What is the tax rate for buying a car?
3 Answers
Buying a car involves a tax rate of 10%. The details are as follows: The vehicle purchase tax refers to the tax levied when purchasing a car, and the tax amount is 10% of the car's selling price (excluding tax). The taxpayers of the vehicle purchase tax are units and individuals who acquire taxable vehicles (including purchase, import, self-production, gift, award, or other means of acquisition for personal use), with a tax rate of 10%. In addition to cars, motorcycles, electric vehicles, trailers, and agricultural transport vehicles are also subject to the vehicle purchase tax. Relevant information is introduced as follows: The tax rate for China's automobile consumption tax has been basically formulated, but the reason for not being implemented lies in the choice between two collection schemes—whether to divide it into 5 brackets or 7 brackets. Under the 7-bracket scheme, the lowest tax rate would be only 1%; while under the 5-bracket scheme, the lowest tax rate would be 3%, which is the biggest difference between the two schemes. In the 7-bracket scheme, the classification of displacement is refined, with cars alone being divided into 7 intervals based on 1L, 1.5L, 2.0L, 2.5L, 3.0L, 4.0L, etc. The lowest tax rate could be as low as 1%, while the highest rate remains at 20%. Additionally, the tax rates for other brackets will fluctuate between 3%~25%, while the tax rates for other types of passenger vehicles will range between 1%~9%.
I've bought several cars before, and the tax rate is now basically fixed at around 10%, which is the purchase tax. I remember there was a period in 2009 when cars with engine displacements below 1.6 liters had their tax rate halved to just 5%, but now it's uniformly calculated at 10% regardless of the car model you buy. The 13% value-added tax is usually included in the car price and doesn't need to be calculated separately, so the main tax point is that purchase tax. The calculation formula is very simple: multiply the new car's invoice price by 10%, for example, a 150,000 yuan car would have a tax of 15,000 yuan. When paying the tax, you need to go to the tax bureau or have the 4S dealership handle it for you, so prepare this money in advance to avoid finding out your budget is exceeded at payment time. New energy vehicles like pure electric cars are tax-exempt, which can save a lot, but you need to consider the convenience of charging stations. From personal experience, always clarify the tax rate when choosing a car, as it significantly affects the total expenditure, especially in environments with high loan interest rates where every penny counts—saving a bit on taxes means more money can be used elsewhere.
As an ordinary office worker, I also paid attention to tax rates when I first bought a car. The purchase tax is a standard 10%, meaning an additional 10% of the car's price must be paid as tax. The 13% value-added tax is usually included in the car price, so you only need to focus on the 10% purchase tax. The calculation method is the invoice price multiplied by 10%. For example, a 120,000-yuan car would incur a 12,000-yuan tax. This tax must be paid before license plate registration and cannot be delayed. A reminder: the tax rate is uniform nationwide, but license plate fees and insurance are calculated separately—don’t confuse them. I recommend using a mobile app to calculate the total cost before buying a car, as the tax rate is a major expense that’s easy to overlook. New energy vehicles like electric or plug-in hybrids enjoy tax exemptions, so choosing these options can be more cost-effective in the long run. When financing a car, the tax rate affects the down payment pressure, so controlling your budget is key.
