The German-speaking plateau represents Switzerland's economic heartland, where Zurich, Bern, and Aargau collectively generate over 40% of the nation's GDP. In 2025, these cantons navigate the complex balance between environmental policy and economic stability, each adopting distinct approaches to electric vehicle taxation that reflect their political and fiscal priorities.
Canton of Zurich (ZH): The Fragile Electric Vehicle Haven
Zurich, Switzerland's largest city and economic capital, has positioned itself as an electric vehicle-friendly canton, but this status faces growing political pressure in 2025.
Tax Basis
The canton's system combines engine displacement (Hubraum) with total weight, using a progressive step-rate structure that increases with both metrics.
Electric Vehicle Policy (2025)
Zurich currently maintains a 100% tax exemption for all-electric vehicles. This policy makes Zurich one of the most attractive cantons for EV ownership; a Tesla Model Y owner pays 0 CHF annually. This exemption has driven Zurich to have the highest density of new EV registrations in the country.
Future Outlook: The Looming Abolition
However, this exemption is politically endangered. With the highest density of new EV registrations in the country, the cantonal road fund is facing a revenue shortfall. A political coalition is actively pushing to abolish the exemption and introduce a weight-based levy to secure infrastructure funding. While the exemption holds for 2025, the trajectory points towards the reintroduction of taxation for EVs in the near term.
Canton of Bern (BE): The Expiration of Generosity
Bern presents a case study in time-limited environmental incentives, where electric vehicle benefits are deliberately designed to sunset.
Tax Basis
Bern calculates taxes based on total weight (Gesamtgewicht), a straightforward system that correlates vehicle mass with road impact.
Electric Vehicle Policy: The "Cliff Edge"
Bern offers a 60% discount on the standard weight tax for EVs, but strictly for the year of first registration plus three subsequent years. This creates a four-year window of reduced taxation.
Once this window expires, EV owners are subject to the full weight tax. Given that EVs are typically heavier than their combustion counterparts due to battery mass, owners of older EVs in Bern often face higher tax bills than owners of comparable gasoline cars.
Policy Rationale
This approach reflects Bern's philosophy of providing transitional support for emerging technology while ensuring long-term fiscal sustainability. The "cliff edge" design encourages fleet turnover and prevents permanent revenue loss.
Canton of Aargau (AG): The Interregnum
Aargau finds itself in a transitional phase, operating under an outdated system while preparing for comprehensive reform.
Current Tax Basis
The canton currently taxes based on "tax horsepower" (Steuer-PS) derived from engine displacement, an archaic system that bears little relation to modern vehicle characteristics or environmental impact.
Electric Vehicle Policy
Aargau currently taxes EVs based on a generic power calculation that does not offer significant incentives, making it one of the more expensive cantons for powerful electric cars.
Pending Reform: 2026 Implementation
The canton has finalized a new Vehicle Tax Act scheduled for implementation on January 1, 2026. This reform will transition the tax base to a 50/50 split between Total Weight and Power, modernizing the archaic "Steuer-PS" system.
The new system promises to be more equitable and environmentally conscious, though the details of EV treatment remain unclear. This creates uncertainty for current and prospective EV owners in Aargau.
Comparative Analysis: German Plateau in 2025
| Canton | Tax Basis | EV Treatment | 2025 Status |
|---|---|---|---|
| Zurich | Displacement + Weight | 100% Exemption (at risk) | Stable but politically challenged |
| Bern | Total Weight | 60% discount, 4-year limit | Time-limited incentives |
| Aargau | Tax-HP (Power) | Generic power calculation | Reform pending 2026 |
Economic and Mobility Implications
The German plateau's approach to EV taxation has significant implications for Switzerland's mobility transition:
- Zurich's Fragility: The potential abolition of EV exemptions could slow adoption in Switzerland's largest market, affecting national EV sales targets.
- Bern's Rationality: The time-limited approach provides a model for other cantons balancing environmental goals with fiscal responsibility.
- Aargau's Uncertainty: The transitional phase creates planning challenges for businesses and consumers in this economically important canton.
As Switzerland's economic powerhouse, the German plateau's tax policies will significantly influence the national trajectory toward sustainable mobility. The tension between Zurich's EV-friendly policies and growing fiscal pressures illustrates the challenges of balancing environmental ambition with economic reality.