Road Tax
An annual charge based on the vehicle's engine capacity (or electric motor power for EVs). It is payable for every year the car is kept, regardless of how much you drive.
Car Ownership Guide
Road Tax and Running Costs for Your Imported Car in Singapore
Published: 11 Sep 2026
The purchase price and the one-off import taxes are only part of the picture. Once your car is on the road, a steady stream of recurring costs — road tax, fuel, insurance and maintenance — will shape the true cost of ownership over the years.
This guide breaks down the main running costs of owning an imported car in Singapore and how to budget for them.
The Main Recurring Costs
These are the costs that recur year after year. Together they often exceed the one-off import fees over the life of the car, so they deserve as much attention in your planning as the initial outlay.
COE Renewal and PARF
For cars approaching the end of their COE, renewing the COE is a significant ongoing consideration. The eventual deregistration and any PARF rebate also feed into the lifetime cost.
Fuel or Charging
Petrol, diesel or electricity is the largest recurring outlay for most owners. Imported cars with large or inefficient engines can be noticeably more expensive to run.
Insurance
Comprehensive motor insurance in Singapore is required by law. Imported cars can sometimes be harder to insure or attract different premiums depending on age, parts and specification.
Servicing and Spare Parts
Parts and specialist labour for an imported model may be less readily available than for mainstream local cars, which can push up maintenance costs over time.
ERP, Parking and Other Charges
Electronic Road Pricing, parking, and occasional fees such as inspection and roadworthiness checks add to the running total throughout the vehicle's life.
How Road Tax Is Calculated
Road tax in Singapore is an annual charge that depends mainly on the vehicle’s engine capacity for combustion cars, or on the motor power rating for electric vehicles. The rate is progressive, so larger-engined cars pay proportionally more than smaller ones.
Because imported cars often come from overseas markets with different engine line-ups, it is easy to end up with a model that is far more expensive to tax than a comparable locally-sold car. Checking the road tax before you buy can avoid an unwelcome surprise. For an estimate, our road tax calculator can help you work out the figure for your vehicle.
Why Imports Can Be Costlier to Run
There is no universal rule that imports cost more to run, but several factors often push the ongoing costs higher. Larger or more powerful engines mean higher road tax and fuel use. Less common models can have pricier or harder-to-find spare parts and fewer specialist workshops. And an older vehicle tends to need more frequent servicing, which can add up quickly.
Our guide to depreciation and PARF for imported cars explains how the value of the car declines over time, which is another important part of the lifetime cost picture.
Budgeting Tips
A realistic running-cost budget makes the difference between a smooth ownership experience and a financial surprise. Keep these points in mind:
| No. | Budgeting Tip |
|---|---|
| 1 | Set aside a running-cost budget that covers road tax, insurance and maintenance in addition to the purchase price |
| 2 | Check parts availability and specialist service options for the specific model before you commit |
| 3 | Consider how COE renewal and eventual deregistration will affect the lifetime cost |
| 4 | Compare the running costs of a comparable locally-sold model to judge whether an import is worth it |
| 5 | Factor in whether the vehicle's age will push up insurance premiums or maintenance frequency |
Budgeting for Your Import?
Start with the one-off import cost using our car import calculator, then speak to our consultants about road tax, insurance and the longer-term running costs for the specific model you have in mind.
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