What is the purchase tax for a 1.4L displacement car?
4 Answers
1.4L displacement car purchase tax payable amount = taxable price * 10%. Here is more information about the taxable price: 1. 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 vehicle purchase tax. Vehicle purchase tax is a tax levied on units and individuals who purchase specified vehicles within China, which evolved from the vehicle purchase surcharge. 2. Starting from January 1, 2018, the purchase tax rate for consumers buying passenger vehicles with 1.6L or below displacement has been restored to 10%. Before this, the purchase tax rate was 7.5%.
Last year I bought a car with a 1.4L engine displacement. The vehicle purchase tax isn't calculated directly based on displacement - the tax rate is uniformly 10%. The specific tax amount depends on the ex-factory price of your car. For example, my car cost about 120,000 yuan before taxes. After deducting the 13% VAT, the taxable portion was approximately 106,200 yuan, so I paid 10,620 yuan in tax. Policy-wise, there used to be preferential policies for small-displacement vehicles before 2023, but they're basically gone now. I recommend consulting with sales to calculate the tax before purchasing and budgeting accordingly - don't just focus on engine displacement. Since vehicle prices vary significantly, tax differences of several thousand yuan for the same displacement are normal.
In my work, I often deal with car purchase matters. The purchase tax is uniformly 10%, with no special treatment for 1.4L engine displacement. To calculate the tax amount, divide the invoice price by 1.13 and then multiply by 10%. For a base car price ranging from 80,000 to 150,000 yuan, the tax would be approximately 6,000 to 13,000 yuan. It's essential to calculate this in advance when budgeting; otherwise, you might find yourself short on funds after buying the car. I've even seen cases where people mistakenly believed that a smaller engine displacement meant lower taxes, leading to insufficient budgets and the need to borrow money. I recommend that new car owners set aside the tax amount before considering other expenses.
The 10% purchase tax is a fixed policy and is not significantly related to the 1.4L engine displacement. The tax base is the vehicle's invoice price minus the VAT portion. A smaller displacement may only mean the car is cheaper, resulting in slightly less tax. Historically, there were preferential policies for displacements below 1.6L, but now it's standardized. This tax is used to support transportation infrastructure. For a 1.4L car priced at 100,000 yuan, the tax would be approximately 8,000 yuan. It's advisable to check the latest policies frequently as they may change.
