Commercial Vehicle Road Tax in Singapore
The Land Transport Authority (LTA) calculates commercial vehicle road tax based on the vehicle’s maximum laden weight (MLW) and engine type, with rates differing significantly from passenger car road tax. As of 2026, commercial vehicle road tax rates are structured to reflect the heavier weight and higher road wear caused by commercial vehicles, while offering lower baseline rates than cars for lighter vehicles.
How Commercial Vehicle Road Tax is Calculated
The Land Transport Authority (LTA) calculates commercial vehicle road tax using the following formula:
- Light commercial vehicles (up to 3,000 kg MLW): A base rate per 0.5 tonne or part thereof, with a minimum tax floor
- Heavy commercial vehicles (above 3,000 kg MLW): Progressive rates that increase with vehicle weight
- Diesel commercial vehicles: Additional diesel tax component applies (S$0.10 per cc for the first 3,000 cc, higher thereafter)
The road tax for commercial vehicles is generally lower than for cars in the lower weight bands, but increases more steeply for heavier vehicles to account for road wear.
Indicative Road Tax by Vehicle Type
The table below provides indicative annual road tax amounts for common commercial vehicle types in Singapore.
| Vehicle Type | Weight / Engine | Annual Road Tax (Indicative) | Diesel Surcharge |
|---|---|---|---|
| Small Van (petrol) | < 1,500 kg MLW | S$200–S$350 | N/A |
| Small Van (diesel) | < 1,500 kg MLW | S$250–S$450 | Included |
| Medium Van (diesel) | 1,500–2,500 kg MLW | S$350–S$550 | Included |
| Light Lorry (diesel) | 2,500–3,500 kg MLW | S$500–S$900 | Included |
| Medium Lorry (diesel) | 3,500–7,000 kg MLW | S$1,000–S$1,800 | Included |
| Heavy Lorry / Prime Mover (diesel) | 7,000–16,000 kg MLW | S$2,000–S$3,500 | Included |
| Mini-Bus (diesel) | 3,000–5,000 kg MLW | S$700–S$1,200 | Included |
Figures are indicative estimates based on LTA's published rate structure as of 2026. Actual road tax depends on the specific vehicle's MLW and engine type. Check the LTA website for precise calculations.
Commercial Vehicle vs Car Road Tax
Key differences between commercial vehicle and car road tax in Singapore:
- Calculation basis — Commercial vehicle tax is based on maximum laden weight (MLW), while car tax is based on engine capacity (cc)
- Baseline rates — Commercial vehicles have lower baseline rates than cars for equivalent weight/capacity
- Diesel surcharge — Most commercial vehicles run on diesel and incur an additional diesel tax component
- Annual vs 6-month — Commercial vehicle road tax is typically paid annually, while car road tax can be paid in 6-month instalments
- Early payment discount — No early payment discount for commercial vehicles (unlike car road tax)
Payment Schedule and Methods
Commercial vehicle road tax must be paid before the existing road tax expires. The renewal notice is sent by LTA approximately one month before expiry. Payment can be made through:
- AXS stations and AXS e-Station
- DBS/POSB ATMs and iBanking
- OCBC Internet Banking
- PayNow (to LTA’s UEN)
- Nets at LTA Customer Service Centres
You can also authorise LTA to auto-debit road tax renewals through GIRO, ensuring you never miss a payment.
Penalties for Late Payment
Late payment of road tax results in the following penalties:
- Late payment fee — A flat fee of S$10 applies to late renewals
- Backdating — Road tax is backdated to the date of expiry, so no “gap” in payment is possible
- Offence — Driving without valid road tax is an offence carrying a fine of up to S$2,000
- Vehicle cannot be used — You must not drive the vehicle on public roads until road tax is paid
If your road tax has been expired for more than 30 days, the vehicle registration may be revoked, requiring a fresh registration process.
Road Tax and Your Financing Decision
When budgeting for a commercial vehicle, include road tax in your total cost of ownership calculation. A heavy lorry’s annual road tax can reach S$3,500 or more, which should be factored into your cash flow planning. This is especially important for businesses financing multiple vehicles under fleet financing arrangements.
Frequently Asked Questions
For light commercial vehicles such as vans, road tax is generally lower than car road tax. However, for heavy commercial vehicles above 7,000 kg MLW, road tax increases progressively and can exceed typical car road tax amounts.
Commercial vehicle road tax is typically paid annually in one lump sum, unlike car road tax which offers a 6-month payment option. Setting up GIRO can help manage the cash flow impact of annual payments.
Any unused portion of road tax is refunded to you by LTA on a pro-rated basis when the vehicle is transferred or deregistered. The refund is processed automatically as part of the transfer or deregistration process.
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