Hong Kong Car Tax Guide: First Registration Tax (FRT) & License Fees
Vehicle ownership in Hong Kong involves substantial upfront duties and ongoing licensing fees designed to manage road traffic density. For an overview of all Hong Kong tax categories and financial tools, visit our Hong Kong Country Hub. The primary vehicle duties administered by the Transport Department under the Motor Vehicles (First Registration Tax) Ordinance (Cap. 330) are First Registration Tax (FRT) and annual Vehicle License Fees.
First Registration Tax (FRT) Progressive Rates
First Registration Tax is a one-off tax levied on private cars when first registered in Hong Kong. The tax is calculated progressively on the taxable value (published retail price or assessed import value):
Step-by-Step FRT Calculation Example
To illustrate how First Registration Tax is calculated for a new petrol private car with an assessed taxable value (published retail price) of HK$350,000:
- First HK$150,000 Bracket (46%): HK$150,000 × 46% = HK$69,000
- Next HK$150,000 Bracket (HK$150,001–HK$300,000 @ 72%): HK$150,000 × 72% = HK$108,000
- Remaining HK$50,000 Bracket (HK$300,001–HK$350,000 @ 100%): HK$50,000 × 100% = HK$50,000
- Total First Registration Tax Payable: HK$69,000 + HK$108,000 + HK$50,000 = HK$227,000 (Effective FRT rate: 64.86%)
Electric Vehicle (EV) Concessions & One-for-One Scheme
To promote clean transportation, the Hong Kong Government provides First Registration Tax concessions for Electric Vehicles (EVs):
- Standard EV Concession: Private electric cars receive an FRT tax concession cap of up to HK$58,500.
- "One-for-One Replacement" Scheme: Owners who scrap and deregister an eligible old private car to replace it with a new electric car receive an enhanced FRT concession cap of up to HK$172,500.
Note: EV concession amounts and eligibility rules are subject to periodic review by the Environment and Ecology Bureau and Transport Department. Vehicle buyers should verify current concession caps directly via the official Transport Department EV Portal.
Annual Motor Vehicle Licensing Fees (MVT)
Annual vehicle license renewal fees for petrol private passenger cars are determined by engine cylinder capacity (CC):
- Engine Capacity ≤ 1,500cc: HK$5,074 / year
- 1,501cc – 2,500cc: HK$7,019 / year
- 2,501cc – 3,500cc: HK$8,964 / year
- 3,501cc – 4,500cc: HK$10,910 / year
- Above 4,500cc: HK$12,855 / year
Transport Department Registration Procedures
Vehicle buyers must submit registration documents, proof of third-party insurance, vehicle inspection certificates (for vehicles aged 6+ years), and payment of FRT and license fees to the Transport Department licensing office. For digital tax filing and account management tools, see our Hong Kong eTAX Portal Guide.