
Vehicle and Vessel Tax divides the vehicle displacement into 7 brackets for taxation, which include: 1.0L and below, above 1.0L to 1.6L (including 1.6L), above 1.6L to 2.0L (including 2.0L), above 2.0L to 2.5L (including 2.5L), above 2.5L to 3.0L (including 3.0L), above 3.0L to 4.0L (including 4.0L), and above 4.0L. Here are the specific details about Vehicle and Vessel Tax: 1. Definition: Vehicle and Vessel Tax refers to a tax that the owners or managers of vehicles and vessels within the territory of the People's Republic of China are required to pay according to the Vehicle and Vessel Tax Law of the People's Republic of China. 2. Reduction and Exemption Standards: For energy-saving vehicles, the Vehicle and Vessel Tax is halved; for new energy vehicles and vessels, the Vehicle and Vessel Tax is exempted.

The vehicle and vessel tax is indeed closely tied to engine displacement. I did some research when buying my own car. Simply put, the larger the engine, the higher the tax. For example, small-displacement cars below 1.6L pay around 300 to 540 yuan annually, which is perfectly adequate for regular family use. If you opt for a car above 2.0L, the tax increases significantly—for instance, 2.5L models pay 660 to 1,200 yuan, while 3.0L models start at 1,200 yuan, which can almost equal a month's fuel cost. Actually, standards vary by province; I pay slightly less in Guangdong than my friend in Beijing. So before buying a car, it's best to check local policies—don't just focus on the car price, as these fixed annual expenses can add up.

After so many years in car sales, the question I get asked most often is how vehicle and vessel tax is calculated. Simply put, it's divided into seven tiers based on engine displacement: Cars under 1.0L have the lowest tax rate at 60-360 yuan per year; For family cars, the 1.0-1.6L range is most cost-effective at 300-540 yuan; Above 1.6L the tax jumps noticeably - 2.0L vehicles pay 360-660 yuan. The most extreme case is luxury cars over 4.0L, capped at 5,400 yuan annually. My advice? Buy right at the displacement threshold - choosing a 1.6L instead of 1.8L could save you 200 yuan every year. Nowadays, new energy vehicles are exempt from this tax - I just switched to an EV last month, and the annual tax savings alone cover half a year's charging costs.

As an environmental volunteer, I find the displacement-based vehicle and vessel tax policy particularly reasonable. Engine displacement is directly linked to carbon emissions, so higher taxes on large-displacement vehicles contribute to environmental protection. For example, cars with engines above 3.0 liters pay 2,400-3,600 yuan in annual taxes, which could cover three months of car-sharing rentals. Nowadays, small-displacement turbocharged technology is quite mature - a 1.5T engine delivers comparable power to older 2.0L models while paying only half the tax. Plug-in hybrids are also tax-exempt - my neighbor just bought a BYD that's powerful and tax-free. I recommend everyone check environmental labels when car shopping - it saves money and helps protect our blue skies.

Last time I helped my dad with the vehicle and vessel tax, I realized there's a lot to learn. The displacement brackets are very detailed: for example, 2.0 to 2.5 liters is one bracket with an annual tax of 660-1200 yuan; 2.5 to 3.0 liters requires 1200-2400 yuan. The key is that each province has different implementation standards—a 2.0-liter car in Jiangsu might cost 500 yuan, while the same displacement in Zhejiang could be 600 yuan. It's best to check the latest standards on the provincial tax bureau's official website, as some cities also offer energy-saving and emission reduction subsidies. Remember to bring your vehicle license when paying, and handling it together with compulsory traffic insurance is the most convenient. You can now pay via mobile, but for the first time, it's recommended to go to the vehicle management office—the staff will teach you how to save money.


