First Registration Tax Calculator

Motor vehicle registration in Hong Kong is regulated under the Motor Vehicles (First Registration Tax) Ordinance (Cap. 330) and enforced by the Transport Department. First Registration Tax (FRT) is a one-off tax imposed on the publication or verified taxable value of any vehicle registered in Hong Kong for the first time.

For private cars, FRT is structured as a steep progressive tax designed to curb road congestion and disincentivize private vehicle ownership. Rates scale rapidly from 40% on the first HK$150,000 of taxable value to a staggering 115% on any value exceeding HK$500,000. Consequently, luxury motor vehicles frequently incur tax liabilities exceeding the base purchase price of the car itself.

To accelerate environmental sustainability, the Government launched the Electric Vehicle (EV) One-for-One Replacement Scheme. Under the latest Budget arrangements (effective through March 2026), vehicle owners who scrap and deregister an eligible old internal combustion engine (ICE) car can claim an FRT concession of up to HK$172,500 on a new electric private car (or HK$58,500 general EV concession for buyers without an old car), subject to a pre-tax vehicle price cap of HK$500,000. Explore our comprehensive First Registration Tax & EV One-for-One Guide, review broader vehicle expenses in our Hong Kong Car Tax Complete Guide, and inspect property conveyance duties in our Scale 2 AVD Guide.

Accurately estimate vehicle FRT and EV One-for-One concession savings:

1. Enter Vehicle Taxable Value: Input the vehicle's published retail price or open market taxable value (excluding FRT itself) in Hong Kong Dollars (HK$).
2. Select Powertrain / Fuel Type: Choose between Petrol / Diesel / Hybrid or Electric Vehicle (EV).
3. Select Concession Scheme: If buying an EV, select whether you qualify for the One-for-One Replacement Scheme (up to HK$172,500 waiver) or the standard EV concession (up to HK$58,500).
4. Select Vehicle Type: Confirm Private Car or Commercial Vehicle (van, lorry, taxi, which pay a flat 15% rate).
5. Click Calculate: Instantly inspect your gross FRT before concession, allowable EV tax waiver, net FRT payable, effective tax rate, and total on-the-road vehicle price.

Your calculation output itemizes the exact vehicle tax breakdown assessed by the Transport Department:

The Motor Vehicles (First Registration Tax) Ordinance sets out the following progressive tariff for private cars:

Current Electric Vehicle (EV) Concession Thresholds (Extended to March 2026):

• EV One-for-One Replacement Scheme: Maximum FRT concession of HK$ 172,500 for owners scrapping an eligible old vehicle (registered ≥6 years, owned ≥18 months).
• General EV Concession (Without Scrapping): Maximum FRT concession of HK$ 58,500.
• EV Price Ceiling Cap: Under Budget 2024/25, electric private cars with a taxable value exceeding HK$ 500,000 are ineligible for any EV tax concessions.

To see how FRT progressive brackets and EV concessions calculate in practice:

• Updated 2025/2026 Concession Schedules: Factors in the revised HK$172,500 One-for-One ceiling and HK$500,000 eligibility cap.
• True Total Cost Transparency: Calculates exact gross FRT, net tax payable, and total drive-away on-the-road vehicle expenditure.
• Powertrain Comparison: Demonstrates tax differences between internal combustion engines and electric vehicles.
• Connected Automotive & Tax Guides: Cross-linked to our EV One-for-One Guide and HK Car Tax Hub.

• Commercial Vehicles: Goods vans, trucks, and buses are taxed at a flat 15% rate rather than private car progressive slabs.
• Annual Vehicle Licence Fees: Annual road tax (licence fees) is separate and determined by engine displacement (cc) or unladen weight for EVs.
• Import Duty Valuations: Used parallel import cars are assessed by Hong Kong Customs using statutory depreciation schedules (up to 50% for 5-year-old vehicles).

To claim the maximum HK$172,500 tax concession, the deregistered scrap vehicle must satisfy all Transport Department eligibility criteria:

• Forgetting the 115% Top Rate Band: Any option or value exceeding HK$500,000 incurs 115% tax. Adding HK$100,000 in leather seats or premium sound options costs HK$215,000 after FRT.
• Overlooking the HK$500k EV Price Cap: Under the 2024 Budget, electric cars with a taxable value exceeding HK$500,000 receive zero EV concessions, subjecting the entire price to standard progressive FRT.
• Purchasing an Ineligible 'One-for-One' Scrap Quota: Buying a scrap car quota on the open market from an individual who owned the vehicle for less than 18 continuous months will result in immediate rejection by the Transport Department.
• Ignoring Optional Accessories Tax Liability: Adding dealer-fitted accessories, alloy rims, window tinting, or ceramic coating before first registration must be declared on Form TD468 and is taxed at full progressive FRT rates.
• Confusing Taxable Value with Showroom Selling Price: The published retail price often includes the estimated FRT. If importing a vehicle independently, the Customs and Excise Department assesses Taxable Value based on factory invoice, ocean freight, insurance, and handling.

• Transport Department — First Registration of Vehicles — Official Procedures & Forms
• Environmental Protection Department — EV One-for-One Scheme — Eligibility Verification Portal
• Hong Kong Customs & Excise — Motor Vehicles Valuation — Taxable Value & Initial Assessment

Keep all vehicle registration documents (TD59), scrap certificates, and Customs valuation notices for vehicle resale and audit purposes.