What is a benefit car?

A service car used privately is classified as a benefit car. This is a form of remuneration for work that is given in a form other than money. Benefit cars are taxable, unlike some other benefits such as wellness allowances. When choosing a benefit car, it's important to consider the car's fuel efficiency, maintenance costs, and preferential value.

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Calculation of preferential value

The benefit value is the amount you pay tax for and is calculated on a flat rate basis. This value affects how much tax is deducted from your salary. On average, a tax rate of 32% is applied, but this can vary depending on your council tax and income level.

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Example of calculation

Let's say the preferential value of your company car is 7,500 kr. To calculate the tax that will be deducted from your salary, multiply this value by your local tax rate. If we assume that your tax rate is 32% (0.32), the calculation is as follows: 7,500 kr x 0,32 = 2,400 kr. This means that SEK 2,400 will be deducted from your monthly salary in taxes for the benefit car. For people on higher incomes, where the marginal tax rate can be up to 55%, the same benefit value would result in a higher tax burden.

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Tax Agency Car Benefit Calculation

The easiest way to calculate the benefit value is to use Tax Agency's online tool. Here you fill in information such as car model, year of manufacture, tax and the value of additional equipment to get the preferential value. To use this tool and get an accurate calculation of the preferential value of your car.

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The main rule of calculation

The value of the benefit is based on four elements: the price base amount for the tax year, the interest-related amount, the price-related amount (the new car price), and the vehicle's vehicle tax.

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New car price

The new car price is an important part of the calculation and is based on the price when the car was introduced on the Swedish market. This price is set by the Swedish Tax Agency.

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Optional equipment and eco-cars

The value of additional equipment not included in the price of the new car shall be added to the calculation. Green cars, such as electric cars and plug-in hybrids, receive a reduced preferential value in relation to the car's new price.

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Reduced preferential value for long-haul drivers

If you drive more than 3,000 miles in the service over a year, your benefit value can be reduced by 25%.

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Example calculation for electric car

For an electric car with a new car price of SEK 720,000 and additional equipment valued at SEK 75,000, a flat rate deduction of SEK 350,000 is made. This results in a preferential value that is lower than that of an equivalent fossil-powered car.

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Summary

Understanding and calculating the benefit value of a car can be complicated, but it is important for understanding the tax implications of having a benefit car. With the new rules for 2023 and tools such as the Tax Agency's car benefit calculation, you can easily get an overview of what your benefit car will cost you.

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Benefit Car FAQ

How is the preferential value of a car calculated?

The preferential value is calculated based on the new price of the car and its fuel type. For petrol and diesel powered cars, a scale based on the price of the car is used. Electric cars and plug-in hybrids often have a lower tax rate due to their environmentally friendly nature. There are online tools that can help with this calculation.

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What factors should I consider when choosing a preferential car?

When choosing a benefit car, you should consider the car's fuel efficiency, maintenance costs, preferential value, and how well it fits your personal and professional needs. It's also important to think about the environmental impact of your car, especially if you're interested in reducing your carbon footprint.

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What is fuel benefit and how does it affect the benefit value?

Fuel benefit is an additional benefit given when the employer accounts for all or part of the fuel costs of a benefit car. This value is added to the total benefit value and taxed as part of the employee's income. It increases the total benefit value and thus the taxable income of the employee.

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