All vehicle taxes in the Netherlands at a glance (2026)

Summary: Anyone who buys, owns and uses a car in the Netherlands pays tax via at least eight different channels: BPM, motor vehicle tax with provincial surcharges, fuel excise duty, VAT, benefit-in-kind taxation, insurance premium tax, parking tax and, from 2026, the heavy goods vehicle levy. Together these account for roughly 17 to 21 billion euros per year in government revenue. This places the Netherlands, alongside Denmark, among the most heavily taxed car countries in Europe — globally, only Singapore takes the crown. In this article we list every vehicle tax, with links to the official sources and the most important case law.

How much tax does the Dutch motorist actually pay?

The figures speak for themselves. In 2023 the treasury collected nearly 20 billion euros in vehicle taxes; the estimate for 2024 was around 21 billion. Industry association BOVAG projects approximately 17 billion for 2025, divided over roughly 2 billion in BPM (purchase), 5 billion in motor vehicle tax (ownership), 8 billion in excise duty (usage) and 2 billion in benefit-in-kind. Whichever definition you use: the car has been one of the most reliable revenue sources for the Dutch government for decades. And that is no coincidence, but policy. Ever since the introduction of BPM in 1993 — and before that the special consumption tax — the rule has been: the motorist pays, regardless of the political weather.

International research by the German think tank DIW placed the Netherlands second in Europe for total tax burden on purchasing, owning and using a car, directly behind Denmark, at 3,000 to 4,000 euros per car owner per year. Denmark's 180% registration tax is the highest in Europe and is globally surpassed only by Singapore, where the certificate of entitlement (COE) system makes an ordinary car unaffordable. The Netherlands therefore plays in the top league of car-taxing countries — and in certain areas we are even the outright leader: Dutch tax on petrol at approximately €1.26 per litre is the highest in the entire European Union. More than half of every litre at the pump is tax.

Which vehicle taxes exist in the Netherlands?

1. BPM: the purchase tax

The tax on passenger cars and motorcycles (BPM) is a one-off payment at the first registration of a car in the Dutch vehicle register — both for new cars and for imported used cars. For petrol and diesel cars the amount is determined by CO2 emissions, with an additional diesel surcharge. Since 1 January 2025 the BPM exemption for electric vehicles has also been abolished. For the period 2026 to 2028, the CO2 bracket thresholds are being lowered and the rates increased, so that revenue remains stable as cars become more efficient. Read the changes at rijksoverheid.nl and the rates at belastingdienst.nl.

Particularly with the import of used cars, BPM is a legal minefield — and a field where we litigate and advise daily. Article 110 TFEU prohibits charging more BPM on an imported used car than the residual BPM that still rests on a comparable car already on the road in the Netherlands. The Court of Justice of the EU confirmed this ceiling in the X judgment (CJEU 19 December 2013, C-437/12, ECLI:EU:C:2013:857). The Dutch Supreme Court tightened this in its ruling of 24 March 2023 (ECLI:NL:HR:2023:440): the inspector must, when issuing an additional assessment, ensure on their own initiative that they remain within the limits of Article 110 TFEU — that responsibility may not be shifted to the taxpayer. And in 2021 the Supreme Court ruled on cars with essential defects (WOK status) that the BPM levy must also in those cases withstand the comparison with domestic vehicles (HR 26 March 2021, ECLI:NL:HR:2021:415). All rulings are available at rechtspraak.nl. Calculate an estimate with our BPM calculator.

2. Motor vehicle tax (mrb) plus provincial surcharges

Motor vehicle tax — colloquially road tax — is paid periodically for as long as a vehicle is registered in your name, calculated by weight, fuel type and province. On top of the base amount, the twelve provinces levy their own surcharge: the provincial surcharges, together accounting for nearly 1.9 billion euros per year. Between provinces the rate can differ by tens of percentage points. Electric vehicles have been paying since 2025; the discount is 30% for 2026 to 2028, drops to 25% in 2029 and expires completely in 2030. The three-quarter rate for plug-in hybrids has already been abolished as of 2026. The classic car exemption is also being scaled back: from 2028 it will apply only to vehicles manufactured before 1988 — for classic car enthusiasts a directly noticeable increase in costs. All details are at rijksoverheid.nl/motorrijtuigenbelasting.

Motor vehicle tax also has strict enforcement case law. If you live in the Netherlands and drive a car with a foreign registration, the tax authority can retroactively assess the full period from your BRP registration — up to five years back — with a 100% default penalty. The Supreme Court upheld this regime on 5 April 2019 (ECLI:NL:HR:2019:482 and ECLI:NL:HR:2019:483).

3. Fuel excise duty: the biggest revenue stream

Excise duty is the quiet giant among vehicle taxes: petrol, diesel and LPG alone generate nearly 8 billion euros annually — more than BPM and motor vehicle tax individually. In 2026 the excise duty is €0.79 per litre of petrol, €0.52 per litre of diesel and €0.19 per litre of LPG; the temporary excise reduction has been extended by one year until the end of 2026. And note the double taxation: you then also pay 21% VAT on top of the excise duty. Tax on tax — a construction that would prompt parliamentary questions for any other product, but has been silently accepted for the car for decades.

4. VAT on purchase, maintenance and fuel

On the purchase price of a new car, on every service, every tyre and every litre of fuel, the treasury charges 21% VAT. For a new car, VAT is added on top of the net list price, after which BPM pushes the total even higher.

5. Benefit-in-kind for private use of a company car

If you drive more than 500 private kilometres per year in a company car, the tax authority adds a percentage of the list price to your income. The standard rate is 22%; electric vehicles pay 18% in 2026 up to a list price of €30,000, rising to 22% in 2028. For youngtimers of 16 years and older, 35% applies on the current market value. Benefit-in-kind taxation generates approximately 2 billion euros per year for the treasury. See belastingdienst.nl for current percentages.

6. Insurance premium tax on your car insurance

On the premium of your car insurance you pay 21% insurance premium tax. A line item that virtually no one has on their radar, but which generates more for the government annually than all BPM revenue: over 1.2 billion euros (across all insurance types).

7. Parking tax and municipal levies

Municipalities levy parking tax under the Municipal Act — in major cities now well above €7.50 per hour — plus fees for permits. Traffic fines also flow into the treasury at over 800 million euros per year.

8. Heavy goods vehicle levy (from 2026)

For freight traffic, the kilometre-based heavy goods vehicle levy is being introduced in 2026; lorries over twelve tonnes will then pay only the European minimum in motor vehicle tax. It is the first concrete step towards "pay per use" — a systemic change that may eventually also affect passenger cars.

Why does the car remain the cash cow?

The answer is soberly simple: the car is an indispensable possession whose usage barely declines when tax rises. Economists call that an inelastic tax base; finance ministers call it a safe bet. Illustrative is the current debate: now that electric vehicles are eroding BPM and excise revenues, the cabinet openly speaks of "base erosion" amounting to billions and is urgently searching for new tax bases — not for tax relief. The question in The Hague is never whether the motorist pays, only how.

Frequently asked questions

Which vehicle taxes do I pay in the Netherlands? BPM on purchase or import, motor vehicle tax plus provincial surcharges on ownership, excise duty and VAT on usage, benefit-in-kind for business driving, insurance premium tax on your insurance, and parking tax at the municipality.

Is the Netherlands the most expensive car country in the world? Globally Singapore is the most expensive, in Europe Denmark; the Netherlands follows in the European top tier and in certain areas — such as petrol excise duty — is even the outright leader.

Can I reclaim overpaid BPM on import? Yes. Under Article 110 TFEU, the BPM on an imported used car may never be higher than the residual BPM on a comparable Dutch car. A proper appraisal report or trade guide substantiation often makes a substantial difference.

Overpaid BPM or received an additional assessment?

At PC Sports & Classics the tax expertise is in-house. Founder Paul Coenen, LL.M. is a tax lawyer who has specialised in vehicle taxation for many years; major accountancy firms have been engaging us for years as advisers on BPM and import cases for their clients. Get in touch if you want to import a car, have received an additional assessment, or want to know whether you have overpaid BPM.

Official sources

Rijksoverheid — vehicle taxes: rijksoverheid.nl. Belastingdienst — vehicles (BPM, motor vehicle tax, benefit-in-kind): belastingdienst.nl. Tax Plan 2026, excise, BPM and motor vehicle tax measures: rijksoverheid.nl/belastingplan. Case law: CJEU 19 December 2013, C-437/12 (ECLI:EU:C:2013:857); HR 24 March 2023 (ECLI:NL:HR:2023:440); HR 26 March 2021 (ECLI:NL:HR:2021:415); HR 5 April 2019 (ECLI:NL:HR:2019:482 and 483), all via rechtspraak.nl.

This article is intended as general information and does not constitute tax advice for individual cases. Rates and regulations change annually; no rights can be derived from this article. Last updated: July 2026.

Every vehicle tax in the Netherlands at a glance (2026): why the car has been the government's cash cow for decades