COE, ARF Registration Fee and Car Road Tax in Singapore 2026
Owning a car in Singapore is not a purchase — it is a tax event. The Certificate of Entitlement alone can cost S$90,000 to S$110,000 in 2026, more than the car itself. The Additional Registration Fee adds 100% to 220% on top of the Open Market Value. And annual road tax ranges from S$700 for a small car to S$5,000+ for a large-engine luxury vehicle. These three “taxes” make Singapore the most expensive place in the world to own a car — and every buyer needs to calculate the full cost before stepping into a showroom. Our three calculators handle the COE bidding system, the ARF sliding scale, and annual road tax for both petrol and electric vehicles using LTA-compliant formulas.
Understanding the COE Bidding System in Singapore 2026 — How the Certificate of Entitlement Works, LTA Category A vs Category B vs Category E and Why Prices Fluctuate Between S$80,000 and S$115,000
The Certificate of Entitlement is a licence that grants you the right to register and own a vehicle in Singapore for 10 years. Without a COE, you cannot put a car on the road — regardless of how much you paid for the vehicle itself. COEs are released by the Land Transport Authority (LTA) in limited quantities through open bidding exercises held twice a month (first and third Monday).
The COE categories are: Category A — cars with engine capacity up to 1,600cc and power output up to 97kW (130bhp). Category B — cars with engine capacity above 1,600cc or power output above 97kW. Category C — goods vehicles and buses. Category D — motorcycles. Category E — open category (any vehicle type). In 2026, Cat A COE premiums have been fluctuating between S$85,000 and S$105,000, while Cat B ranges from S$95,000 to S$115,000. Cat E (open) typically tracks Cat B or slightly above.
The bidding process works as follows: bidders submit their maximum bid price through an approved motor dealer or directly via the LTA one-motoring portal. At the close of the bidding exercise, the lowest successful bid that fills the quota becomes the Quota Premium — and all successful bidders pay this price, regardless of their individual bid amount. If you bid S$110,000 and the quota premium settles at S$95,000, you pay S$95,000. If you bid S$90,000 and the quota premium settles at S$95,000, your bid is unsuccessful.
The COE Bidding Price Estimator takes the vehicle category, your maximum budget, and the latest bidding results. It shows: recent quota premiums for all categories, the price trend over the past 6 to 12 months, a forecast range based on historical patterns and quota supply, and whether your budget is likely to secure a COE in the next bidding exercise.
Why COE Prices Are So High in 2026 — Supply Constraints and the 10-Year Replacement Cycle
COE supply is determined by the number of vehicles being deregistered (scrapped or exported) plus a small growth allowance set by the government. In 2026, the COE quota remains tight because the 2016 cohort (when COE prices were lower and more cars were registered) is not yet due for deregistration. The government has set a 0% vehicle growth rate for most categories, meaning the only new COEs come from deregistrations. Until a large wave of 10-year-old vehicles reaches expiry (expected around 2027-2028), COE supply remains constrained and prices stay elevated.
Understanding the Additional Registration Fee (ARF) in Singapore 2026 — How LTA Calculates the Sliding Scale Tax of 100% to 220% Based on the Open Market Value of Your Vehicle
The Additional Registration Fee is a one-time tax payable when you first register a vehicle in Singapore. It is calculated as a percentage of the vehicle Open Market Value (OMV) — which is the price of the vehicle at the point of import, as determined by Singapore Customs, before any local taxes, COE, or dealer markup.
The ARF sliding scale for 2026 is progressive (similar to income tax brackets): on the first S$20,000 of OMV — ARF is 100%. On the next S$30,000 (OMV S$20,001 to S$50,000) — ARF is 140%. On the OMV above S$50,000 — ARF is 220%. This progressive structure means luxury vehicles with high OMVs pay dramatically more in ARF than mass-market cars.
For example: a Toyota Corolla with an OMV of S$22,000 pays ARF of S$20,000 (100% on first S$20K) + S$2,800 (140% on the remaining S$2K) = S$22,800. A BMW 3 Series with an OMV of S$55,000 pays S$20,000 + S$42,000 + S$11,000 = S$73,000. A Mercedes S-Class with an OMV of S$100,000 pays S$20,000 + S$42,000 + S$110,000 = S$172,000. The ARF alone for the Mercedes is more than most countries charge for the entire car.
The ARF Calculator takes the vehicle OMV and computes: the ARF at each bracket, the total ARF payable, the PARF rebate value (Preferential Additional Registration Fee — the amount refundable if you deregister the vehicle before 10 years), and the total registration cost breakdown (ARF + Registration Fee + Excise Duty + COE).
The PARF Rebate — Getting Some ARF Back When You Scrap Early
If you deregister (scrap or export) your vehicle before it turns 10 years old, you receive a PARF rebate — a partial refund of the ARF. The rebate is: 75% of ARF if deregistered within 5 years, 70% within 6 years, 65% within 7 years, 60% within 8 years, 55% within 9 years, and 50% at 10 years. After 10 years, the PARF rebate drops to zero. This rebate is a major consideration for car buyers deciding whether to renew their COE at the 10-year mark or deregister. The PARF Rebate Calculator models the exact refund at any deregistration age.
Understanding Car Road Tax in Singapore 2026 — How LTA Calculates Annual Road Tax Based on Engine Capacity (cc) for Petrol Cars and Power Rating (kW) for Electric Vehicles
Road tax is an annual tax payable to LTA for the right to use your vehicle on Singapore roads. The amount depends on the vehicle type (petrol/diesel, hybrid, or fully electric) and its engine capacity (in cubic centimetres, cc) or power output (in kilowatts, kW for EVs).
For petrol and diesel cars, road tax is calculated using a progressive cc-based formula: the first 600cc at S$0.782 per cc per 6 months, 601-1,000cc at S$0.782 per cc, 1,001-1,600cc at S$0.782 per cc, 1,601-3,000cc at higher rates scaling up, and above 3,000cc at the highest rate. The exact formula is complex with multiple tiers, but as a rough guide: a 1,600cc car pays approximately S$742/year, a 2,000cc car pays approximately S$1,206/year, and a 3,000cc car pays approximately S$2,862/year. The road tax is payable every 6 months or 12 months.
For electric vehicles (EVs), road tax is calculated using a kW-based formula since EVs have no engine displacement. The rate uses a power-to-cc equivalence formula set by LTA, then applies the standard road tax table. In 2026, the government offers a 20% road tax rebate for electric cars (extended from the original EV early adoption incentive period), making EV road tax cheaper than an equivalent-powered petrol car. A Tesla Model 3 (211kW) pays approximately S$1,100-S$1,300/year after the rebate, compared to approximately S$1,500-S$1,800 for a similarly powered petrol car.
The Car Road Tax Calculator takes engine capacity (cc) for petrol/diesel or power rating (kW) for EVs. It computes: annual road tax, 6-monthly road tax, the applicable surcharge for older vehicles (10+ years), and a comparison between petrol and EV road tax for vehicles of similar power. The EV Road Tax Calculator uses the LTA kW-to-cc equivalence formula specifically for battery electric and plug-in hybrid vehicles.
How These 3 LTA Vehicle Tax Calculators Work — COE Bidding Analysis, ARF Sliding Scale Computation and Road Tax Formula for Singapore 2026
The COE Price Estimator takes the vehicle category (A/B/C/D/E) and displays: the latest quota premium results, 12-month historical trend, average premium over the past 3/6/12 months, and a directional forecast based on quota supply and deregistration patterns.
The ARF Calculator takes the vehicle OMV and applies the progressive sliding scale: 100% on first S$20K, 140% on S$20K-S$50K, 220% above S$50K. It outputs: bracket-by-bracket ARF breakdown, total ARF, PARF rebate schedule at each deregistration year, and the total upfront cost (ARF + COE + registration fee + excise duty).
The Road Tax Calculator takes engine capacity (cc) or power rating (kW for EVs) and vehicle age. It computes: annual road tax using the LTA formula, 6-monthly instalment, 10-year surcharge (if applicable), EV rebate (if applicable), and a 10-year road tax projection showing the total road tax bill over the vehicle lifespan.
3 Real Singapore Vehicle Tax Examples — Toyota Corolla Total Cost, BMW 3 Series ARF Breakdown and Tesla Model 3 EV Road Tax Comparison
Example 1: Toyota Corolla Cross Hybrid 1.8L — Total Registration Cost in 2026
A new Toyota Corolla Cross Hybrid with 1,798cc engine, OMV S$24,000. Category A COE premium: S$95,000.
A “humble” Toyota Corolla costs S$170,620 in Singapore — of which S$125,620 (74%) is taxes and fees. The car itself is worth only S$24,000 at OMV. The ARF (S$25,600) and COE (S$95,000) together exceed the value of the car five times over. Annual road tax adds S$868/year for 10 years. Use the ARF Calculator with any OMV to see the full breakdown.
Example 2: BMW 330i — ARF Sliding Scale on S$55,000 OMV
A new BMW 330i with 1,998cc turbocharged engine, OMV S$55,000. Category B COE premium: S$108,000.
The ARF sliding scale hits hard above S$50,000 OMV — the 220% tier turns S$5,000 in OMV into S$11,000 in ARF. A BMW with a S$100,000 OMV would pay S$172,000 in ARF alone. The progressive structure is designed to discourage luxury car ownership and fund public transport. Use the ARF Calculator to see how the 220% tier affects your target car.
Example 3: Tesla Model 3 — EV Road Tax vs Equivalent Petrol Car
A Tesla Model 3 Standard Range Plus (211kW / 283bhp). An equivalent petrol sedan: Toyota Camry 2.5L (2,487cc / 152kW).
The Tesla pays S$164 less in annual road tax than the equivalent petrol Camry, thanks to the 20% EV rebate. Over 10 years, the savings are S$1,640 — modest but combined with zero petrol costs (approximately S$2,500-S$3,000/year saved on fuel), the total EV advantage is significant. Use the EV Road Tax Calculator for your specific EV model and the Petrol Road Tax Calculator for comparison.
3 Expert Tips for COE, ARF and Road Tax Planning in Singapore
Bid at Off-Peak COE Exercises — February and September Historically Have Lower Premiums
COE prices fluctuate based on seasonal demand. Historically, February (after Chinese New Year spending) and September (post-school holiday) tend to have slightly lower bidding intensity. The difference can be S$3,000-S$8,000 — meaningful on a S$95,000 premium. Monitor the COE Price Estimator trend chart and time your purchase for dips rather than peaks. Also: the 2nd bidding exercise of the month sometimes settles lower than the 1st if early bids over-corrected.
The ARF 220% Tier Makes Cars Above S$50,000 OMV Dramatically More Expensive — Stay Below if Budget-Conscious
The jump from 140% (S$20K-S$50K OMV) to 220% (above S$50K OMV) is the steepest cliff in Singapore car taxation. A car with S$49,000 OMV pays S$60,600 in ARF. A car with S$55,000 OMV pays S$73,000 — a S$12,400 increase for just S$6,000 more OMV. If you are deciding between two models and one has OMV just above S$50,000, the marginal ARF cost is enormous. Ask your dealer for the exact OMV before committing and check with the ARF Calculator.
EVs Save S$2,500-S$4,000/Year in Fuel Plus Lower Road Tax — But Check the COE Category Carefully
Most EVs fall into Category B (above 97kW power output), which has higher COE premiums than Category A. A Tesla Model 3 at 211kW is firmly in Cat B (S$108,000+ COE). Only very small EVs with power below 97kW qualify for the cheaper Cat A COE. When comparing petrol vs EV total cost, factor in: higher Cat B COE (if applicable), lower road tax (20% EV rebate), zero fuel cost (S$2,500-S$4,000/year savings), and the EEAI rebate (up to S$7,500 off registration).
16 Frequently Asked Questions About COE, ARF and Car Road Tax in Singapore
What is a COE and why is it so expensive?
A Certificate of Entitlement is a licence granting the right to register and own a vehicle in Singapore for 10 years. COEs are expensive because supply is strictly limited by the government to control the vehicle population. With high demand and limited quota, bidding drives prices to S$80,000-S$115,000 depending on the vehicle category.
What are the COE categories?
Category A covers cars up to 1,600cc and 97kW. Category B covers cars above 1,600cc or 97kW. Category C covers goods vehicles and buses. Category D covers motorcycles. Category E is open to any vehicle type. Most passenger cars fall into Cat A or Cat B.
How does COE bidding work?
Bidders submit their maximum price through dealers or the LTA portal. At the close of bidding, the lowest successful bid that fills the quota becomes the Quota Premium. All successful bidders pay this uniform price regardless of their individual bid. Unsuccessful bidders receive a full refund of their deposit.
What is the ARF and how is it calculated?
The Additional Registration Fee is a one-time tax based on the vehicle Open Market Value. The sliding scale is: 100% on the first S$20,000 of OMV, 140% on S$20,001 to S$50,000, and 220% on OMV above S$50,000. This progressive structure makes luxury vehicles dramatically more expensive to register.
What is the Open Market Value?
The OMV is the price of the vehicle at the point of import into Singapore, as assessed by Singapore Customs. It represents the value of the car before any local taxes, COE, dealer markup, or accessories. The OMV determines the ARF payable and is published by LTA for each vehicle model.
What is the PARF rebate?
The Preferential Additional Registration Fee rebate is a partial refund of ARF when you deregister a vehicle before 10 years. The rebate ranges from 75% of ARF if deregistered within 5 years to 50% at 10 years. After 10 years, no PARF rebate is available. This incentivises scrapping older vehicles and renewing the fleet.
How is car road tax calculated for petrol vehicles?
Road tax for petrol and diesel cars is based on engine capacity (cc) using a progressive formula with multiple tiers. Smaller engines pay less per cc. As a guide: 1,600cc pays approximately S$742/year, 2,000cc pays approximately S$1,206/year, and 3,000cc pays approximately S$2,862/year. The exact formula is set by LTA.
How is road tax calculated for electric vehicles?
EV road tax uses a power-to-cc equivalence formula set by LTA, converting the motor power in kW to an equivalent cc value. The standard road tax formula is then applied to the equivalent cc. EVs currently receive a 20% road tax rebate, making EV road tax lower than an equivalent-powered petrol car.
Is there a road tax surcharge for older vehicles?
Yes. Vehicles older than 10 years are subject to a road tax surcharge of 10% in the 11th year, increasing by 10 percentage points each year up to a maximum of 50% from the 14th year onwards. This surcharge discourages keeping very old vehicles on the road and encourages renewal.
Can I renew my COE instead of scrapping the car?
Yes. At the 10-year mark, you can renew your COE for another 5 or 10 years at the Prevailing Quota Premium (PQP), which is the average of the last 3 months of COE bidding results. A 5-year renewal costs half the PQP. However, a renewed COE vehicle loses its PARF rebate and faces the road tax surcharge.
What is the total cost of owning a car for 10 years in Singapore?
For a typical 1.6L car in 2026: COE S$95,000 + ARF S$25,000 + car price S$45,000 + insurance S$15,000 (10yr) + road tax S$7,500 (10yr) + petrol S$25,000 (10yr) + maintenance S$10,000 (10yr) + parking S$15,000 (10yr) = approximately S$237,500. This works out to about S$2,000/month. Many Singaporeans find ride-hailing cheaper.
What is the EEAI rebate for electric vehicles?
The EV Early Adoption Incentive provides a registration rebate of up to S$7,500 (capped at 45% of the ARF) for fully electric vehicles registered by 31 December 2027. This reduces the upfront cost of EVs. The EEAI rebate is applied automatically when the EV is registered with LTA.
Why are Singapore car prices the highest in the world?
Singapore car prices are the highest due to the combination of COE (S$80K-S$115K), ARF (100-220% of OMV), excise duty (20% of OMV), GST (9%), and registration fees. These taxes are deliberately set high to limit the vehicle population on a small island with limited road space. The government uses these revenues to fund public transport infrastructure.
Do motorcycles also need a COE?
Yes. Motorcycles require a Category D COE, which is typically much cheaper than car COEs — approximately S$8,000-S$12,000 in 2026. Motorcycles also pay ARF (based on OMV) and annual road tax (based on engine capacity), but at significantly lower rates than cars.
Can foreigners buy cars in Singapore?
Yes. Foreigners can buy and register cars in Singapore provided they have a valid driving licence. There are no restrictions on COE bidding or vehicle ownership based on nationality. However, the high cost of car ownership means most foreigners find it more practical to use public transport or ride-hailing services.
What is the VES scheme and how does it affect car prices?
The Vehicle Emissions Scheme (VES) applies rebates or surcharges based on a vehicle emissions. Cleaner vehicles (Band A1/A2) receive rebates of S$5,000-S$25,000 off the ARF. High-emission vehicles (Band C1/C2) face surcharges of S$10,000-S$25,000 added to the ARF. The VES directly affects the final registration cost and makes cleaner vehicles more affordable.
Related Vehicle Tax and Transport Calculators for Singapore
Legal Disclaimer and Editorial Transparency
COE bidding system, categories, and quota premium mechanics per Land Transport Authority (LTA) published guidelines. ARF sliding scale rates (100%/140%/220%) per LTA registration framework. Road tax formulas for petrol and electric vehicles per LTA. PARF rebate schedule per LTA vehicle deregistration rules. EV road tax rebate of 20% per LTA EV incentive programme. EEAI rebate of up to S$7,500 per LTA. VES rebates and surcharges per LTA and NEA. OMV determination per Singapore Customs. COE premium estimates are based on historical patterns and are not guaranteed. Vehicle prices include dealer markup and may vary by dealership. This guide is for informational and educational purposes only. It does not constitute financial or automotive advice. Consult LTA or an authorised motor dealer for your specific vehicle registration. Published by MAFHH INTERNATIONAL LTD. Editorially independent. We do not collect any data you enter into our calculators.
