- Rates increase by 200 cm3 bands, e.g., 18, 72, 144, 290 lei.
- Local councils can cut or exempt tax via resolutions, creating locality differences.
- Hybrids may get up to 50% reduction; electric cars may be fully exempt.
Car owners in Romania may notice significant differences in the auto tax they pay, depending on the locality where their vehicle is registered. Although there is a unified legal framework under the Tax Code, local authorities have room to apply reductions and exemptions through local council decisions.
This article explains how the auto tax is calculated based on engine displacement and how local governments influence the final amounts.
How the Auto Tax Calculation System Works
The auto tax is based primarily on the engine displacement of the vehicle. The calculation uses a progressive tiered system, where each 200 cm3 band is multiplied by a specific value set in the Tax Code.
For a clearer understanding, the calculation system divides engines into several categories, each with a corresponding tax based on displacement. The bigger the engine, the higher the tax grows progressively, not proportionally.
Standard Rates for Auto Tax Calculation
- Engine between 1601 cm3 and 2000 cm3: The tax is 18 lei per 200 cm3 band. This means that for an 1800 cm3 engine, for example, the tax is calculated for 9 bands of 200 cm3.
- Engine between 2001 cm3 and 2600 cm3: The amount increases to 72 lei per 200 cm3 band. This category includes many popular models such as the BMW 3 Series or Mercedes C-Class with 2.0-liter turbo engines.
- Engine between 2601 cm3 and 3000 cm3: The tax rises significantly to 144 lei per 200 cm3 band. This category includes cars such as the BMW 330i or Audi S3.
- Engine above 3001 cm3: For vehicles with large engines, the tax reaches 290 lei per 200 cm3 band. Here we refer to premium or sport cars with V6 or V8 engines.
The crucial role of local councils in setting the final tax
Although the Tax Code provides the general calculation framework, local councils have the legal authority to modify these amounts through resolutions adopted at council meetings. This local autonomy means that two owners of identical cars can pay different amounts, depending on the locality where they are registered.
- Percentage reductions from the standard tax
- Total or partial exemptions for certain vehicle categories
- Tax incentives for eco-friendly vehicles
- Bonuses for upfront payment of the tax
These decisions are made public and can be consulted on the municipalities’ websites or at the local authority offices. It is important to check the local council resolutions for your locality to learn exactly what incentives are available.
Special incentives for eco-friendly vehicles
An important aspect many owners are not aware of is that for hybrid vehicles, the Tax Code allows local councils to reduce the tax by up to 50%. This incentive is not automatic — it depends solely on the local authority’s decision.
For electric vehicles, many localities offer full exemptions from the tax for a certain period or substantial reductions. This measure is part of policies to encourage the purchase of non-polluting vehicles.
If you own or plan to buy a hybrid or electric vehicle, it’s essential to inform yourself about the local council decisions. The difference can be significant—for example, a 2.5-liter hybrid SUV with a 50% reduction could save hundreds of lei per year.
How to determine the exact amount you must pay
To determine the exact auto tax you must pay, follow these steps:
- Check the registration certificate to identify the exact engine displacement.
- Check your locality’s municipal website to view the local council’s decisions on auto tax.
- Contact the local taxes and duties service for further clarifications.
- Check if there are incentives for your vehicle type (hybrid, electric, historic/classic vehicle, etc.).
It’s important to check these annually, as local councils can modify tax incentives from year to year through new resolutions.
Conclusions and recommendations
Auto tax is not a uniform national tax; it varies according to local authorities’ decisions. This flexibility allows local councils to tailor taxation to the community and encourage certain behaviors, such as buying eco-friendly vehicles.
For vehicle owners, knowing these aspects can make the difference between paying the full amount or benefiting from significant reductions. Informed decisions and annual checks of local council resolutions are essential to ensure you pay the correct amount and take advantage of all available incentives.