The Finance Bill for 2026 , currently under discussion, marks an intensification of pressure on company vehicle fleets, with a planned tightening of taxes for internal combustion engines and heavy vehicles.
Even though the text has not yet been definitively voted on, the main guidelines have been laid out.
In this article, we decipher the measures of the 2026 Finance Bill and analyze their impact to help you understand the upcoming changes and give you the levers to activate to avoid additional costs related to taxation.
What should change for your fleet in 2026
A tightening of taxation on the acquisition of new vehicles in the fleet
From January 1, 2026, taxation will become stricter for company cars and passenger vehicles. Every purchase or lease renewal will be impacted by the new measures included in the draft Finance Bill.
A reduction in the threshold for triggering the CO₂ penalty.
The threshold for triggering the penalty will be lowered to 108 grams of carbon dioxide per kilometer (WLTP standard) in 2026, reaching 98 grams in 2028. In addition, the maximum ceiling of this tax would also be increased to a maximum of €100,000 for the most polluting vehicles, compared to €70,000 in 2025 and €90,000 in 2027.
This means that "standard" thermal or micro-hybrid models will fall into penalizing brackets sooner than expected.
| Indicator (WLTP) | 2024 | 2025 | 2026 | 2027 | 2028 (Draft Finance Bill 2026) |
| Triggering Threshold | 118 g/km | 113 g/km | 108 g/km | 103 g/km | 98 g/km 1 |
| Maximum ceiling (€) | 60 000 € | 70 000 € | 80 000 € | 90 000 € | 100 000 € |
The pivotal date is scheduled for July 1, 2026
The formula for calculating tax horsepower (PA) is expected to change mid-year. For vehicles first registered after July 1, 2026, the coefficient applied to the maximum net power (PM) will be modified, changing from 0.136 to 0.067.
This technical change will impact the final cost of the registration certificate (the registration document ), making the second half fiscally different from the first.
power scale
From 2028 onwards, the tax pressure is expected to increase on passenger vehicles , with taxation starting from 3 CV and becoming very heavy for executive models exceeding 10 or 11 CV.
Administrative power scale
| Fraction of administrative power (in CV) | Marginal rate (in €) |
| Up to 3 | 2 700 |
| From 4 to 6 | 3 900 |
| From 7 to 10 | 5 700 |
| From 11 to 15 | 6 600 |
| From age 16 | 8 100 |
Source: 2026 Finance Bill
Mass and classification: the case of electrified utility vehicles
Your fleet of commercial vehicles will undergo a significant change in the tax treatment of its total value, particularly if you have electric vehicles.
Many electric utility vehicles (originally classified as category N1) end up being reclassified as category N2 simply because of the extra weight due to their battery. This is a disadvantage, but it doesn't make sense from a tax perspective.
The draft finance law corrects this anomaly. These vehicles, "upgraded" solely for technological reasons, will now be treated as N1 vehicles for tax purposes and will benefit from an increased allowance of an additional 1,000 kg.
In practical terms, this preserves the tax competitiveness of your electric utility vehicles compared to equivalent thermal models.
From 2028 onwards, electric vehicles may become slightly less advantageous from a tax perspective. Another change is that, until now, electric vehicles have benefited from a complete exemption from the weight-based tax (tax on the vehicle's mass in running order).
From January 1, 2028, this exemption will disappear. They will only retain a 600 kg allowance.
| Engine | Until June 30, 2026 | From July 1, 2026 | 2027 | 2028 |
| Electric (BEV) | Exemption | Exemption | Exemption | 600 kg reduction |
| Plug-in Hybrid | Exemption | 200 kg reduction | 200 kg reduction | 200 kg reduction |
| Simple hybrid | 100 kg reduction | 100 kg reduction | 100 kg reduction | 100 kg reduction |
| Hydrogen | Exemption | Exemption | Exemption | Exemption |
What impact will this have on the annual cost of the fleet?
Beyond the acquisition cost, it is the annual holding cost that is very likely to increase, potentially impacting your margin.
Increase in the annual tax on air pollutants
The annual tax on pollutant emissions (one of the two components replacing the former company car tax) has been reorganized. It targets pollutant emissions and applies to company vehicles used in France. The aim is to encourage businesses to invest in very low-emission vehicles.
Trajectory 2026–2028: the rise in tariffs
The project provides for a gradual increase in the amounts for the most polluting vehicles and those in category 1 (Crit'Air 1).
- From 2026 onwards, the marginal rate will climb to €650.
- It will increase to €800 in 2027.
- current long-term lease contracts now
| Year | Crit'air E | Crit'air 1 | Most polluting vehicles |
| 2026 | 0 € | 130 € | 650 € |
| 2027 | 0 € | 160 € | 800 € |
| 2028 | 0 € | 190 € | 950 € |
The annual tax on CO₂ emissions
Beyond the tax on air pollutants, ownership taxation includes a second component: the annual tax on CO₂ emissions.
The 2026 Finance Bill tightens the trajectory. This tax is calculated at the marginal rate.
The projected scale for 2028 (WLTP)
| Here is the planned pricing schedule for 2028. Emissions bracket (WLTP) | Price per gram (2028) |
| Up to 40 g/km | 1,20 € |
| From 41 to 48 g/km | 2,40 € |
| From 49 to 80 g/km | 3,60 € |
| From 81 to 100 g/km | 4,80 € |
| From 101 to 120 g/km | 12,00 € |
| From 121 to 140 g/km | 60,00 € |
| From 141 to 160 g/km | 72,00 € |
| Above 161 g/km | 78,00 € |
A defined scope of application
The 2026 Finance Bill clarifies which vehicles must be counted. Companies are liable for these two taxes.
- taxes on air pollutants and
- taxes on CO2 emissions.
For vehicles that joined the fleet during the calendar year.
This therefore includes vehicles owned (purchased) as well as those leased or made available for a period of at least one year.
Special cases and registration fees
Certain categories of vehicles and geographical areas are subject to specific treatment that should not be overlooked in your forecasts.
Passenger transport vehicles (≥ 8 seats)
Companies owning shuttles and minibuses will see their benefits reduced. For vehicles with at least eight seats owned by a legal entity , the allowances (used to calculate the penalty tax) are being lowered. The allowance threshold will gradually decrease to 100 g/km for vehicles registered in 2028. At the same time, the weight-based tax allowance for these same vehicles will increase to 600 kg from January 1, 2026.
| Date of first registration of the vehicle | Reduction (g/km) | Discount (CV) |
| Before 2021 | 0 | 0 |
| Between January 1, 2021 and February 28, 2025 | 80 | 4 |
| Between March 1, 2025 and December 31, 2025 | 85 | 4 |
| 2026 | 90 | 4 |
| 2027 | 95 | 5 |
| 2028 | 100 | 5 |
How might these measures impact your costs?
Impact on the TCO of current and future contracts
The trap is the inertia of the contracts. When you order a vehicle in 2025 for 36 or 48 months, it will still be in your fleet in 2028.
This means that the contracts you sign today comply with the 2025 rules (threshold at 113 g/km), but these same vehicles will be hit hard by the increases in the annual tax on pollutants in 2026, 2027 and 2028.
Furthermore, your actual TCO (Total Cost of Ownership) will no longer match the one simulated at the time of ordering. The additional purchase cost (if registration occurs after July 2026) will be added to the increased ownership tax.
Exposure to taxes varies depending on the vehicles
The impact is not uniform. It affects certain categories in a targeted way.
- Executive vehicles and SUVs are the most exposed. They will be subject to the increased CO₂ penalty (from 98 g/km in 2028), the new weight-based scale and above all the tax on administrative horsepower which is skyrocketing for powerful vehicles (over 10 CV).
- For light commercial vehicles and converted vehicles, the focus is on weight. While the new tax classification allows heavy electric commercial vehicles (N2) to be treated as N1, heavy internal combustion engine models will not escape the overall tightening of regulations.
Replacing the most polluting vehicles with greener ones remains the best way to avoid tax penalties. Exemptions (and subsequent reductions) limit cost overruns.
Beware of "false friends": a very large electric SUV ordered in 2028 will no longer be totally exempt from weight tax, it will only benefit from a 600 kg reduction.
What optimization levers can be used to reduce the TCO of the fleet?
Faced with stricter taxation, inaction exposes you to a significant increase in your fleet costs. The only way to regain control of your Total Cost of Ownership (TCO) is to precisely analyze the impact of taxes to prevent them from eroding your profit margins.
1. Tax-oriented fleet audit
The first step is to conduct a comprehensive audit of your fleet . This will give you a clear picture of the tax impact on your costs and, more importantly, allow you to develop a strategy to anticipate increases in the coming years. This audit will help you identify the vehicles most at risk: company cars or commercial vehicles with internal combustion engines, whose ownership costs are expected to rise significantly between 2026 and 2028. You will then be able to isolate the models that will have the greatest impact on your company's tax burden.
2. A greening of the fleet
After the audit, you will know exactly which vehicles to replace and with which models, based on your employees' actual needs. You will be able to categorize your vehicles according to their tax liability and contract end date to make a rational decision.
The goal is to plan a gradual and intelligent replacement:
- Remove the most expensive vehicles before key deadlines
- Anticipate orders for electric or plug-in hybrid vehicles to secure current exemptions before they are reduced
- Factor into your leasing calculations the impact on the resale value of heavily taxed internal combustion engine vehicles.
FATEC helps you transform these regulatory constraints into a lever for economic performance
