From January 1, 2026, Denmark’s electricity tax will drop from 72.7 øre to just 0.8 øre per kWh.
For EV drivers, this means significantly lower running costs, no more complicated refund schemes – and a much simpler electricity bill.
Lower costs for every kilometer
The new tax level translates directly into savings for drivers. An EV that consumes around 2,000 kWh of electricity to cover 10,000 kilometers per year will save roughly 1,400 DKK in taxes alone. For commuters driving 20,000 kilometers and using about 4,000 kWh, the saving doubles to more than 2,800 DKK.
In other words, the more you drive, the more you save. And the benefit doesn’t stop at your car – the entire household’s electricity consumption will also enjoy the lower tax rate.
Currently, EV owners can get electricity taxes refunded through specific charging subscriptions. However, this requires an expensive contract with a charging operator and an approved home setup. Once the tax is reduced to just 0.8 øre, there will be virtually nothing left to refund – making these refund schemes obsolete.
This means simpler administration, fewer obligations, and no monthly fees just to make home charging affordable. EV drivers with solar panels, who were previously excluded from refund benefits, will also find the point irrelevant, as the tax is now negligible.
A political decision with a green edge
By lowering the tax, the government is making electricity – and EVs in particular – far more attractive compared to fossil alternatives. Power won’t just be cheaper, it will also be easier to manage without subsidies or complex rules.
For EV drivers, the bottom line is clear: driving will become cheaper, charging simpler, and refunds will be a relic of the past. There is, however, one important caveat: the reduced tax is currently only set to last for two years, until the end of 2027. What happens after that remains uncertain. If lawmakers do not extend the scheme, both EV owners and regular households may once again face higher electricity taxes.
This uncertainty raises questions about the long-term cost advantages of electric mobility and whether the economic appeal of EVs will remain as strong in the years ahead.
