Road tax

Road tax, known by various names around the world, is a tax which has to be paid on a motor vehicle before using it on a public road.

National implementations

Australia

All Australian states and territories require an annual vehicle registration fee to be paid in order to use a vehicle on public roads; the cost of which varies from state to state and is dependent on the type of vehicle. The fee is colloquially known as rego (pronounced with a soft g, short for registration).

Belgium

Passenger cars pay a registration fee based on the engine displacement and power output (degressive towards 2014 (66% in 2012, 33% in 2013, 0% in 2014) and environmental criteria such as CO2 g/km output (increasingly towards 2014). The more CO2 g/km the car produces, the higher the fee will be. (https://belastingen.fenb.be/vfp-portal-pub2-web/simulatieVerkeersbelasting.html#/q/top). Every year, the plate number owner has to pay the annual road tax contribution. This tax is based on the engine displacement (0-799cc = fiscal HP 4, above 800cc per 200cc 1 class higher) (http://koba.minfin.fgov.be/commande/pdf/Fold_verkeersbelast_2010_2011.pdf). Due to CO2 based regulations, diesel cars with above average displacement (>2000cc) are favorised, and petrol cars with bigger displacements are put at a disadvantage). A supplementary annual fee has to be paid for cars that run on LPG/CNG (0-799cc: €84/year, 800-2499cc €148/year and >2500cc €208/year) to compensate financial loss for the state due to the absence of excise at the pump.

Brazil

In Brazil, the states may collect an annual Vehicle Licensing Fee (Taxa de Licenciamento Veicular) which has a fixed value for each vehicle category determined by each state. In addition, each state may impose a Vehicle Property Tax (Imposto sobre a Propriedade de Veículos Automotores), with a rate up to 4%.

France

In France, the vignette was abolished for private vehicles in 2001 and was replaced by a tax on toll road operators at a rate of €6.85 per 1000 km travelled. In addition a tax is levied on vehicles registered to companies. Since 2006 the tax is levied according to CO2 emissions ranging from 2 euros per gramme to 19 euros per gramme.

Germany

In Germany, the Motor Vehicle tax (Kraftfahrzeugsteuer) is an annual tax on all vehicles. It ranges from 5 eur per 100cc to 25 eur per 100cc for petrol engines and 13 eur to 37 eur for diesel engines. Vehicles first registered before June 30, 2009 are taxed according to engine displacement and national/European emission class, whereas vehicles which were registered after that date are taxed solely based on CO2 emission in grams per km (g CO2/km).

Hong Kong

In Hong Kong, the license fee is according to the category (passenger cars, goods vehicles, taxis, etc.) of the vehicle first. Then, for passenger cars (known as private cars), it is calculated by the engine size. The lowest tax band is under 1500cc, then the tax band changes at 2500cc, 3500cc and 4500cc. Due to this system of license fee, most of 1600cc to 1800cc car models cannot sell well. Most people prefer 1500cc for compact cars. Due to this reason, some manufacturers provide only the 1500cc version of their compact cars to Hong Kong market such as Toyota Corolla and Nissan Tiida. Both of these two cars only have 1500cc version available.

By engine volume (HKD) ≤ 1500 cm3 3,929 1501 cm3- 2500 cm3 5,794 2501 cm3- 3500 cm3 7,664 3501 cm3- 4500 cm3 9,534 >4500 cm3 11,329

Hungary

In Hungary, since 2009 this tax is based on the vehicle's engine performance and the vehicle's age. Before this so-called performance tax, this tax was based on the vehicle's weight and unofficially it was called a weight tax.

India

In India, road tax is imposed by both the central (customs duty,Central excise, and central sales tax), state government (motor vehicles tax, passengers and goods tax, state VAT, and toll taxes) and local bodies (octroi). At the time of purchase of the vehicle, the central excise duty, central sales tax and state VAT are levied at the rates of 10%,3%, 2% and 12.5% respectively. The motor vehicles tax is calculated on the basis of various factors including engine capacity, seating capacity, unladen weight and cost price.It is also priced in the type of vehicle used such as trucks,vans, cars,two wheelers etc. for toll roads. In India andhrapradesh road tax is 25% on vehicle cost

Ireland

Motor tax is payable as an annual duty (subject to exemptions) in Ireland. Prior to 2008 the annual tax was levied on the engine size ranging from €199 pa for an engine under 1,000cc to €1,809 for cars with an engine over 3,001 cc. Since July 2008, the tax rates for new private cars are based on the vehicle's carbon dioxide emissions. The tax bands for CO2 emissions range from €170 pa with emissions of 0-80 g to €2,350 pa with emissions over 225g. Commercial vehicles including 5 seater large 4WD vehicles no matter what size engine or co2 is €333 the highest rate is €2345 for passenger vehicles. All Vintage vehicles are €56. An Irish vehicle is known as vintage when it reaches 30 years old.

Japan

A tax is collected under the Local Tax Act of 1950 that is paid every May based on the engine's displacement. The tax is then determined by whether the vehicle is for business or personal use, based on exterior dimensions and engine displacement as defined under dimension regulations. The tax to be paid is then based on the engine's displacement starting with engines below 1000cc, and increasing at 500cc intervals to a top bracket of 6000cc and above. Personal vehicles pay more than vehicles identified as business use. Kei cars (Japanese vehicles with 660cc engines and reduced exterior dimensions) have significant tax merit because its tax is about quarter of 1000cc car. The legislation is similar to a European approach to taxing engine horsepower, while the Japanese approach taxes engine displacement. If the car has been certified as a low emissions vehicle, under the Japanese low-emission vehicle certification system, the tax obligation is reduced.

Automobile Tax (exterior dimensions)

• Road Tax for regular 4-wheel vehicles (Metropolitan/Prefectural Tax) Vehicle plates and taxes
  • 40/400 and 50/500 Japan license plates: ¥7,500
  • 33/300 license plates (4.5 liter engines and below): ¥19,000
  • 33/300 license plates (4.6 liter engines and above): ¥22,000
  • 11/100 license plates: ¥32,000
• Light Motor Vehicle Tax
  • Road Tax for mini-cars and motorcycles (City/Ward Tax)
  • Kei car: ¥3,000
  • Motorcycles up to 125cc: ¥500
  • Motorcycles 126cc and above: ¥1,000

Automobile Weight Tax

On May 31, 1971 until March 31, 2010, the Japanese government passed a law creating the Automobile Weight Tax (Japanese). It was modified March 31, 2010, and again April 1, 2010 one day later. The tax is paid every year in conjunction with the engine displacement based road tax. The weight determination is made in metric tons. The tax increments are found from the original Japanese language article here.

Vehicle Class	Tax Amount
motorcycle	¥1,500
kei car	¥2,500
passenger car	¥2,500 per .5 ton
truck	¥2,500 per ton

As of April 1, 2010, the tax requirements are as follows. The determination of whether the vehicle is for business or personal use has been added, similar to the engine displacement regulations:

Vehicle Class	Personal Use	Business Use
motorcycle	¥2,200	¥1,600
kei two wheel	¥5,500	¥4,300
new kei car	¥11,300	¥8,100
renewal kei car	¥3,800	¥2,700
passenger car	¥5,000 per .5 ton	¥2,700 per .5 ton
truck (commercial vehicle)	¥3,800 for 1 ton, ¥7,600 for 2 tons, ¥11,400 for 2.5 tons, ¥15,000 for 3 tons, ¥5,000 each additional ton,	¥2,700 for 1 ton
bus	¥5,000 per ton	¥2,700 per ton

• March 31, 2010 only

Vehicle Class	Personal Use	Business Use
motorcycle	¥2,500	¥1,700
kei two wheel	¥6,300	¥4,500
new kei car	¥13,200	¥8,400
renewal kei car	¥4,400	¥2,800
passenger car	¥6,300 per .5 ton	¥2,800 per .5 ton
truck (commercial vehicle)	¥4,400 for 1 ton, ¥8,800 for 2 tons, ¥13,200 for 2.5 tons, ¥18,900 for 3 tons, ¥6,300 each additional ton,	¥2,800 for 1 ton
bus	¥6,300 per ton	¥2,800 per ton

Road Tax increments

The following is the tax rates for passenger vehicles used for both personal and business use, incremented by 500cc engine displacement

Total Displacement	Personal Use	Business Use
under 1 liter	¥29,500	¥7,500
1 liter - under 1.5 liters	¥34,500	¥8,500
1.5 liters - under 2.0 liters	¥39,500	¥9,500
2.0 liters - under 2.5 liters	¥45,000	¥13,800
2.5 liters - under 3.0 liters	¥51,000	¥15,700
3.0 liters - under 3.5 liters	¥58,000	¥17,900
3.5 liters - under 4.0 liters	¥66,500	¥20,500
4.0 liters - under 4.5 liters	¥76,500	¥23,600
4.5 liters -under 6.0 liters	¥88,000	¥27,200
over 6 liters	¥111,000	¥40,700

The following table is the tax bracket for trucks, or vehicles built with a load carrying section without seats and a single bench seat in the front of the vehicle in an enclosed passenger compartment.

Load capacity	Personal Use	Business Use
under 1 metric ton	¥8,000	¥6,500
1 ton - under 2 tons	¥11,500	¥9,500
2 tons - under 3 tons	¥16,000	¥12,000
3 tons - under 4 tons	¥20,500	¥15,000
4 tons - under 5 tons	¥25,500	¥18,500
5 tons - under 6 tons	¥30,000	¥22,000
6 tons - under 7 tons	¥35,000	¥25,500
7 tons - under 8 tons	¥40,500	¥29,500
over 8 tons	¥40,500 + ¥6,300 for each additional ton	¥29,500 + ¥4,700 for each additional ton

The following table is the tax bracket for buses, or vehicles designed to carry many passengers.

Load capacity	Personal Use	Business Use
30 or less	¥33,000	¥12,000
under 40	¥41,000	¥14,500
under 50	¥49,000	¥17,500
under 60	¥57,000	¥20,000
under 70	¥65,500	¥22,500
under 80	¥74,000	¥25,500
80 and over	¥83,000	¥29,000

Latvia

The vehicle operating tax on cars first registered after January 1, 2005 that have registration certificates with information on total weight, engine volume and engine maximum power, shall be paid by summing up tax rates according to total weight, engine volume and engine maximum power of the car as follows: By total weight (EUR) ≤1500 kg 14,23 1501 kg - 1800 kg 29,88 1801 kg - 2100 kg 51,22 2101 kg - 2600 kg 65,45 2601 kg - 3000 kg 78,26 3001 kg - 3500 kg 91,06 > 3500 kg 102,45

By engine volume (EUR) ≤ 1500 cm3 8,54 1501 cm3- 2000 cm3 21,34 2001 cm3- 2500 cm3 34,15 2501 cm3- 3000 cm3 51,22 3001 cm3- 3500 cm3 85,37 3501 cm3- 4000 cm3 149,40 4001 cm3-5000 cm3 213,43 >5000 cm3 277,46

By engine max. power (EUR) ≤ 55 kW 8,54 56 kW - 92 kW 21,34 93 kW - 129 kW 34,15 130 kW - 166 kW 51,22 167 kW - 203 kW 85,37 204 kW - 240 kW 149,40 241 kW - 300 kW 213,43 > 300 kW 277,46

Luxembourg

An annual tax is applied to your vehicle. In 2013, the annual tax is e.g. EUR 224 for a BMW 330D 2004 model.

Mexico

Till 2011, the federal government charged an annual Vehicle Tax named TENENCIA, depending on the value and other vehicle characteristics. Although the tax was federal, the States where charging the tax. This tax was created in 1961 and in 2006 represented about 1.6% of the total tax income (around 13 billion pesos). In 2012, the Vehicle Tax became a State matter with some States charging the tax, others charging a partial tax (mostly on cars above certain value) and others such as Morelos and Querétaro, charging no tax.

Netherlands

In the Netherlands, a tax is applied to your vehicle based on its weight and fuel type, and the province. Cars producing less than 88 g/km CO2 and classic cars over 40 years old are exempt from road tax.

Norway

In Norway, a registration fee is applied to all new motor vehicles when sold new. The fee is calculated by several variables such as vehicle classification, emissions (CO2 and NOx), vehicle weight and engine power and generally rewards vehicles with smaller engines, low emissions and low weight. This fee can be in the hundreds of thousands Norwegian kroner. In addition, there is an annual road tax applied to motor vehicles, failure of payment will generally lead to license plates being withdrawn. The road tax varies by vehicle classification, as of 2013 for ordinary passenger cars (less than 7 500 kg) it is 2940 Norwegian kroner (with a slightly higher amount, 3425, for diesel cars without DPF - diesel particulate filter).

Spain

In Spain two taxes apply to motor vehicles:

a) The Registration tax (impuesto de matriculacion) applies at purchase time to the purchase price. It is a national tax and the rate varies from 0% to 14.75% depending on C02 emissions. In some cases regions may fix their own rates.

b) The Mechanical vehicle circulation tax (Impuesto sobre Vehículos de Tracción Mecánica or IVTM)is an annual tax. The tax is a municipal tax whose rate varies widely across the country. The tax is calculated according to the Tax horsepower of the vehicle. In Madrid and Barcelona the rates for 2011 ranges from 22 euros for up to 8 HP to 224 euros for vehicles with over 20 HP.

United Kingdom

Main article: Vehicle Excise Duty

In the United Kingdom it is a requirement to pay Vehicle Excise Duty, which is paid to the government for a vehicle licence. Up until October 2014 vehicle licences, in the form of a paper disc, were required to be displayed on vehicles. Since October 2014 licence details are stored centrally on a database. Vehicles that are not used or kept on public roads must be the subject of a Statutory Off Road Notification (SORN) if they are not licensed.

In 1937 the direct relationship that existed between the tax and government expenditure on public roads was cut, the proceeds being treated as general taxation.

In the 2015 budget the government announced that from 2020 the revenue would be ring-fenced for expenditure on the strategic road network.

United States

Each state requires an annual registration fee which varies from state to state.

Additionally, in some states, counties and/or municipalities are allowed to also impose a vehicle tax. For example, in Illinois, certain counties tax vehicles that are registered in unincorporated areas, and a number of municipalities have their own annual vehicle registration fee. In Massachusetts, the excise tax is billed separately from registration fees, by the town or city in which the vehicle is registered, and was set at a fixed rate of 2.5% statewide by a 1980 law called Proposition 2½. Within some states, the fees may vary from county to county, as some counties have surcharges per vehicle. An example of this is Virginia's personal property tax. The state of New York, on the other hand, charges a tax based on the vehicle's weight, rather than on its value, which is charged at the time of registration renewal.

In California and New Hampshire, the registration tax is calculated by the current value of the vehicle. As a result, older and more inexpensive vehicles will have a low registration fee, whereas newer and more expensive vehicles will have fees in the hundreds of dollars.

There is also a Federal Highway Use tax for vehicles with gross weights of 55,000 pounds or more, including trucks, truck tractors and buses. Generally, vans, pickup trucks, panel trucks and the like are not subject to this tax. The tax does not apply to vehicles that are used for 5,000 miles or less (7,500 miles or less for agricultural vehicles) on public highways during a tax period.

See also

• Toll road
• Congestion pricing
• Taxation of private car usage
• Automobile costs
• Vehicle Excise Duty