How is the vehicle use tax calculated?
3 Answers
Purchase tax = vehicle purchase price / (1 + 17%) × purchase tax rate (10%). The preferential policy for vehicle purchase tax has been adjusted, now following the new 7.5% preferential scheme.
Last year, I bought a family car and only then realized that the vehicle usage tax is mainly the vehicle and vessel tax, calculated annually based on the engine displacement brackets. For example, cars with an engine displacement below 1.0L have the lowest tax rate, ranging from about 60 to 360 yuan per year; mid-range cars like my 1.5L vehicle fall into the 1.0 to 1.6L bracket, paying around 360 to 540 yuan annually; larger SUVs or luxury cars with displacements above 2.0L can face taxes exceeding 1,000 yuan. Tax rates vary significantly across different provinces and cities, with major cities like Beijing and Shanghai generally costing 100 to 200 yuan more, while smaller towns are relatively cheaper. The vehicle and vessel tax isn’t paid separately—it’s usually bundled with compulsory traffic insurance and paid to the insurance company, which collects it on behalf of the government. To save money, I recommend choosing a small-displacement car or a new energy vehicle, which is exempt from this tax and is also eco-friendly. Regularly check and pay the tax to avoid late fees. Calculating it clearly ensures a worry-free driving experience.
As a car owner, the key to calculating vehicle usage tax lies in the engine displacement tiers for the vehicle and vessel tax. For displacements between 1.0 to 1.6 liters, the annual tax typically ranges from 300 to 500 yuan—my 1.2L car pays 420 yuan. Higher displacements like 2.5L can incur taxes exceeding 1,000 yuan. Rates vary by region, with first-tier cities generally 10% higher. Remember, the new vehicle purchase tax is a one-time fee at purchase, calculated as 10% of the car's price, but this is separate from usage tax. The vehicle and vessel tax is paid annually, together with compulsory traffic insurance. Check your local transport bureau's official rate table to budget accordingly. Don't overlook details—the displacement is specified in the invoice's certification.
