Singapore is the most expensive country in the world to own a car, and it’s not only because of the Certificate Of Entitlement (COE) system. One other reason why cars in Singapore are so expensive is the Additional Registration Fee, commonly known as the ARF.
The ARF is a tax imposed on all vehicles, including cars, motorcycles, scooters, taxis, buses and commercial vehicles, during its registration. It is calculated based on the vehicle’s open market value (OMV) and type.
ARF For Cars & Taxis In Singapore
For cars and taxis in Singapore, the ARF to be paid is as follows.
| Vehicle Open Market Value (OMV) | ARF Rate (% of OMV to pay) |
| First $20,000 | 100% |
| Next $20,000 ($20,001 to $40,000) | 140% |
| Next $20,000 ($40,001 to $60,000) | 190% |
| Next $20,000 ($60,001 to $80,000) | 250% |
| Above $80,000 ($80,001 and above) | 320% |
For example, for an entry-level vehicle like the Toyota Corolla Altis, which has an OMV of $19,192, the ARF would be $19,192. For a luxury sedan like the Mercedes E-Class, which has an OMV of $61,147, the ARF is much higher at $88,868.
| First $20,000 | $20,000 (100%) |
| Next $20,000 ($20,001 to $40,000) | $28,000 (140%) |
| Next $20,000 ($40,001 to $60,000) | $38,000 (190%) |
| Next $20,000 ($60,001 to $80,000) | $$2,868 (250% of $1,147) |
| ARF | $88,868 |
Taxis and Goods-cum-passenger vehicles share the same ARF structure as cars.
ARF For Motorcycles & Scooters
ARF for motorcycles and scooters are as follows.
| Vehicle Open Market Value (OMV) | ARF Rate (% of OMV to pay) |
| First $5,000 | 15% |
| Next $5,000 ($5,001 to $10,000) | 50% |
| Above $10,000 ($10,001 and above) | 100% |
ARF For Buses & Commercial Vehicles
For most buses and commercial vehicles, the ARF is 5% of OMV.
Read Also: Cost Guide To Buying A Commercial Vehicle In Singapore
How The Vehicular Emission Scheme (VES) Can Affect ARF
The Vehicular Emission Scheme (VES) can affect the final ARF that is payable on a car. The VES is introduced to encourage people to buy a car (or taxi) that emits fewer pollutants. Depending on the band your vehicle is categorised in, you may be eligible for an ARF rebate or face a surcharge.
For cars that are registered from 1 January 2026 to 31 December 2027, the VES rebate or surcharge is as follows.
A car that qualifies for Band A is eligible for a $22,500 rebate. At times, the rebate may exceed the initial ARF payable.
For example, if you purchase the BYD Atto 2 Electric with an OMV of $22,036 and an ARF of $22,850, after considering a $22,500 CES rebate and an EV Early Adoption Incentive of $7,500, the ARF is zero.
If there is a VES surcharge, the ARF increases.
How ARF Affects Your PARF Rebate
The Preferential Additional Registration Fee (PARF) rebate provides an incentive for vehicle owner who deregister their car after 10 years.
The PARF rebate depends on the ARF paid and the date the car is deregistered. For a car that is deregistered at its 10-year mark, 50% of the ARF paid will be the PARF Rebate. Please note that for cars registered on or after 15 February 2023, the PARF rebate is capped at $60,000.
As announced in the Singapore Budget 2026, for cars registered with COEs obtained from the second COE bidding exercise in February 2026, the PARF rebate will be significantly lower, at 5-30%, depending on when you deregister. For a car that is deregistered at its 10-year mark, only 5% of the ARF paid will be the PARF Rebate. Also, the PARF rebate will be capped at $30,000
An important point to note is that if you enjoy a VES rebate, the PARF rebate you receive will be based on the net ARF you paid, taking into account the emission rebates.
However, if you pay an emission surcharge, your PARF rebate will be calculated based on the ARF paid, excluding this surcharge.
Read Also: Guide To Understanding Vehicle Emissions Scheme (VES) In Singapore
Top photo by Moo Kar Ming, DollarsAndSense
