Updated 10/08/2026
The weight-based penalty has been a hot topic, and many fleet managers are wondering if they still need to account for it for their electric vehicles. The answer for 2026 is clear: electric vehicles are exempt from both the CO2 penalty and the weight-based penalty, as confirmed by the 2026 Finance Act. If you have read articles announcing a tax on electric vehicles starting in July 2026, they were describing a proposal that was ultimately not adopted.
For a company, the stakes are clear: buying or leasing electric vehicles without additional registration tax costs, and being able to calculate the total cost of ownership with rules that do not change mid-year. Here is what applies today, what had been planned, and what remains to be monitored.
2026 Electric Vehicle Penalty: A Total Exemption
In 2026, a 100% electric car is subject to neither the CO2 penalty nor the weight-based penalty upon registration. The CO2 penalty is calculated based on the vehicle's emissions: an electric vehicle emits 0 g/km, resulting in a €0 charge. The weight-based penalty is calculated based on the mass in running order, but the law excludes electric and hydrogen vehicles (Article L. 421-79 of the CIBS, 2°, in its version resulting from Article 58 of the 2026 Finance Act, in effect since March 1, 2026). The principle is the same for both individuals and businesses.
An Exemption Without a Weight Threshold
There is no cap: a 1,200 kg city car and a 2,500 kg electric SUV are exempt in the same way. This is precisely what is surprising, as the weight of the batteries places many electric models above 2 tons, a level where a combustion-engine vehicle of the same mass would be taxed at €30 per kilo over 2,000 kg, with kilos between 1,500 and 1,999 kg taxed at €10 to €25.
What about large electric SUVs?
Heavy electric SUVs are also exempt from the weight-based penalty in 2026. The rule does not distinguish between models: only the powertrain matters. For a corporate fleet, this means that a high-end electric vehicle incurs no additional tax costs at purchase related to its mass. Other taxes and rules specific to company vehicles should, of course, still be checked on a case-by-case basis.
What the Proposed Weight-Based Penalty for Electric Vehicles Included
The confusion stems from an actual text. The 2025 Finance Act, passed in February 2025, planned to end the exemption for electric cars starting July 1, 2026. Until the vote on the 2026 Finance ActThat was indeed the trajectory in effect on paper, which explains the numerous articles that reported it.
A 600 kg allowance
The planned mechanism granted electric vehicles a flat-rate allowance of 600 kg on their taxable weight (Act No. 2025-127 of February 14, 2025, Finance Act for 2025, Article 27). The 1,500 kg taxation threshold was thus shifted to approximately 2,100 kg for these vehicles: a 2,200 kg model, for example, would have been taxed on the 100 kg excess.
Which electric vehicles would have been affected?
Only electric vehicles exceeding this threshold that did not have a sufficient eco-score would have been affected. The eco-score measures a vehicle's carbon footprint, i.e., the production of materials, assembly, and transport to the place of distribution, excluding usage and end-of-life. "Low carbon footprint" vehicles that met the minimum score remained exempt. The measure therefore targeted heavy models with an insufficient eco-score.
Why this measure was abandoned
The project never came into effect. During the review of the 2026 budget, this measure was not retained, and the Finance Act for 2026 (Act No. 2026-103 of February 19, 2026) repealed the planned provision (Article 58, which rewrote Articles L. 421-78 to L. 421-79-1 of the CIBS). The rules of the Code of Taxes on Goods and Services (Articles L421-71 to L421-81-1) continue to target internal combustion and hybrid vehicles, not electric ones.
According to L'Automobiliste (February 3, 2026), the reasons cited include the weight of batteries, which pushes many models above the thresholds, the slowdown in the electric vehicle market, and the risk of sending a "mixed signal" to manufacturers investing in electrification. These motivations are reported by the press and are not found in the text of the law itself.
What about 2027? What the draft finance bill says
The government presented the 2027 draft finance bill on October 1, 2026. This text, registered with the National Assembly, does not call into question the exemption for electric vehicles. Its Article 28 amends Article L. 421-79 of the CIBS: "low-carbon vehicle" becomes "sustainable and resilient vehicle," without changing the exemption for electric vehicles provided for in paragraph 2 of the same article. Its explanatory memorandum indicates that the Government "supports the overall stability of automotive taxation in 2027, particularly for the scales currently in force." Parliamentary debate is ongoing: the text may still be amended.
Several points are worth monitoring for businesses:
- The eco-score : Article 28 of the draft adds a resilience criterion to it: less favorable treatment is reserved for products for which the European Commission has identified a supply dependency on a country outside the European Union. The explanatory memorandum classifies batteries among the products concerned ("objectified" dependency), with 50% of supplies coming from China.**
- VAT on vehicles provided to an employee in exchange for rent : Article 25 stipulates that, under certain conditions, the VAT base cannot be lower than the "normal value" of the service when the rent paid by the employee or executive is lower.**
- Non-plug-in hybrids : in 2026, all will benefit from the 100 kg allowance, whether they are micro-hybrids (less than 30 kW) or others (30 kW and more). The 2026 Finance Act already removes this allowance for micro-hybrids in 2027. Article 25 of the draft only changes their definition: CO2 emissions (125 g/km or more) would replace power.
These provisions are proposals and are subject to change during parliamentary debates.
What this means for corporate fleets
For a fleet manager, the exemption simplifies the calculation: in 2026, no CO2 penalty or weight penalty needs to be provisioned for electric vehicles, regardless of the model chosen.
Buying or leasing without a penalty
Whether the vehicle is purchased or leased, the tax is due upon first registration. For an electric vehicle, it is zero. The purchase price or rent therefore does not include any tax surcharge related to weight or emissions.
What about long-term leasing?
In long-term leasing, for a combustion or hybrid vehicle, the way the penalty is passed on to the lessee depends on the lease agreement; for an electric vehicle, there is no penalty. No official text addresses this point.
A lever for total cost of ownership
The absence of a penalty adds to other factors already favoring electric vehicles for businesses. To accurately compare powertrains over the ownership period, our analysis of the profitability of electric vehicles in corporate fleets details the items to consider, from energy to maintenance.
2026 weight penalty: what applies to other powertrains
The exemption for electric vehicles does not apply to the rest of the market. Internal combustion and hybrid vehicles are subject to the weight penalty starting at 1,500 kg, based on a progressive scale: €10 per excess kilo between 1,500 and 1,699 kg, then €15, €20, and €25 per bracket, up to €30 per kilo from 2,000 kg onwards. Each rate applies to the portion of mass within that bracket.
Plug-in and non-plug-in hybrids
Plug-in hybrids with more than 50 km of electric range benefit from a 200 kg allowance, capped at 15% of the vehicle's mass. In 2026, non-plug-in hybrids benefit from a 100 kg allowance, whether they are micro-hybrids (less than 30 kW of electric power) or others (30 kW and over). The 2026 Finance Act already eliminates this allowance for micro-hybrids in 2027. The 2027 Finance Bill only changes their definition: CO2 emissions (125 g/km or more) would replace power output.
Table: 2026 weight-based penalty by engine type
The examples only take into account the weight-based penalty : the CO2 penalty is added for vehicles that emit CO2. Light commercial vehicles are largely exempt from this system, with the exception of some pickups and vehicles with three rows of seats.
FAQ
Do electric cars pay the weight-based malus in 2026?
No. In 2026, 100% electric cars are exempt from both the weight-based malus and the CO2 malus, whatever their weight, including large SUVs. The plan to tax them from 1 July 2026 was dropped by the 2026 Finance Act.
Why was there so much talk about the weight-based malus for electric cars?
Because the 2025 Finance Act, voted in February 2025, planned to end their exemption from 1 July 2026, with a 600 kg allowance. Many articles reported this announcement before the measure was dropped, which fuelled the confusion.
How can you avoid paying the weight-based malus?
The simplest way is to choose an electric or hydrogen car, both exempt in 2026. Other powertrains pay nothing below 1,500 kg. Above that, plug-in hybrids with more than 50 km of electric range get a 200 kg allowance, and non-plug-in hybrids a 100 kg allowance in 2026. Families with at least three children also get a 200 kg allowance per child, limited to one vehicle with at least 5 seats per household (Article L. 421-81 of the CIBS).
What is the weight-based malus scale for 2026?
For combustion-engine and hybrid vehicles: €0 below 1,500 kg, then €10 per excess kilo from 1,500 to 1,699 kg, €15 from 1,700 to 1,799 kg, €20 from 1,800 to 1,899 kg, €25 from 1,900 to 1,999 kg and €30 from 2,000 kg. Each rate applies to the fraction of mass within the bracket.
From what weight does a combustion-engine car pay the weight-based malus in 2026?
From 1,500 kg of mass in running order. This lower threshold has applied since 1 January 2026, with allowances for plug-in hybrids (200 kg) and non-plug-in hybrids (100 kg).
Could this exemption be called into question after 2026?
The draft 2027 Finance Bill, presented on 1 October 2026, does not call the exemption for electric cars into question. The parliamentary debate is under way and the text can still be amended, so its progress should be followed before drawing conclusions for 2027.
Key takeaways
- Electric cars are exempt from the CO2 penalty and the weight penalty in 2026, with no weight threshold, including for large SUVs.
- The proposed weight penalty for electric vehicles, planned for July 1, 2026, with a 600 kg allowance, was abandoned by the 2026 Finance Act.
- The weight penalty applies to internal combustion and hybrid vehicles starting at 1,500 kg, with allowances of 200 kg (plug-in hybrids) and 100 kg (non-plug-in hybrids).
- For fleets, buying or leasing an electric vehicle incurs no registration penalty in 2026.
- The 2027 budget bill does not challenge the exemption for electric vehicles, but parliamentary debate is ongoing: this article will be updated once the budget is adopted.
Learn more
- Profitability of electric vehicles in corporate fleets
- Subsidies for installing charging stations in businesses
Sources and references
- Act No. 2026-103 of February 19, 2026, Finance Act for 2026, Article 58, Légifrance
- Act No. 2025-127 of February 14, 2025, Finance Act for 2025, Article 27, Légifrance
- Draft Finance Act for 2027, articles 25 and 28 (text submitted to the National Assembly on October 1, 2026), budget.gouv.fr
- Code of Taxes on Goods and Services, articles L. 421-75, L. 421-77, L. 421-78, L. 421-79, L. 421-79-1 and L. 421-81, Légifrance
- Environmental Code, article L. 224-6-6 (carbon footprint and eco-score), Légifrance
- L'Automobiliste, "Malus: why electric cars remain exempt in 2026" (February 3, 2026)
Article written in October 2026 based on texts available at that date. The information is verified as of the date of publication and does not constitute legal or tax advice. The 2027 Finance Bill may be amended during parliamentary debate.
