How to pay tax on a car?
As the number of cars continues to increase, the issue of car taxes and fees has also become the focus of attention of the majority of car owners and prospective car owners. Whether you are buying a new car or trading in a second-hand car, taxes and fees are inevitable. This article will introduce you to the types of car-related taxes and fees, calculation methods and payment procedures in detail to help you better understand the relevant knowledge of car taxes and fees.
1. Types of automobile taxes and fees

The taxes and fees involved in automobiles mainly include purchase tax, vehicle and vessel tax, value-added tax, consumption tax, etc. The following are specific categories:
| Types of taxes and fees | Applicable objects | Calculation method |
|---|---|---|
| purchase tax | new car purchase | 10% of the vehicle invoice price (new energy vehicles are exempted) |
| Vehicle and vessel tax | all vehicles | Levy is tiered according to displacement (e.g. 1.0L-1.6L: 300-540 yuan/year) |
| value added tax | new car sales | 13% of vehicle invoice price |
| consumption tax | Imported cars or large-displacement cars | Levy based on displacement (e.g. 3.0L-4.0L: 25%) |
2. Calculation and payment of car purchase tax
Purchase tax is a tax that must be paid when purchasing a new car. The calculation formula is:Purchase tax = vehicle invoice price ÷ 1.13 × 10%. It should be noted that the invoice price includes VAT, so the VAT part needs to be deducted before the purchase tax is calculated.
The purchase tax payment process is as follows:
1. After purchasing a car, bring the car purchase invoice, vehicle certificate, ID card and other materials to the local tax bureau or vehicle management office.
2. Fill out the "Vehicle Purchase Tax Return Form".
3. Staff review the materials and calculate the tax amount.
4. Get the tax payment certificate after paying the tax.
3. How to pay vehicle and vessel tax
Vehicle and vessel tax is a tax that needs to be paid every year, and is usually paid together with compulsory traffic insurance. The following are vehicle and vessel tax standards corresponding to common displacements:
| Displacement range (L) | Annual tax amount (yuan) |
|---|---|
| 1.0 and below | 60-360 |
| 1.0-1.6 | 300-540 |
| 1.6-2.0 | 360-660 |
| 2.0-2.5 | 660-1200 |
| 2.5-3.0 | 1200-2400 |
| 3.0-4.0 | 2400-3600 |
| 4.0 or above | 3600-5400 |
4. Preferential tax policies for new energy vehicles
In order to encourage the development of new energy vehicles, the state has introduced a series of preferential tax policies:
1.Purchase tax exemption: From 2023 to 2025, the purchase of new energy vehicles will be exempt from vehicle purchase tax.
2.Vehicle and vessel tax exemption: Pure electric vehicles and plug-in hybrid vehicles are exempt from vehicle and vessel tax.
3.Subsidy policy: Some cities also have local subsidies for new energy vehicles.
5. Taxes and fees on second-hand car transactions
Second-hand car transactions mainly involve value-added tax and transfer fees:
| Types of taxes and fees | Collection standards |
|---|---|
| value added tax | Personal transactions are exempt; car dealers are charged 0.5% |
| Transfer fee | It varies from place to place, usually 200-800 yuan |
6. Summary
Car taxes and fees are an important expense in the process of buying and using a car. Understanding relevant policies and calculation methods can help you plan your car purchase budget reasonably. It is recommended to consult the local tax department or 4S store to obtain the latest tax policy information before purchasing a car. At the same time, with the popularity of new energy vehicles, you can enjoy more tax benefits by choosing new energy vehicles, which is also a good choice to save money.
I hope this article can help you better understand the relevant knowledge of car taxes and fees. If you have any other questions, please leave a message for consultation.
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