Hong Kong · Free tool
Hong Kong First Registration Tax Calculator
Enter a car’s taxable value — or the dealer’s Hong Kong price — and see the FRT, band by band, on the rates in force in 2026.
Results update as you type. Nothing is sent anywhere — the sum runs in your browser.
Enter a figure above to see the tax, band by band. Try HK$236,500 — the taxable value behind a Toyota RAV4 HEV Adventure at its Hong Kong list price.
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The 2026 FRT bands for private cars
The rates below took effect at 11am on 24 February 2021 and have not been changed since. They are marginal: each rate applies only to the slice of taxable value that falls inside its band, in the same way UK income tax works. A great many Hong Kong price explainers get this wrong and apply a single headline rate to the whole value.
| Taxable value band | Tax rate | Tax on a full band |
|---|---|---|
| First HK$150,000 | 46% | HK$69,000 |
| Next HK$150,000 (HK$150,001–HK$300,000) | 86% | HK$129,000 |
| Next HK$200,000 (HK$300,001–HK$500,000) | 115% | HK$230,000 |
| Remainder (above HK$500,000) | 132% | — |
Filling all three finite bands — a taxable value of HK$500,000 — produces HK$428,000 of tax, an effective rate of 86%. Above that, every further dollar of value costs HK$2.32 all in.
Three real Hong Kong cars, priced out
Hong Kong distributors quote FRT-inclusive prices, so the number on the price list already contains the tax. Reversing the band schedule recovers the taxable value behind it — and in each case below it lands on an exact round figure, which is the check that the split is right.
| Car | HK list price | Taxable value | FRT | Tax share |
|---|---|---|---|---|
| Toyota RAV4 HEV Adventure Crown Motors HK launch price, May 2026 | HK$379,890 | HK$236,500 | HK$143,390 | 38% |
| Toyota RAV4 HEV Limited Crown Motors HK launch price, May 2026 | HK$419,880 | HK$258,000 | HK$161,880 | 39% |
| Mercedes-Benz GLC 250 (electric) Indicative HK order price, June 2026 — full FRT, no EV concession | HK$799,000 | HK$440,000 | HK$359,000 | 45% |
Take the RAV4 Adventure. Its taxable value of HK$236,500 fills the first band completely (HK$150,000 × 46% = HK$69,000) and pushes HK$86,500 into the second (× 86% = HK$74,390). Total FRT HK$143,390, which added back to the taxable value gives exactly the HK$379,890 on the price list. Nearly two of every five dollars go to the government.
The electric GLC is the more instructive one. Registered before April 2026 it would have qualified for an FRT concession worth up to HK$58,500, or up to HK$172,500 under the One-for-One Replacement Scheme. Registered now, it pays the full HK$359,000.
What counts towards the taxable value
This is the number expats most often get wrong, because it is not the price you negotiated and not the price you paid abroad. It is a value assessed by the Customs and Excise Department, which the Transport Department then taxes.
- Buying from a Hong Kong distributor. The taxable value is based on the published retail price the distributor is required to file with Customs before offering the car for sale. Customs assesses a provisional taxable value from it and issues a notification, which the Transport Department uses to calculate and collect the tax. Discounting the car does not reduce the tax.
- Importing a car yourself. Customs builds the provisional taxable value up from the purchase price plus insurance, freight, brokerage or agency fees, and any repair charges connected to the purchase and importation. If the declared value does not reflect the Hong Kong market value, Customs may substitute its own figure, taking account of the vehicle’s age and the retail price in the country of origin.
- Depreciation on a car you already owned. Where the car was registered in your name outside Hong Kong before importation and you can produce the overseas registration document, Customs may allow depreciation from the date of overseas registration to the date of importation — 25% a year for petrol vehicles, 20% a year for non-petrol vehicles.
- Accessories. Extras fitted within six months of first registration can themselves be taxed. Loading up a new car with dealer-fitted options is not a way around the band structure.
- Used cars already registered in Hong Kong. No FRT at all. The tax is charged once, at first registration. This is the single biggest reason an expat on a two- or three-year posting should look hard at the used market before ordering new.
What the February 2026 Budget changed for electric cars
The 2026-27 Budget, delivered on 25 February 2026, confirmed that the FRT concessions for electric private cars — including the One-for-One Replacement Scheme — would not be extended beyond their expiry on 31 March 2026. This is the change that reset the sum for anyone budgeting an EV in Hong Kong.
- Private electric cars. Applications for first registration submitted on or after 1 April 2026 get no FRT concession. Full standard bands apply, exactly as the calculator above computes them.
- The one-off transitional arrangement. Electric private cars ordered on or before 25 February 2026, or already arranged by the owner to be shipped to Hong Kong for their own use, can still be taxed at the pre-adjustment concession — provided the supporting documents and application reach the Transport Department by 24 February 2027 and are approved. If you ordered before the Budget and have not yet registered, this deadline is the one to diarise.
- Commercial EVs are unaffected. FRT for electric commercial vehicles, electric motorcycles and electric motor tricycles remains fully waived until 31 March 2028.
- What it was worth. Between 1 April 2024 and 31 March 2026 the general concession for electric private cars was capped at HK$58,500, rising to HK$172,500 for owners qualifying under the One-for-One Replacement Scheme. That is the size of the step-up a private EV buyer now absorbs.
Practical consequence: the EV-versus-petrol price gap that the concession used to close has reopened, while Hong Kong petrol prices have stayed high. The running-cost case for an EV survives; the up-front case is weaker than it was in 2025. Run both numbers before committing — and if you are comparing against leasing instead, the lease-versus-buy calculator does that side of the sum.
Frequently asked questions
How do you calculate first registration tax in Hong Kong?
FRT is charged on the vehicle’s taxable value in four marginal bands: 46% on the first HK$150,000, 86% on the next HK$150,000, 115% on the next HK$200,000, and 132% on anything above HK$500,000. Each rate applies only to the slice of value inside that band, so a car with a taxable value of HK$236,500 pays HK$69,000 on the first band plus HK$74,390 on the second — HK$143,390 in total.
Is the dealer’s price in Hong Kong before or after first registration tax?
Hong Kong distributors quote FRT-inclusive prices, so the figure on the price list is already taxable value plus FRT. That is why this calculator works in both directions: enter a taxable value to get the tax, or enter the dealer’s all-in price to see how much of it is tax.
Do electric cars still get an FRT concession in Hong Kong in 2026?
Not for private cars. The 2026-27 Budget, announced on 25 February 2026, confirmed the FRT concessions for electric private cars — including the One-for-One Replacement Scheme — would not be extended beyond their expiry on 31 March 2026. First-registration applications submitted on or after 1 April 2026 pay full FRT. Electric commercial vehicles, electric motorcycles and electric motor tricycles keep a full FRT waiver until 31 March 2028.
Do you pay first registration tax on a used car in Hong Kong?
No. FRT is a one-off charge levied at first registration. A car already registered in Hong Kong has had its FRT paid, and no further FRT is due when it changes hands. That is the main reason the Hong Kong used-car market is so active among expats on short postings.
What counts towards the taxable value of a car in Hong Kong?
For a car bought from a Hong Kong distributor, the taxable value is based on the published retail price, with the provisional taxable value assessed by the Customs and Excise Department. For a car you import yourself, Customs builds the value up from the purchase price plus insurance, freight, brokerage or agency fees and any repair charges. Accessories fitted within six months of first registration can also be taxed.
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Sources
- FRT rates for private cars — Immediate adjustment to first registration tax rates for private cars, HKSAR Government, 24 February 2021.
- EV concession position — First registration tax concession arrangement for electric vehicles, HKSAR Government, 25 February 2026 (2026-27 Budget).
- Taxable value and vehicle valuation — Hong Kong Customs and Excise Department, Motor Vehicles, and GovHK, Become a Car Owner in Hong Kong.
- Vehicle registration and licence fees — Transport Department, Fees and Charges.
- Toyota RAV4 HEV Hong Kong launch prices, 21 May 2026, and Mercedes-Benz GLC 250 electric indicative Hong Kong price, 11 June 2026 — Car1.hk.
Rates checked 5 August 2026. FRT is a statutory tax and the taxable value is determined by the Customs and Excise Department, not by the dealer’s asking price. Treat this calculator as a planning tool and confirm the assessed value with the Transport Department before committing to a purchase.