Why Small-Displacement Vehicles Get a Tax Break
Several countries encourage small, efficient vehicles by capping how much displacement-based tax an owner actually pays. Under this common model, vehicles under 1000cc still accrue a base tax plus a local surtax like any other car, but an annual exemption of up to $75 is subtracted from that total. Because most small-displacement vehicles have a combined tax under that cap to begin with, many owners end up owing little or nothing at all.
This calculator only needs your engine displacement to work out the base tax, the surtax, and exactly how much the exemption saves you versus what you actually owe. It's useful whether you're comparing the running costs of a small car before buying one, or just want to confirm what your current vehicle's tax bill should look like. The exemption applies the same way to hybrid small-displacement vehicles as long as the engine size qualifies.
Frequently Asked Questions
Up to $75 off the combined base tax and surtax each year. If the total is under $75, you owe nothing.
This model uses under 1000cc as the cutoff, matching common small-car tax categories.
Yes, as long as the displacement is under the threshold, regardless of hybrid status.