Usage value - Electric vehicle

An employee who receives a company car from their employer is required to pay a tax that currently stands at 2.48% of the car's value. However, if the company car is an electric vehicle, the state grants an additional benefit of 1,310 ₪. How does it work?

Usage value is a tax paid by an employee for receiving a company car from their employer. According to the law, the amount of tax the employee will pay is 2.48% of the car's value as new. To encourage the transition to electric vehicles, the state has set an additional benefit of 1,310 ₪.

For example: For using a car that costs 100,000 ₪ as new, the employee will pay 2,480 ₪. However, if the company car is an electric vehicle, an additional reduction of 1,310 ₪ will be given. In such a case, the usage value will be 1,170 ₪.

Granting the benefit creates a WIN-WIN situation for both parties: For the employee, the transition to an electric vehicle allows them to receive the benefit and thereby increase their annual income by several thousand shekels per year.

For the employer, the transition to an electric vehicle allows them to save thousands of shekels per year on car maintenance expenses.