Is the Purchase Tax Halved for 1.4T Vehicles?

[DeNicole]

1.4t purchase tax is halved. The following is an introduction to the requirements for the purchase tax halving and the calculation method of the purchase tax: Requirements for purchase tax halving: All models with a displacement equal to or less than 1.6 meet the policy benefits of halving the purchase tax. Purchase tax calculation method: The vehicle purchase tax is calculated based on the ad valorem rate method to determine the taxable amount. The calculation formula is: Taxable amount = Taxable price × Tax rate. If the consumer buys a domestic private car, the taxable price is the total price and additional fees paid to the dealer, excluding the value-added tax (VAT rate of 13%).

[SamanthaLynn]

As a regular car owner who frequently changes vehicles, I remember there was indeed a policy of halving the purchase tax for engines of 1.6 liters and below, including 1.4T turbocharged cars. This was to encourage energy conservation and environmental protection, reducing the tax from 10% to 5% when buying a car, which could save thousands of yuan. However, I heard the policy changed last year, and this benefit might no longer be available. Nowadays, new energy vehicles are more favored, with the purchase tax directly exempted. I recommend checking the tax official website or asking the 4S store before buying a car, as they know the latest market conditions. Don't miscalculate yourself—the purchase tax is calculated at 10% of the invoice price, and missing out on the policy could mean a big loss. Additionally, look for subsidy promotions when buying a car; some brands offer free maintenance, which is also convenient and cost-saving. It's best not to wait for the promotional season—complete the paperwork early to ensure everything goes smoothly.

[VanJourney]

I can share some money-saving tips. The halved purchase tax was previously common for engines under 1.6 liters, and the 1.4T you mentioned is usually included, with the tax rate dropping from 10% to 5%, saving you a decent amount. However, policies are unstable—last year when I bought a car, I missed out. Now subsidies have shifted to electric vehicles, with pure EVs exempt from purchase tax, making them even more cost-effective. I recommend checking the national tax app or official account first, as they update quickly. To calculate the tax, multiply the invoice price by the tax rate, and make sure to get a formal invoice. Combine this with other discounts, such as used car trade-in subsidies or financial interest subsidies, to significantly reduce the total cost. Before buying, compare models thoroughly, avoid impulse purchases, and look out for promotional seasons like 618 or Double 11 for extra discounts. Don’t forget to schedule your license plate registration in advance to save time.

[FaithLynn]

Regarding the purchase tax, policies have undergone frequent changes. In the past, vehicles with engines below 1.6 liters enjoyed a half-price discount, including 1.4T engines, reducing the tax rate to 5%. However, according to the latest announcement, this policy may be suspended or canceled, with priority given to new energy vehicles. It is advisable to consult the local tax bureau or website before purchasing. The base tax rate is 10%, calculated based on the vehicle's invoice price. Act early to verify and avoid unnecessary expenses.