Car Taxes in Türkiye

Türkiye is considered one of the countries that imposes relatively high taxes on cars, both at the time of purchase and annually.

 These taxes aim to regulate the car market, encourage certain types of vehicles (such as electric ones), and contribute to the state's general budget. Understanding these taxes is crucial for anyone intending to buy or own a car in Türkiye.

Types of Taxes and Fees on Cars in Türkiye

There are three main types of taxes and fees that cars are subject to in Türkiye, and these are divided into taxes paid once upon purchase and taxes paid annually:

Special Consumption Tax (Özel Tüketim Vergisi - ÖTV)

• Type: A tax paid only once when purchasing a new car (whether imported or locally manufactured).

• What is it? It's a tax added to the car's base price (manufacturer's or importer's price) before the Value Added Tax is applied. This tax is considered the primary reason for the high car prices in Türkiye.

• How its value is estimated (Influencing Factors):

• Engine Cylinder Volume (CM³): This is the most significant and influential factor on the ÖTV rate. The larger the engine size (CC), the significantly higher the percentage of the tax.

• Base Value of the Car (Before Taxes): The ÖTV bracket is also determined based on the car's sales value (excluding taxes) in addition to the engine size.

• Car Fuel Type: Electric and hybrid cars (especially plug-in hybrids) enjoy significantly lower ÖTV rates compared to gasoline and diesel cars, aiming to encourage the transition to environmentally friendly vehicles.

• Recent Legal Amendments: This tax has seen significant changes recently (effective July 2025). For example:

• For gasoline/diesel/LPG cars: The rate now ranges between 70% and 220% of the car's base value. This means you might pay more than double the car's base price as ÖTV alone.

• For electric cars: Rates have also increased recently but remain much lower, ranging between 25% and 75% depending on engine power and value.

• Hybrid cars: Have their own specific rates, lower than gasoline/diesel and higher than fully electric.

• Simple Illustrative Example: If a car's base price is 500,000 Turkish Lira, and its ÖTV rate is 100%, it means you will pay 500,000 Turkish Lira as ÖTV alone, bringing the price to 1 million Lira before KDV.

Value Added Tax (Katma Değer Vergisi - KDV)

• Type: A tax paid only once when purchasing a new car.

• What is it? It's a tax imposed as a percentage of the car's total price after the ÖTV has been added.

• How its value is estimated:

• The general KDV rate for cars in Türkiye is 20%.

• This percentage is calculated from the total sum of (Car's Base Price + ÖTV).

• Simple Illustrative Example: If the car's price became 1 million Turkish Lira after adding ÖTV, the KDV would be 20% of this amount, which is 200,000 Turkish Lira. This brings the total price paid by the consumer to 1.2 million Turkish Lira.

Motor Vehicle Tax (MTV)

• Type: An annual tax.

• What is it? It's an ongoing tax imposed on all registered vehicles in Türkiye, paid in two installments during the year (usually in January and July).

• How its value is estimated (Influencing Factors):

• Engine Cylinder Volume (CM³): This is the main factor. The larger the engine size, the significantly higher the annual tax value.

• Year of Manufacture (Vehicle Age): Cars are divided into age categories (e.g., 1-3 years, 4-6 years, 7-11 years, 12-15 years, 16 years and above). The tax is higher on newer cars and gradually decreases with the car's age.

• Declared Car Value: For cars registered after December 31, 2017, the car's sales value (declared by the Ministry of Finance) is also taken into consideration, alongside its age and engine size, to determine the annual tax bracket.

• Vehicle Type: The tax value varies between private cars, motorcycles, minivans, etc.

• Annual Update: The value of this tax is updated annually based on the revaluation rate determined by the government. For example, it is expected to increase by 43.93% for 2025.

• Simple Illustrative Example: A 2024 model car with a 1600-1800 cm³ engine will pay a much higher MTV than a 2010 car with the same engine size.

Very Important Point:

Due to frequent and rapid changes in Turkish tax laws, especially concerning the Special Consumption Tax (ÖTV), and the existence of additional customs duties on certain imports (such as Chinese cars), it is always essential to consult a reliable car dealer or a specialized tax advisor in Türkiye for the most up-to-date and accurate information regarding the car you intend to purchase.