How Much Purchase Tax Should Be Paid for a 120,000 Yuan Car?

[JulianMarie]

A car priced at 120,000 yuan requires a purchase tax of 10,619 yuan. Below is a detailed analysis: 1. Definition of Vehicle Purchase Tax: Vehicle purchase tax is a tax levied on entities and individuals purchasing specified vehicles within the country, evolving from the vehicle purchase surcharge. 2. Calculation Method of Purchase Tax: The vehicle purchase tax is calculated based on an ad valorem rate. The formula is: Taxable Amount = Taxable Price × Tax Rate. If the consumer buys a domestic private car, the taxable price is the total payment and additional fees paid to the dealer, excluding the value-added tax (VAT) (tax rate of 13%). Since the purchase price on the special invoice for motor vehicle sales includes VAT, the 13% VAT must first be deducted when calculating the vehicle purchase tax. That is, the taxable price for vehicle purchase tax = Invoice Price ÷ 1.13, and then the vehicle purchase tax is calculated at a rate of 10%.

[TessaLynn]

I did quite a bit of research on the purchase tax when buying a car. For a 120,000-yuan car, the purchase tax is basically calculated based on the invoice price excluding VAT, with a tax rate of 10%. The simple formula is to divide the invoice price by 1.13 to remove the VAT, then multiply by 10%. For example, 120,000 divided by 1.13 is approximately 106,194, and multiplying by 10% gives 10,619 yuan, roughly 10,600 yuan. I remember paying around this amount for the purchase tax when I last bought a car in the 120,000-yuan range. Don’t forget that new energy vehicles may be tax-exempt, such as pure electric or plug-in hybrids, which can save you a lot of money. I recommend checking with the salesperson about the specific policies before buying a car. Once the tax is added, the total cost can easily exceed 130,000 yuan, which might go over budget. Also, the tax for imported cars might be different, but for mainstream domestically produced cars, the tax rate is generally the same.

[VanLayla]

The 120,000 yuan car purchase tax sounds like a lot, and I was really shocked when I bought my first car. The calculation is simple: the invoice price usually includes 13% VAT, leaving about 106,000 yuan after deducting it, and then multiplying by the 10% tax rate gives you 10,600 yuan. If you buy an electric vehicle, there's currently a policy for tax exemption, so you can save that amount. My friend chose a new energy vehicle and didn't pay any purchase tax. The tax accounts for 10% of the total price, which is a significant portion, so I recommend preparing more cash and not just looking at the car price before placing an order. Policies may change, so it's best to check official sources or confirm with the dealer.

[DelChase]

Let me explain the vehicle purchase tax calculation simply: For a car with a sticker price of 120,000 yuan, after deducting 13% VAT, the base amount is about 106,000 yuan. The 10% tax on this comes to 10,600 yuan. This tax is mandatory; without paying it, you can't get license plates. From my experience, new energy vehicles like electric cars are usually exempt, but traditional fuel vehicles aren't. Always factor in this extra cost when budgeting to avoid financial strain.