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Increase of Automotive Taxes in France
2025 is bringing big changes to car taxes in France—discover how the new malus auto rules will impact vehicle costs.
If you’re in the car business, you’ve probably heard of CO₂ car tax changes that are coming to France. The malus tax, which penalizes cars that pollute more or weigh too much, is about to get stricter.
Right now, the tax starts on cars that emit over 118 grams of CO₂ per kilometer. But the government plans to gradually lower this threshold to 113 grams in 2025, 106 grams in 2026, and just 99 grams by 2027.
We’ll now walk you through what the malus tax is, how it’s calculated, and the key changes coming in 2025, so that you can make smart choices for your dealership.
Malus tax in France - What is it?
The malus tax (or malus voiture) is a fee applied to cars with high CO₂ emissions or excessive weight. It’s applied at registration, and the cost increases with higher emissions and greater weight.
The idea behind the tax is to encourage people to choose greener options like electric vehicles hybrids, which are already popular with used car dealers and their customers.
For instance, under the new malus 2025 rules, a car with high emissions or over 1600 kg will face extra costs from both the car weight tax (taxe sur le poids des voitures) and the emissions tax. Essentially, higher costs could make buyers think twice before choosing inefficient vehicles.
Image source: L’argus
These changes are all part of France’s bigger effort to make car taxes (fiscalité automobile) greener and more eco-friendly.
Implementation of the malus tax in 2022
The malus tax isn’t a new concept—it was introduced back in 2008. However, it has evolved and become stricter over time.
Up until 2022, vehicle weight wasn’t part of the calculation, and the tax only applied to cars based on their CO₂ emissions.
In 2022, the French government introduced significant changes to the malus tax system to encourage greener choices even further:
- The emission threshold was lowered from 133 g/km to 128 g/km, meaning that more cars were taxed.
- The maximum tax was raised to 40,000€ for vehicles emitting over 224 g/km of CO₂, targeting high-pollution cars.
- A new weight tax also started, adding 10€ per kilogram for cars over 1,800 kg.
Despite these steps, there’s still room for improvement, so France has planned even stricter changes for 2025 and beyond.
Changes planned for 2025
Here are the specific changes in the car tax we’ll see from 2025 onwards:
- The CO₂ emissions threshold will drop to 113 g/km.
- The maximum tax will increase to 70,000€ for cars emitting 193 g/km or more.
- The weight tax will cover more cars as the limit drops from 1,800 kg to 1,600 kg.
In other words, many heavier vehicles like SUVs or family cars will face higher costs. With cars that go beyond emission and weight thresholds, there will be fines that increase progressively.
For instance, you’ll pay 50€ for being one gram over the limit, 150€ for 4 g/km over, and 260€ for 10 g/km over. Vehicles that exceed emissions significantly will pay hefty penalties reaching 1000€.
Calculating malus tax in 2025
There may be new rules starting from 2025, but you can still calculate the malus tax in advance. Here’s an overview of the tax rates by emissions and how it applies to hybrid and electric vehicles.
Overview of the tax rate by emissions
You can find a detailed table with Bareme Malus Ecologique 2025 on the L’argus website. If you’re looking for a bite-sized summary, here’s a simplified version with key ranges to give you an idea of how the tax progresses as emissions rise.
|
CO₂ Emissions (g/km) |
Tax (€) |
|
113–119 |
50–190 |
|
120–129 |
210–450 |
|
130–149 |
540–3,119 |
|
150–174 |
3,119–22,380 |
|
175–189 |
22,380–58,134 |
|
190–192 |
61,245–67,467 |
|
193+ |
70,000 |
So, the higher the emissions, the higher the tax rate, and the specific amount you’ll pay will depend on your vehicle’s exact CO₂ emissions.
Malus tax for hybrid and electric vehicles
Malus tax will treat hybrids and EVs differently than traditionally-fueled vehicles. Here’s a comprehensive breakdown of the costs these vehicle types will face.
- Fully electric vehicles will remain exempt from both the CO₂ and weight taxes. This makes them the best choice for avoiding additional costs under the new rules.
- Plug-in hybrids (PHEVs) will no longer get a full exemption unless their range exceeds 50 km in 100% electric mode. If they don’t meet this range, the weight tax will be applied, like with other vehicles.
- For hybrids and heavier plug-in hybrids exceeding the 1,600 kg threshold, a weight tax will apply. Every kilogram over this limit will be taxed.
Who will be affected by the new regulations?
Both private and business buyers purchasing vehicles in France will notice the effect of the new changes.
Families buying SUVs, rental companies, taxi services, fleet operators, and dealers specializing in high-emission or heavy vehicles will all face higher taxes for heavier vehicles.
For instance, a popular SUV like the Peugeot 5008 (CO₂ emissions around 140 g/km, weight over 1600 kg) will face a significant tax increase in 2025.
So, if you’re stocking several such models, you should adjust your pricing to account for the higher malus tax.
Exemptions from the malus tax
The malus tax does not apply to certain vehicles and buyers. Essentially, there are two exempt categories: disability-accessible vehicles and low-emission vehicles.
|
Disability |
Low-emission vehicles |
|
- Wheelchair-accessible vehicles |
- Fully electric or hydrogen fuel cell vehicles |
|
- Vehicles bought by individuals with a Mobility Inclusion Card (CMI) |
- Plug-in hybrids with over 50 km electric range. These vehicles will be subject to the weight tax, but will receive a reduction of 200 kg, capped at 15% of the vehicle’s total weight. |
|
- Vehicles for families with a minor holding a CMI for invalidity |
All in all, businesses won’t be able to benefit from exemptions. Still, it’s worth keeping these in mind so that you can guide your buyers toward options that minimize their tax obligations.
Will the malus tax affect your used car sourcing strategy in 2025?
To sum everything up, purchasing cars in France will become more expensive in 2025, and the updated malus tax will almost certainly impact the way you source cars for the French market.
With higher costs for high-emission and heavier vehicles, demand for these models may drop significantly.
So, what’s your safest bet?
Adapting your sourcing strategy is key. Consider prioritizing lighter, lower-emission vehicles, especially 100% electric vehicles. Stocking models that don’t incur hefty taxes will help your dealership stay in tune with a market shifting toward greener options.
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