Car tax in Singapore is not one single charge. The amount paid for a vehicle is built from import taxes, registration charges, ownership taxes, emissions adjustments and the Certificate of Entitlement.
This matters when you are buying another car, comparing Singapore car exporters, or searching sell your car Singapore to understand what your present vehicle may be worth. Some charges are paid only once. Others continue for as long as the car remains registered. A few can also affect the amount recovered when the vehicle is sold, deregistered or exported.
The guide below explains the main 2027 charges in plain language and shows how they connect to resale and export value.
2027 note: The figures in this article reflect measures announced for 2027. Check the latest LTA, NEA and Singapore Customs guidance before completing a purchase, sale, deregistration or export.
Vehicle Taxes in Singapore at a Glance
| Charge | When it applies | Main basis |
|---|---|---|
| Excise duty | At import | 20% of customs value |
| GST | At import | 9% of customs value plus duty |
| ARF | At registration | Progressive percentage of OMV |
| VES | At registration | Emissions rebate or surcharge |
| Road tax | During ownership | Engine capacity, motor power or vehicle type |
| Fuel duty or EV AFC | During use | Fuel consumed or flat EV component |
| Imported used-car surcharge | At registration | Fixed S$10,000 |
The S$350 Registration Fee and the COE premium also contribute to the upfront cost. The Registration Fee is administrative, while COE is a quota premium rather than a tax.
1. Open Market Value (OMV)
OMV is not a tax. It is the value assessed by Singapore Customs from the vehicle's purchase price, freight, insurance and other costs involved in bringing it into the country.
It matters because excise duty and ARF are calculated from OMV. A higher OMV therefore increases several parts of the registration cost, not only the vehicle's base price. The original OMV and net ARF also remain relevant when future rebates are calculated.
2. Excise Duty
Imported cars are subject to excise duty at 20% of customs value. A vehicle with a customs value of S$50,000 would therefore attract S$10,000 in excise duty.
This is an import-stage charge. It is normally already reflected in the price of a locally registered car and is not charged again when the vehicle is later sold to another Singapore owner.
3. Goods and Services Tax (GST)
Imported vehicles are also subject to the prevailing 9% GST. For a dutiable car, GST is calculated on the customs value plus excise duty.
- Customs value: S$50,000
- Excise duty: S$10,000
- Amount subject to GST: S$60,000
- GST at 9%: S$5,400
In this example, import-stage taxes total S$15,400 before ARF, COE and other registration charges are added.
4. Registration Fee and Additional Registration Fee
The Registration Fee is S$350. ARF, by contrast, is a major value-based tax paid when the car is first registered. It rises through progressive OMV bands:
- 100% on the first S$20,000 of OMV
- 140% on the next S$20,000
- 190% on the next S$20,000
- 250% on the next S$20,000
- 320% on any OMV above S$80,000
A car with an OMV of S$50,000 would have an ARF of S$67,000 before an emissions rebate: S$20,000 on the first band, S$28,000 on the second and S$19,000 on the remaining S$10,000.
ARF still matters at the end of ownership because an eligible car may receive a PARF rebate when it is deregistered. That rebate is based on the car's age and the net ARF actually paid.
5. Vehicular Emissions Scheme in 2027
VES changes the registration cost according to a vehicle's emissions performance. For cars registered from 1 January to 31 December 2027, the announced amounts are:
- Band A: S$20,000 rebate
- Band B: No rebate or surcharge
- Band C1: S$15,000 surcharge
- Band C2: S$30,000 surcharge
- Band C3: S$45,000 surcharge
The worst-performing measured pollutant determines the vehicle's band. Only the cleanest Band A vehicles receive a rebate under the revised framework.
The Electric Vehicle Early Adoption Incentive ends on 1 January 2027. However, the S$0 minimum ARF floor for fully electric cars remains until 31 December 2027, allowing the VES rebate to reduce an eligible EV's ARF to zero.
A VES rebate also reduces the net ARF used for a future PARF calculation. A VES surcharge, however, is not added to the ARF amount used to calculate PARF.
6. COE: Important, but Not a Tax
COE gives the owner the right to own and use a vehicle in Singapore, generally for 10 years. The Quota Premium is set through the bidding system.
Although COE can represent a large part of the purchase price, it is a quota premium rather than a tax. Buyers still pay close attention to the remaining COE period. When a car is deregistered early, the owner may qualify for a pro-rated rebate for the unused portion.
7. Road Tax and the EV Additional Flat Component
Every registered car must have valid road tax. Petrol-car road tax is mainly based on engine capacity, while electric-car road tax uses the motor's maximum power rating and includes an Additional Flat Component.
Under the current structure, the EV Additional Flat Component is S$350 every six months, or S$700 a year.
Road-tax surcharge for older cars
- More than 10 years: 10%
- More than 11 years: 20%
- More than 12 years: 30%
- More than 13 years: 40%
- More than 14 years: 50%
When a car is sold, paid road tax stays with the vehicle. When it is deregistered, the unused portion is refunded to the last registered owner.
8. Fuel Duty and Imported Used-Car Surcharge
Petrol and diesel drivers pay fuel duty indirectly whenever they refuel. Electric cars do not use taxable fuel, which is why the EV Additional Flat Component acts as an ongoing vehicle-use contribution.
A used car imported for registration in Singapore is also subject to a fixed S$10,000 surcharge. It must meet LTA's registration requirements, including the general rule that it cannot be more than three years old when the application is submitted. This surcharge does not apply simply because an existing Singapore-registered car changes owners.
What Happens to the Taxes When You Sell Your Car?
The original excise duty, GST and ARF are not charged again when a locally registered car is transferred to another owner. Its selling price instead reflects the vehicle's present market position.
Before you sell your car in Singapore, check:
- Remaining COE and any estimated COE rebate
- PARF eligibility and estimated rebate
- Road-tax expiry date
- Outstanding finance
- Mileage, service history and repair needs
- Local resale, export and parts-recovery value
Not every tax paid at the beginning of ownership can be recovered. PARF and COE rebates may return part of the remaining paper value, but the amount depends on the car's age, deregistration timing and earlier emissions incentives.
How Vehicle Taxes Affect Car Export
A car that is deregistered and exported may qualify for PARF and COE rebates, depending on its age, registration history and unused COE period. The vehicle must also be disposed of correctly, and the required export and disposal records must be submitted.
Goods exported from Singapore are not charged GST or duty, but the shipment must still be declared and supported by the correct Customs permits. This does not create a refund of every tax paid when the vehicle was first registered.
Singapore car exporters may consider the following when valuing a vehicle:
- Net PARF and COE rebate value
- Vehicle age and registration date
- Engine, gearbox and overall condition
- Overseas demand for the model or its parts
- Shipping, handling, permit and documentation costs
A model with weak local demand may still perform well in an overseas market. Another car may be worth more as a local resale. The useful comparison is the final net amount, not simply the first headline quotation.
Frequently Asked Questions
Is COE a vehicle tax?
No. COE is a quota premium for the right to own and use a vehicle. It is separate from ARF, GST, excise duty and road tax.
Do I receive my ARF back when I sell the car?
Not through an ordinary ownership transfer. An eligible vehicle may receive a PARF rebate when it is deregistered, based on its age and the net ARF originally paid.
Are electric cars tax-free in 2027?
No. EVs still require COE and may incur road tax and the Additional Flat Component. Eligible Band A cars can receive a S$20,000 VES rebate in 2027, but the separate Early Adoption Incentive ends on 1 January 2027.
Are exported cars charged GST or duty?
Goods exported from Singapore are not charged GST or duty. The export must still be declared and supported by the required permits and disposal records.
Why do buyers quote different values?
A local dealer may focus on roadworthiness, remaining COE and retail demand. An exporter may place more weight on overseas demand, reusable parts, shipping costs and available rebates. Compare final offers after all deductions.
Understand the Numbers Before You Sell
Vehicle taxes affect the cost of buying a car, the cost of keeping it and the value that remains when it is sold or deregistered.
Before approaching a local buyer or Singapore car exporters, separate the car's market value from possible PARF, COE and road-tax refunds. Also confirm whether the buyer is valuing the complete vehicle, its export potential, reusable components or recyclable materials.
Everise Auto can assess used and end-of-life vehicles for local sale, complete export, parts recovery or scrapping. Share the make, model, registration year, mileage, COE expiry date and present condition to receive an assessment based on the car's actual position in 2027.
