Road tax is a recurring cost every car owner in Singapore must pay, typically every 6 months. Unlike one-time fees such as the ARF or COE, road tax is an ongoing expense for as long as you keep the car on the road.

For petrol and diesel vehicles, the rate is based on engine capacity measured in cubic centimetres (cc). The system is progressive — a 1,598cc car (the Cat A ceiling) pays roughly S$742 per year, while a 2,000cc car pays about S$1,206. This jump is one reason why the 1,600cc threshold between Category A and Category B matters so much to buyers.

Electric vehicles use a separate formula based on motor power output in kilowatts, which generally results in lower road tax than an equivalent petrol car. Factor road tax into your total cost of ownership to see how this recurring expense adds up over a full 10-year COE cycle.