Singapore Car Tax 2026: ARF Up to 220% + COE S$100,000 Guide

April 29, 2026 in Singapore — Singapore has the most expensive car ownership in the world, not because of high vehicle prices, but because of a complex tax and quota system designed to control vehicle numbers. The combination of ARF (Additional Registration Fee) at up to 220% of OMV and COE (Certificate of Entitlement) premiums exceeding S$100,000 means a S$50,000 car in Singapore actually costs S$200,000+ before you drive it home.

Singapore's Vehicle Quota System: Why Cars Are Expensive

Singapore limits the total number of vehicles through a strict quota system. Instead of taxing cars heavily, the government limits how many can be on the road. The COE system creates artificial scarcity — and high prices — by auctioning the right to own a car.

The LTA (Land Transport Authority) controls the number of COEs available each month based on a vehicle population growth rate (currently 0% — meaning the number of vehicles doesn't increase). This scarcity drives COE prices to S$100,000+.

Additional Registration Fee (ARF) Structure

ARF is a tiered tax based on the OMV (Open Market Value) assessed by Singapore Customs when the car was first imported:

OMV Tier	OMV Range	ARF Rate	ARF on this tier
Tier 1	First S$20,000	220%	S$44,000
Tier 2	S$20,001 - S$50,000	180%	S$54,000
Tier 3	Above S$50,000	140%	Variable

Example calculation for a car with S$35,000 OMV: Tier 1 S$44,000 + Tier 2 (S$15,000 x 180% = S$27,000) = S$71,000 total ARF.

For a car with S$80,000 OMV: Tier 1 S$44,000 + Tier 2 S$54,000 + Tier 3 (S$30,000 x 140% = S$42,000) = S$140,000 total ARF.

COE Categories and Current Premiums

Category	Description	Typical OMV Range	COE Premium
Cat A	Cars up to 1,600cc, up to 97kW	S$15,000-S$40,000	S$95,000-S$105,000
Cat B	Cars above 1,600cc or >97kW	S$35,000-S$80,000	S$105,000-S$120,000
Cat C	Goods vehicles, buses	Varies	S$40,000-S$60,000
Cat D	Motorcycles	S$2,000-S$8,000	S$8,000-S$12,000

COE premiums are bid up in monthly auctions. Prices fluctuate based on demand and economic conditions. In 2026, Cat A and Cat B COEs have consistently exceeded S$100,000.

Total Cost on Top of Vehicle Price

OMV	ARF	COE (est.)	Total Above OMV	Multiplicative Factor
S$20,000	S$44,000	S$100,000	S$144,000	8.2x OMV
S$40,000	S$80,000	S$100,000	S$180,000	5.5x OMV
S$60,000	S$112,000	S$110,000	S$222,000	4.7x OMV

A car with S$40,000 OMV (typical mid-range sedan) costs S$180,000 in ARF + COE alone — before you even pay for the vehicle. A S$80,000 OMV premium car might cost S$250,000+ in taxes alone.

VES Rebate for Low-Emission and EV Vehicles

The Vehicle Emissions Scheme (VES) rewards low-emission vehicles and penalises high-emission ones:

VES Band	CO2 g/km	VES Amount	Effect on ARF
Band A1 (best)	Very low	S$45,000 rebate	Reduces ARF by S$45,000
Band A2	Low	S$25,000 rebate	Reduces ARF by S$25,000
Band B	Moderate	S$10,000 rebate	Reduces ARF by S$10,000
Band C1	Higher	S$0 (neutral)	No change to ARF
Band C2	High	S$15,000 surcharge	Adds S$15,000 to ARF
Band D	Very high	S$30,000 surcharge	Adds S$30,000 to ARF

All electric vehicles qualify for the best VES bands (A1 or A2), meaning they receive rebates of S$25,000-S$45,000 off their ARF. This significantly reduces the total cost of an EV in Singapore.

PARF: Rebate When Deregistering

When you deregister a vehicle in Singapore, you receive a PARF (Preferential Additional Registration Fee) rebate based on the remaining COE period:

Remaining COE	PARF Rebate	Notes
7+ years	Up to 70% of ARF paid	Early deregistration reward
5-7 years	50-70% of ARF	Standard partial rebate
3-5 years	25-50% of ARF	Lower rebate
Under 3 years	Minimum rebate	Low PARF

If you buy a 10-year COE car and deregister it after 8 years (2 years remaining), you receive minimal PARF. If you deregister after 3 years with 7 years remaining, you receive maximum PARF — encouraging early replacement of older vehicles.

Conclusion

Singapore's car tax system is designed to limit vehicle ownership through scarcity. ARF charges up to 220% of OMV, making even modest cars cost S$150,000+ in taxes alone. COE premiums of S$100,000+ add to this. EVs receive VES rebates of up to S$45,000, making them the most cost-effective option in Singapore. A petrol car with S$40,000 OMV costs approximately S$220,000 above its show-room price before you drive it. Use our Singapore Car Tax Calculator to estimate your total costs.

Disclaimer: COE premiums and ARF rates based on LTA and Singapore Customs data as of April 2026. COE prices fluctuate monthly — confirm current COE auction results at lta.gov.sg.

Official Resources: Land Transport Authority Singapore | Singapore Customs OMV | Vehicle Registration Services

Questions

What is ARF in Singapore and how is it calculated?

ARF (Additional Registration Fee) is a tiered tax on the Open Market Value (OMV) of a vehicle in Singapore. Tier 1 charges 220% of the first S$20,000 of OMV, Tier 2 charges 180% of the next S$30,000, and Tier 3 charges 140% of the remaining OMV. For a car with S$30,000 OMV, ARF is S$44,000 + S$18,000 + S$0 = S$62,000.

How much is COE in Singapore in 2026?

COE (Certificate of Entitlement) premiums in 2026 are among the highest ever recorded. Category A (cars up to 1,600cc) COE has exceeded S$100,000 in recent auctions. Category B (cars over 1,600cc) COE has exceeded S$110,000. COE gives you the right to own and use a vehicle for 10 years. After 10 years, you must renew COE or deregister.

What is the VES rebate for EVs in Singapore?

VES (Vehicle Emissions Scheme) provides rebates or surcharges based on a vehicle's CO2 emissions. In 2026, EVs qualify for rebates of up to S$45,000 (rebate band) which offsets part of the ARF cost. This significantly reduces the total cost of owning an EV in Singapore versus a petrol car.

Can I avoid ARF by buying a cheap car in Singapore?

No. ARF is calculated as a percentage of the OMV (Open Market Value), so even low-value cars pay ARF. A car with S$15,000 OMV still pays 220% on S$15,000 = S$33,000 in ARF. The only way to minimise ARF is to buy a car with a low OMV — typically smaller or less premium vehicles.

How does COE quota work in Singapore?

Singapore controls the total number of vehicles through a monthly COE quota system. The Land Transport Authority (LTA) determines how many COEs are available each month based on vehicle population growth targets (currently 0% growth). bidders compete in an open auction, and the highest bidders win COEs. This creates the high COE premiums seen in Singapore.

What is the total extra cost above the car price in Singapore?

For a typical family car with S$30,000 OMV: ARF (S$62,000) + COE (S$100,000+) = S$162,000+ above the car's pre-tax price. This means a car with a show-room price of S$50,000 actually costs S$200,000+ before even arriving in Singapore. The OMV is the base import value assessed by Singapore Customs.

Is COE refundable in Singapore?

Partially. If you deregister your vehicle before the COE expires, you receive a PARF (Preferential Additional Registration Fee) rebate from LTA. The PARF is calculated based on the remaining COE period — the longer your COE has left, the larger the PARF. PARF can be significant (S$30,000-50,000+) for cars with many years remaining on their COE.

Do used cars in Singapore have lower ARF and COE?

When buying a used car in Singapore, the buyer pays the current market ARF (based on the original OMV, not the used car price) plus the remaining COE cost. The COE is tied to the car, not the buyer, so when you buy a used car you inherit whatever COE remains. The ARF is always calculated on the original OMV, not the current transfer price.