vehicle tax disappeared under that name on 1 January 2022. It was replaced by two annual taxes: a tax on CO₂ emissions and a tax on vehicle age. Since 1 January 2024, the latter has given way to the tax on air pollutant emissions. Together they make up the taxes on the allocation of vehicles for economic purposes (formerly TVS).

Since 1 March 2025, a third tax has applied to large fleets: the annual incentive tax on the acquisition of low-emission light vehicles. For passenger cars and light commercial vehicles, it replaced the company fleet greening obligation introduced by the LOM law.

Tax	Who is liable	What sets the amount	2026 rate
Annual tax on CO₂ emissions	Any business that allocates passenger vehicles to its activity, except sole proprietorships	CO₂ emissions (WLTP or NEDC) or fiscal horsepower, pro rata to the allocation period	Progressive scale by band
Annual tax on air pollutant emissions	The same businesses	The vehicle's emission category	€0, €130 or €650
Annual incentive tax	Businesses whose fleet averages at least 100 light vehicles over the year	Gap to the low-emission vehicle target and renewal rate	€4,000 per missing vehicle, multiplied by the renewal rate

How much is the air pollutant tax in 2026?

It is the steepest increase in percentage terms this year: +30%. The amount is a flat rate, per vehicle and per year, based on three emission categories that depend on the vehicle's energy source and Euro standard. The 2026 finance act (Law No. 2026-103 of 19 February 2026) raised the rates, which had not changed since the tax was created in 2024.

Emission category	2025	2026	2027
E: electric, hydrogen or a combination of both	€0	€0	€0
1: petrol, gas or hybrid, Euro 5 and 6 standards	€100	€130	€160
Most polluting vehicles, including diesels	€500	€650	€800

Sources: entreprendre.service-public.gouv.fr for 2026 and 2027, BOFiP for 2025.

In other words, a vehicle in the most polluting category costs €150 more per year than in 2025. On a fleet of 45 vehicles of which 30 fall into that category, the increase reaches €4,500 a year for those 30 vehicles alone, with an unchanged fleet. The gap between a diesel and a recent petrol car reaches €520 per vehicle in 2026.

How is the CO₂ emissions tax calculated?

It is often the heaviest tax for combustion-engine vehicles. The amount depends on three factors.

• The measurement method: the WLTP scale applies to vehicles first registered in France from 1 March 2020. Older vehicles fall under the NEDC scale or, failing that, fiscal horsepower.
• The marginal rate per band: you add up the cost of each emission band, in g/km, up to the vehicle's level. The more it emits, the more each gram costs.
• The allocation period: the tax is calculated pro rata to the number of days the vehicle was allocated to the business's activity during the year.

The 2026 WLTP scale

CO₂ emissions (g/km)	Rate per gram in the band
Up to 4	€0
5 to 45	€1
46 to 53	€2
54 to 85	€3
86 to 105	€4
106 to 125	€10
126 to 145	€50
146 to 165	€60
166 and above	€65

Source: entreprendre.service-public.gouv.fr, which also publishes the NEDC and fiscal horsepower scales. The scale tightens again in 2027.

Example for a vehicle allocated for the whole of 2026: a petrol car emitting 120 g/km pays 41 + 16 + 96 + 80 + 150 = €383 in CO₂ tax, plus €130 in pollutant tax, for a total of €513. A diesel car emitting 150 g/km pays €1,733 in CO₂ tax and €650 in pollutant tax, for a total of €2,383.

Hybrids and E85 superethanol

• Hybrids: their exemption ended on 31 December 2024. Since 2025, they pay the CO₂ tax like other combustion-engine vehicles.
• E85 superethanol: since 1 January 2025, vehicles that run on it benefit from a 40% reduction in their CO₂ emissions, or two fiscal horsepower. The reduction does not apply above 250 g/km or 12 fiscal horsepower.
• 100% electric or hydrogen: these vehicles are exempt.

What is the annual incentive tax and who has to pay it?

It targets businesses whose fleet averages at least 100 light vehicles over the year. The threshold is assessed entity by entity, with no consolidation at group level. It penalizes a delay in bringing low-emission light vehicles into the fleet: the target is 18% in 2026, according to the BOFiP.

The amount is the product of three terms, according to the official filing notice: the annual rate, the gap to the target expressed as a number of vehicles, and the annual renewal rate of high-emission vehicles. The rate is €4,000 in 2026, after €2,000 in 2025, and will rise to €5,000 in 2027, under Article 28 of the 2025 finance act. The target does not apply to the whole fleet: it covers the vehicles that joined the fleet over the last four years.

The targets through 2030 and the step-by-step calculation are covered in our guide to the LOM law and fleet greening. The greening tax simulator applies the official formula to your fleet.

Is your business affected by the former TVS?

Almost every business is, whatever its legal form, as soon as it allocates passenger vehicles to its activity. The taxes cover:

• passenger cars (category M1);
• vans (category N1) that have, or can easily be fitted with, at least three rows of seats, and pick-ups (N1) with at least five seats;
• vehicles owned by the business or on long-term lease;
• vehicles of employees and executives whose mileage costs the business reimburses: the tax only applies above 15,000 km reimbursed in the year, with a sliding coefficient, and the amount due for these vehicles is reduced by €15,000.

Who is exempt?

• Sole proprietorships, for the vehicles allocated to their activity.
• Vehicles powered exclusively by electricity, hydrogen or a combination of both.
• Vehicles allocated to public passenger transport, farming, driving instruction or motor sport.
• Wheelchair-accessible vehicles.
• Vehicles intended for hire by a rental company, and courtesy vehicles lent temporarily by a repairer.
• Non-profit organizations exempt from VAT.

When and how do you file the vehicle taxes?

The taxes are filed and paid once a year, for the previous year. Under the standard VAT regime, they are filed on schedule No. 3310-A of the VAT return submitted in January. Businesses that are not liable for VAT use the same schedule, to be filed by 25 January. Under the simplified VAT regime, the taxes go on the annual VAT return No. 3517-S, filed in early May for a financial year ending on 31 December, or otherwise within three months of the year end.

So, under the standard regime, the taxes due for 2025 were filed in January 2026, and those for 2026 will be filed in January 2027; under the simplified regime, in May 2027. Payment is made with the return. The calculation is done vehicle by vehicle, with each vehicle's category, emissions and allocation period, using calculation sheets No. 2857-FC-SD (CO₂) and No. 2858-FC-SD (pollutants). The tax authorities may ask to see these details: without clean data, the return quickly turns into a project.

Start preparing it in December: each vehicle's registration certificate, the dates it entered and left the fleet and, for employees' vehicles, the record of kilometers reimbursed. That is the data the return needs.

How can you reduce your fleet's tax bill in 2026?

1. Electrify the most heavily taxed vehicles first. A 100% electric vehicle pays neither the CO₂ tax nor the pollutant tax. Replacing a diesel with an electric vehicle saves €650 a year on the pollutant tax alone, on top of the CO₂ tax.
2. Audit the fleet vehicle by vehicle. Rank your vehicles by annual tax cost: they are your renewal targets. Check each vehicle's category while you are at it: a recent petrol car wrongly declared among the most polluting costs €520 too much per year.
3. Remove vehicles that are no longer used. The tax runs as long as the vehicle is allocated. A vehicle that has sat idle for months costs a year of tax for nothing.
4. Plan ahead for the incentive tax. From 100 vehicles, every low-emission vehicle that joins the fleet narrows the gap to the 18% target, and every combustion-engine vehicle raises the renewal rate that multiplies the tax.
5. Think in total cost. Include the taxes in the total cost of ownership, along with the environmental penalty at purchase. The TCO calculator helps you compare.

How Dadycar helps you keep your fleet's taxes under control

Dadycar does not calculate these taxes and does not replace your return. It brings together the data the return needs and helps you reduce the taxable base.

• Vehicle record: fuel, CO₂ emissions in g/km, contract, dates of entry into and exit from the fleet. These are the inputs for the pro rata calculation.
• Dashboard: the fleet's energy mix and an ESG Sustainability tab, filterable by site and exportable. See cost allocation and ESG.
• Energy transition: the analysis identifies, vehicle by vehicle, those that can switch to electric. See energy transition.
• Anomalies: a rule flags, for example, a vehicle with no activity for 60 days, a candidate for return rather than another year of tax. See anomaly detection.
• Car policy (beta): a WLTP CO₂ cap, authorized powertrains and a LOM compliance check for 2026, 2027 and 2030 on upcoming orders. See car policy.

Does your fleet exceed 100 vehicles? Request a demo to review your fleet, or see our pricing.

Frequently asked questions about company vehicle taxes

Does the TVS still exist in 2026?

Not under that name. Since 1 January 2022, it has been replaced by two annual taxes: the tax on CO₂ emissions and, since 2024, the tax on air pollutant emissions, which succeeded the tax on vehicle age. Together they form the taxes on the allocation of vehicles for economic purposes, often called the former TVS, to which the annual incentive tax for large fleets is added.

How much is the air pollutant tax in 2026?

It is a flat rate, per vehicle and per year: €0 for an electric or hydrogen vehicle, €130 for a category 1 vehicle and €650 for the most polluting vehicles. These rates will rise to €160 and €800 in 2027.

Are hybrid vehicles exempt?

No. Their exemption ended on 31 December 2024: since 2025, they pay the CO₂ tax like other combustion-engine vehicles. Only vehicles powered exclusively by electricity or hydrogen remain exempt. E85 superethanol vehicles benefit from a 40% reduction in their emissions, except above 250 g/km or 12 fiscal horsepower.

Are commercial vehicles subject to the former TVS?

Only some of them. The taxes cover N1 vans that have, or can be fitted with, at least three rows of seats, and pick-ups with at least five seats, in addition to passenger cars. Other commercial vehicles are not passenger vehicles for the purposes of these taxes.

Is the tax due if a vehicle was only used for part of the year?

Yes, but pro rata. The amount is based on the number of days the vehicle was allocated to the business's activity. A vehicle that joined the fleet in July pays only about half the annual rate.

When do you file the vehicle taxes for 2026?

In January 2027 for businesses under the standard VAT regime, on schedule No. 3310-A, and by 25 January 2027 for businesses not liable for VAT, on the same schedule. Businesses under the simplified regime file them on their annual VAT return No. 3517-S, in early May 2027 for a financial year ending on 31 December. Payment is made at the same time as the return.

Further reading

• Low-emission zones (ZFE)
• Definition of fleet greening
• Vehicle benefit in kind

Official sources

• Service-public, factsheet F22203: vehicle allocation taxes (former TVS)
• BOFiP, BOI-AIS-MOB-10-30-20: CO₂ and pollutant emission taxes
• BOFiP, BOI-AIS-MOB-10-30-40: annual incentive tax
• impots.gouv.fr: filing and paying vehicle taxes
• Law No. 2025-127 of 14 February 2025 (2025 finance act), Article 28
• Law No. 2026-103 of 19 February 2026 (2026 finance act)