Car tax explained
Why cars cost so much in Singapore
A new car here costs a median of 5.7 times what it is actually worth on import — meaning 82% of what you pay is tax and COE, not car. Across the 268 models LTA listed in August 2026 the multiple runs from 4.3× to 12.5×.
The cheapest cars are taxed hardest
This is the part most people have backwards. COE is a flat cost — it does not care whether you are buying a hatchback or a limousine — so it lands far heavier, proportionally, on a cheap car. A $13,457 car and a $81,280 one pay a similar COE, and the multiple tells the story:
Where the money actually goes
Take the BYD M6 7-SEATER(ER), a car sitting almost exactly on the median multiple. Its import value is $28,737, and this is what turns that into $164,060:
| Open Market Value — what the car is worth | $28,737 |
|---|---|
| GST & excise duty | $8,851 |
| Additional Registration Fee | $32,232 |
| VES rebate | −$22,500 |
| EV Early Adoption Incentive | −$7,500 |
| Registration fee | $350 |
| COE | $123,890 |
| Cost to put on the road | $164,060 |
That is 5.7× the car's import value — and it still excludes whatever the dealer adds on top, insurance and road tax.
Every levy, in plain English
- Open Market Value
- What the car is actually worth on import, as assessed by Singapore Customs — the purchase price plus freight, insurance and handling, before any local tax. Every tax below is calculated from this number, so it is the closest thing to the car's "real" price.
- GST & excise duty
- Excise duty is charged as a percentage of the Open Market Value, and GST is then charged on the total. Both are unavoidable and scale directly with how expensive the car was to import.
- Additional Registration Fee
- The main registration tax, and usually the largest single tax on a car here. It is tiered: higher bands of Open Market Value are taxed at steeply higher rates, so an expensive car pays disproportionately more.
- VES rebate / surcharge
- The Vehicular Emissions Scheme adjustment. A negative figure is a rebate for a clean car; a positive figure is a surcharge for a dirty one. Electric cars generally receive the maximum rebate.
- EV Early Adoption Incentive
- A rebate off the Additional Registration Fee for electric cars, shown as a negative figure. Petrol and hybrid cars receive nothing here.
- Registration fee
- A flat administrative fee to register the vehicle. The same for every car.
- COE premium
- The Certificate of Entitlement — the right to own the car for ten years, won at auction. This is set by bidding, not by the car, so it moves every fortnight and is the single most volatile number here. The figure shown is from the month's first bidding exercise.
Taxed hardest
Cheap cars, where a flat COE dominates.
- Suzuki Jimny 1.5 Glx At $13,457 → $167,909 12.5×
- Suzuki Swift 1.2 Glx Cvt $12,856 → $153,912 12.0×
- MAZDA3 4DR 1.5 At M-Hybrid Classic I4RC $15,418 → $172,435 11.2×
- Suzuki Jimny 5 Door Glx 4AT $17,985 → $188,249 10.5×
- MAZDA3 4DR 1.5 At M-HEV Executive I4RC $16,199 → $169,127 10.4×
- Volkswagen T-Cross Style 1.0 $16,916 → $175,892 10.4×
Taxed lightest
Expensive cars, where COE is a smaller share.
- BMW i5 eDrive40 ALED MSPT $81,280 → $346,670 4.3×
- BMW i5 eDrive40 ALED $79,049 → $337,279 4.3×
- Mercedes-Benz GLC 400 AMG LN Sport $78,571 → $335,459 4.3×
- Zeekr 009 AWD (6-SEATER) $85,214 → $365,384 4.3×
- BMW iX3 50 xDrive PGR I.GLOW MSPTPRO ALED $74,808 → $321,129 4.3×
- Porsche Cayenne (X1) $95,818 → $412,208 4.3×
Compare specific models field by field · Are EVs cheaper than petrol here? · What each EV costs to charge
Source: LTA Car Cost Update, August 2026, covering 268 models. COE is set by fortnightly bidding, so every total here moves with it. These are figures per model, not weighted by how many of each were sold — LTA publishes which models were registered, not how many. Not affiliated with or endorsed by LTA.
