What is the Purchase Tax for a 1.4L Displacement Car?
3 Answers
1.4L displacement car purchase tax payable = taxable price * 10%. Here is more information about the taxable price: Introduction: The purchase tax is a tax levied by tax authorities on the acquisition of specified properties and assets within the scope of the purchase tax system, such as the vehicle purchase tax. The vehicle purchase tax is a tax imposed on entities and individuals purchasing specified vehicles within China, evolving from the vehicle purchase surcharge. Implementation: Starting from January 1, 2018, the purchase tax rate for consumers buying passenger vehicles with a displacement of 1.6 liters or below has been restored to 10%. Prior to this, the purchase tax rate was 7.5%.
I've been driving for over a decade. I remember when I bought my first 1.4L displacement car, the purchase tax was about 10% of the car price. But back then, there were discounts for small-displacement vehicles, cutting the tax by more than half. For example, for a car priced at 120,000 yuan, the pre-tax price was around 106,000 yuan, and the tax was just over 10,000 yuan. However, policies keep changing. After 2023, I heard the discounts were canceled, and most places now charge the full 10%. Don't just listen to salespeople when buying a car—check the latest policies on the tax bureau's official website. Money-saving tip: Wait for promotional seasons or tax-free events, like with new energy vehicles that are completely tax-exempt. Choosing a 1.4L not only saves on tax but also on fuel costs, making it light and practical to drive. Calculate the total cost including insurance and miscellaneous fees—don't be fooled by surprise prices. My advice is to compare several options before buying. Taxes are fixed expenses, so every penny saved counts.
As someone who often helps friends with car purchase planning, the purchase tax accounts for a significant portion of the budget. For a 1.4L displacement vehicle, the tax rate is generally 10%, calculated by multiplying the car's invoice price (after deducting VAT) by 0.1. For example, a car priced at 130,000 yuan has a tax-exclusive price of about 115,000 yuan, resulting in a tax of approximately 11,500 yuan. Money-saving tip: Pay attention to government energy-saving subsidies, as small-displacement vehicles may enjoy tax reductions, such as last year's tax rate dropping to 5% or lower. I recommend choosing a 1.4L car for those with tight budgets, as the total cost is lower and insurance may also be cheaper. Taxes must be paid in cash and cannot be financed, so set aside extra funds to avoid cash flow issues. Overall car purchase costs should consider fuel and maintenance expenses, with 1.4L vehicles having lower long-term costs. Always check current regulations and don’t rely on outdated information. When buying a new car, don’t overlook the significant expense of taxes.
