Everything you need to know about vehicle tax

In Sweden, owners of cars and other vehicles have paid vehicle tax since 1922. The tax is paid to the state, and the purpose of the law was that road users would pay for road maintenance of worn roads. The authority that handles matters regarding vehicle tax is the Swedish Transport Agency.

What is vehicle tax?

Vehicle tax is a fee that applies to all vehicles that are not decommissioned or only temporarily registered. Apart from these and other exceptions, the tax is mandatory, and completely independent of how much it is used. So it doesn't matter if you commute 150 kilometers per day to work or if you have a motorcycle that is driven a few times during the summer. As long as a vehicle is registered, you must pay vehicle tax for it.

For vehicle tax up to SEK 3,600, you pay once a year. For higher tax amounts, the tax is divided into three payments per year. These types of vehicles are taxable:

• Passenger cars

• Trucks

• Buses

• Motorcycles

• Tractors

• Motor tools

• Heavier trailers

• Heavy duty off-road vehicles

Exemptions from tax liability

Not all motor vehicles and equipment are subject to tax. Exemptions from tax liability apply to, among other things:

• So-called veteran vehicles, i.e. cars, trucks, buses and motorcycles that are 30 years old or older and are not used in commercial traffic

• Tractors in tax class II (agricultural tractors)

• Heavy off-road vehicles not used on public roads

• Power tools class II

• Emergency vehicles, upon request

• Semi-trailers over 3,000 kg (in some cases)

• Light trailers of no more than 750 kg

• Mopeds, ATVs, snowmobiles and quad bikes

• Decommissioned and temporarily registered vehicles are not taxable.

Bonus/malus

In June 2018, the government introduced the so-called bonus malus system, which provides a bonus for cars with low carbon dioxide emissions and a penalty (malus) on vehicles with high emissions. In 2021, the limits for when the malus tax must be paid were lowered. From 1 June 2022, further reduced limits apply.

The penalty covers petrol and diesel-powered cars, light buses and trucks that have a vehicle year of 2018 or later, and that emit certain amounts of carbon dioxide.

When is vehicle tax paid?

Vehicle tax is paid according to a certain schedule, and it is the last digit in the registration number that determines which month the tax is to be paid. For example, if your last digit is 1 and your tax is SEK 3,600 or less, your vehicle tax is to be paid in April.

Below you will see a complete list of when the tax must be paid, depending on the final number in your vehicle.

Section 3 The vehicle tax for a tax year or tax period shall be paid during the month before the start of the tax year or tax period (the payment month). Road Traffic Tax Act.

What determines how much you pay in vehicle tax?

The amount of the vehicle tax is calculated either based on how much the vehicle (passenger cars, motorhomes, light trucks and light buses) weighs or depending on how much CO2 (carbon dioxide) the vehicle emits during mixed driving.

Those who are taxed based on carbon dioxide emissions are:

• Class I passenger car that is of:

  • vehicle year 2006 or later

  • vehicle year earlier than 2006 but which meets the requirements for environmental class 5, environmental class electric or environmental class hybrid

• Motorhome, light truck or light bus, entered into service on or after January 1, 2011

The vehicles that are taxed by weight are other passenger cars in class I, motorhomes, light trucks and buses. That is, those that do not fall under the vehicles that are calculated according to CO2 emissions.

Calculate vehicle tax

Calculating vehicle tax requires that you know a little about the different surcharges. Vehicle tax consists of several parts, a basic amount, a carbon dioxide amount, an environmental surcharge and a fuel surcharge. The basic amount is SEK 360/year and is paid for all vehicles covered by the malus rule (see above) . The malus is levied for three years from the time a vehicle first becomes taxable.

The carbon dioxide amount from June 1, 2022 is SEK 107 per gram for vehicles emitting between 75-125 grams per kilometer, and SEK 132 for those emitting more than 125 grams (an increase from SEK 82 and SEK 107 respectively from 2018).

The environmental surcharge is paid for diesel-powered vehicles and is SEK 250 per year.

Finally, the fuel surcharge also applies to diesel-powered vehicles. Here, the surcharge is calculated based on how many grams the vehicle emits per kilometer multiplied by 13.52.

Who pays vehicle tax when changing ownership?

Who must pay the vehicle tax when ownership changes depends on when the change of ownership occurs. If the change of ownership occurs in the same month as the tax is due, the tax must be paid by the person transferring or selling the vehicle. If the tax is to be paid later, the new owner is liable for the tax.

Statement in connection with change of ownership

If the vehicle is registered in connection with a change of ownership, it is usually the new owner who becomes liable for tax. This applies if the change of ownership and registration take place at the same time, either via the registration certificate or the Swedish Transport Agency's app or e-service.

However, if you report the claim and then submit the registration certificate, you as the seller will be liable for tax. However, if the report of the change of ownership shows that the claim took place on the same day as the change of ownership, you can request a review of the tax decision from the Swedish Tax Agency.

Vehicle tax refund

If a vehicle is decommissioned in connection with a change of ownership, the excess tax amount is refunded. Who receives the payment depends on when the change of ownership occurs - if the decommissioning occurs before the change of ownership, you as the seller will receive the money back, otherwise the vehicle tax refund goes to the new owner.

Vehicle tax is also refunded when the vehicle is deregistered – for example when scrapped or sold abroad. Other occasions when vehicle tax is refunded are:

• when the tax liability ceases or lower tax is levied

• the vehicle's design is changed in a way that results in a lower tax amount

• vehicle tax changes due to new regulations

Refunds are made if there is excess tax to be refunded. Payment is usually made to the person who was the registered owner at the time of the changed circumstances. However, if the amount is less than 50 SEK, no refund will be made.