Calculating Road Tax: Everything You Need to Know
Car owners must pay annual vehicle tax for their vehicles. The amount depends on various factors, including the type of vehicle and its CO2 emissions. In this article, we’ll cover everything you need to know about calculating vehicle tax.
Everything You Need to Know About Vehicle Tax
What is included in vehicle tax?
Vehicle tax can be viewed as a kind of umbrella tax category, of which road tax is also a part. As mentioned earlier, you pay road tax to enable the Dutch government to maintain the roads in good condition. You must also pay a tax when purchasing a motor vehicle: the tax on passenger cars and motorcycles (BPM). In addition, you pay excise taxes on the use of your car. The government collects these excise taxes through the price of fuel. Each year, the government sets these excise taxes, which can vary by fuel type.
If you own a company car and also use it for personal purposes, you must pay vehicle tax on it. The fundamental reason for this tax is that the personal use of the car is considered a source of income. In this case, you must add a certain percentage of the list price to your taxable income on an annual basis.
How is the vehicle tax calculated?
Road tax is calculated based on a vehicle’s CO2 emissions. The higher the emissions, the higher the road tax. The type of vehicle also plays a role. For example, electric and hybrid cars usually have lower road tax than gasoline or diesel cars.
How can I calculate the vehicle tax based on the license plate number?
The official name for road tax is motor vehicle tax, abbreviated as MRB. If a motor vehicle is registered in your name, you are required to pay this tax. The rate you are required to pay varies by vehicle. This depends, among other things, on the vehicle’s fuel type and weight. Starting on the date the license plate is registered in your name, you pay a certain amount of road tax each month or each quarter.
You can calculate vehicle tax using the license plate number. Onthis website, you can enter the license plate number and calculate the vehicle tax completely free of charge. The amount varies by province. You’ll see an overview, broken down by province, of the tax rate per quarter and per year. The rate is the same whether you pay annually or quarterly.
What are the conditions for an exemption?
If you are not granted an automatic exemption, you canapply for an exemption onlinethrough the Tax Authority.
There are a number of motor vehicles for which you can obtain an exemption from road tax. These are:
Classic cars that are 40 years old or older
All-electric cars
(exemption through 2020)
Trailers weighing less than 750 kg
Travel Trailers
Police cars, fire trucks, and (animal) ambulances
Hearses
Vortex Suction Pumps
Garbage Trucks and Street Weighing Trucks
Vehicles for road maintenance and construction
Frequently Asked Questions About Vehicle Tax
Do I have to pay road tax on a classic car?
When calculating theroad tax for classic cars, you may not have to pay any road tax at all. For classic cars that are 40 years old or older, for example, you do not have to pay road tax. This is because classic car owners often do not drive their cars very much. All classic cars that were first registered at least 40 years ago are automatically exempt. If you use the classic car for business purposes, the exemption no longer applies.
In 2014, the age at which classic cars are exempt from road tax was changed from 25 to 40 years. Classic car owners who had previously been exempt suddenly had to start paying road tax again.A special provision—the transitional arrangement—was created for these individuals. All classic cars that run on gasoline, are not used for commercial purposes, and were first put into service between January 1, 1978, and January 1, 1988, are eligible for the transitional scheme. As a result, classic car owners pay significantly less road tax than the standard amount.
What is the difference between motor vehicle tax and road tax?
Motor vehicle tax is an official term established by law. The term “motor vehicle tax” is also sometimes referred to as “road tax.” The tax authorities use only the term “motor vehicle tax.” It is important not to get confused by these two terms, because they mean exactly the same thing.
Is the RDW responsible for collecting road tax?
The National Road Traffic Authority (RDW) is primarily responsible for registering vehicles and issuing license plates. The RDW is also the designated agency for verifying a car’s information. Would you like us to calculate your road tax? If so, we’ll retrieve your information from the RDW using your license plate number.
If you won’t be using your car for an extended period of time, you can have your license plate temporarily suspended with the RDW. With the suspension, you won’t have to pay road tax. You can also cancel your car insurance, and your obligation to get an APK inspection will be waived. It’s worth noting that the RDW is not responsible for collecting road tax.
How can I defer my vehicle tax?
Did you sell the car? If so, that also means you don’t have to pay road tax on that car. Since the car is no longer registered in your name, the tax authority will update its system accordingly, and your road tax will be canceled. If the tax authority has already deducted money from your account, that amount will be refunded. But if everything is in order, the synchronization between the RDW and the tax authority works smoothly, and all you need to do is notify the RDW.
When are you exempt from road tax?
Anyone who owns a motor vehicle must pay road tax. However, there is an exception to this rule. The motor vehicles for which you can obtain an exemption from paying road tax are classified as “classic cars,” meaning they were first put into service at least 40 years ago.
Fully electric cars or cars with a hydrogen combustion engine are also among the motor vehicles that are exempt from road tax. This rule is in effect through 2024. For plug-in hybrid cars, road tax may be paid at half the standard rate. Other motor vehicles that are exempt from road tax include:
- police and fire department vehicles;
- ambulances and animal ambulances;
- hearse;
- garbage trucks, street sweepers, and sewer vacuum trucks;
- motor vehicles used for road construction and maintenance.
Do you own a car that qualifies for an exemption from motor vehicle tax? If so, you can apply for this by submitting a request to the tax authorities. To do so, you must fill out the “Request for Motor Vehicle Tax Exemption” form.
How can you save money on road tax?
Do you want to save money on road tax? That’s certainly possible when buying a car. As mentioned earlier, the amount of road tax you pay varies by car. It all comes down to this: the heavier the car, the higher the road tax you’ll have to pay. So, if you choose a lighter car, you’ll pay much less in road tax.
As a result, the amount you save on road tax can amount to hundreds of euros. The specific type of fuel consumption also affects the amount of road tax you have to pay. It’s good to know that a gasoline-powered car pays less in road tax than a diesel car. If you don’t want to pay any road tax at all, you can purchase a fully electric car. Fully electric cars are exempt from road tax through 2024.
Are you still unsure about what type of car you’d like to buy? In that case, you can calculate the road tax for the different car models in advance and choose the one that will cost you the least in road tax. You could also calculate the insurance costs for the different types of cars.
Get your car insured right away
If you already know the amount of your road tax, now is the time to calculate your insurance premium. With us, you can get an overview of the different insurance options in 3 simple steps. By entering your date of birth, you can immediately calculate which premium best suits your needs. In less than 5 minutes, you can finalize your insurance and hit the road fully insured. You could save up to €200.
Do you have any questions? Pleasecontact us. We’re happy to help! You can reach us Monday through Friday from 8:30 a.m. to 5:30 p.m. at 088-6883700.
What are my vehicle's CO2 emissions?
Your vehicle's CO2 emissions are listed on its type approval certificate. This document also includes other relevant information about your vehicle, such as its weight class and engine displacement.
What are the rates for 2023?
Road tax rates are subject to change. This is due to the annual inflation adjustment implemented by the government. Because provinces in the Netherlands have the freedom to set their own surcharge rates, the amount of road tax also varies by province. The provinces of Flevoland, Gelderland, Groningen, North Brabant, and Utrecht will see an increase in the surcharge rate in 2023. As was the case last year, owners of fully electric cars will be exempt from paying road tax in 2023, and this exemption will continue through 2024. Road tax rates will be adjusted again in 2023.
Road Tax Surcharge Rates for 2023
| Province | 2023 (%) | 2022 (%) |
|---|---|---|
| Groningen | 95,7 | 94,5 |
| South Holland | 95,7 | 91,8 |
| Gelderland | 93,0 | 90,6 |
| Drenthe | 92,0 | 92,0 |
| Friesland | 87,0 | 87,0 |
| Zeeland | 82,3 | 82,3 |
| Flevoland | 82,2 | 82,2 |
| North Brabant | 80,8 | 79,6 |
| Limburg | 80,6 | 79,1 |
| Overijssel | 79,9 | 79,9 |
| Utrecht | 79,4 | 77,5 |
| North Holland | 67,9 | 67,9 |
Source:CBS
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