According to TV2, the Danish government has decided to gradually raise the tax on registering electric cars starting in 2027, after postponing the increase that was scheduled to begin earlier for a year.
The increase will begin at the start of 2027.
The new rules will come into effect from January 1, 2027, after tax levels remained frozen during 2026.
Under the new rules, the exemption threshold for registration tax will decrease from approximately 419,300 kroner in 2026 to approximately 366,300 kroner in 2027, meaning that cars exceeding the new threshold will be subject to a higher registration tax.
The tax will gradually increase until 2036
Denmark has set out a phased path for introducing a registration tax on electric cars, with the tax to gradually increase until the system is fully implemented in 2036.
According to the Danish Ministry of Taxation, the tax will increase by up to 8% annually until 2030, before the increase will continue gradually in subsequent years.
Postponing implementation for a year means that the levels that were supposed to be implemented in 2026 will be implemented in 2027, and the levels planned for 2027 will be moved to 2028, and so on until full implementation is achieved in 2036.
These are the new exemption limits
According to figures provided by the Ministry of Taxation, the exempt limit is approximately 419,300 kroner in 2026, decreasing to 366,300 kroner in 2027, then to 334,500 kroner in 2028, 311,900 kroner in 2029, and 295,500 kroner in 2030.
These limits are subject to the general rules for adjusting tax brackets, and therefore the actual values may change in subsequent years.
Cheaper cars will not be directly affected
The cost of all electric cars will not increase by the same amount.
TV2 explains that lower-priced electric cars will remain at levels that do not subject them to significant registration tax for some time. For example, a car worth around 275,000 kroner, such as the Kia EV3, will not be affected by the new registration tax until 2030, when the tax is expected to reach approximately 690 kroner.
The impact of the increase will be more pronounced on higher-priced electric vehicles, which exceed the new exemption limits.
More than 700,000 electric cars in Denmark
The tax increase comes at a time when the number of electric cars in Denmark has exceeded 700,000.
According to TV2 business analyst Ole Krohn, the government expects the number to rise in the future to around 1.5 million electric cars.
Why was the increase postponed?
The progressive tax system dates back to a political agreement reached in 2020 with the aim of setting a gradual path for introducing electric vehicles into the registration tax system.
Several parties participated in the agreement, including the Radical Party (Radikale Venstre), the Socialist People's Party (Socialistisk Folkeparti), and the Unity List (Enhedslisten).
The increases were originally scheduled to begin earlier, but the government and political parties later agreed to postpone their implementation for a year.
The future of the car tax system is still under consideration.
A group of experts appointed by the government is studying the future of Denmark’s car tax system, including how to make electric cars accessible to different income groups and designing a new tax system.
Tax and Growth Minister Jakob Engel-Schmidt confirmed that the government wants to make a fundamental change to the car tax system, but is waiting for the recommendations of the expert group before making decisions on the new system. Thus, the increase in the registration tax for electric cars will begin in 2027 according to the current plan, while the long-term future of the car tax system is still under study.
