In Russia, since 2014, there has been a so-called luxury tax — additional fee for owners of expensive cars. Although the term “luxury” sounds subjective, the law clearly defines which cars fall under this tax and which do not. Many car owners still confuse it with transport tax or do not know what exactly affects the final amount to be paid.
In this article we will look at Who exactly should pay the luxury tax on the car?, how it is calculated, which models are subject to increased coefficients, and what to do if you receive a notification from the Federal Tax Service with the wrong amount. You will also learn how the law interprets the concept of “expensive car” and why even a budget foreign car can suddenly find itself on the list of taxable cars.
What is luxury tax and why was it introduced?
The luxury tax is increasing coefficient for transport tax, which applies to cars costing from 3 million rubles and above. It was introduced in 2014 as a measure of social justice: the state decided that owners of premium cars should pay more for using roads and infrastructure.
It is important to understand that this is not a separate tax, but coefficient, which is multiplied by the standard vehicle tax rate in your region. For example, if the base rate for your car is 150 rubles per hp, and the luxury coefficient is 2, then you will pay 300 rubles for each horsepower.
The main reasons for introducing the tax:
- 💰 Budget replenishment — additional income from owners of expensive cars.
- 🚗 Market regulation — decreased demand for premium foreign cars.
- ⚖️ Social justice — redistribution of the tax burden.
Since 2021, the rules have changed slightly: now not only the price of the car is taken into account, but also its age. For example, used Toyota Land Cruiser 200 A 2015 model may cost less than 3 million rubles, but if its original price was above this threshold, the tax will still apply.
Who pays the luxury tax: criteria and categories of cars
Not all expensive cars are subject to the luxury tax. The law identifies several key criteria:
- Cost from 3 million rubles - main threshold. This takes into account average market price at the time of model release, not the actual purchase price.
- Car age up to 3 years — for new cars the coefficient is higher than for used ones.
- Engine power — the more horsepower, the higher the rate.
For example, Mercedes-Benz S-Class A 2023 model is almost guaranteed to be subject to tax, even if you bought it with mileage for 2.8 million rubles. But BMW 5 Series 2018, most likely, will no longer be subject to an increased coefficient if its market value has fallen below 3 million.
There are also exceptions:
- 🚜 Trucks and special equipment are not subject to tax.
- 🚑 Ambulances, firefighters and police cars - released.
- 🚗 Cars with power up to 150 hp - even if they cost more than 3 million (for example, some electric cars).
How is luxury tax calculated: formula and examples
The formula for calculating luxury tax looks like this:
Tax = (Engine power, hp) × (Basic rate in the region) × (Increasing coefficient)
The base rate is set law of the subject of the Russian Federation and may vary by region. For example, in Moscow and St. Petersburg the rates are higher than in most regions. The increasing factor depends on cost and age car:
| Cost of the car, million rubles. | Age up to 3 years | Age 3-5 years | Age 5-10 years | Age over 10 years |
|---|---|---|---|---|
| 3–5 million | 1.1 | 1.0 | — | — |
| 5–10 million | 2.0 | 1.5 | 1.3 | — |
| 10–15 million | 3.0 | 2.0 | 1.5 | 1.1 |
| Over 15 million | 3.0 | 2.5 | 2.0 | 1.5 |
Calculation example for Porsche Cayenne 2022 (cost 8 million rubles, power 340 hp) in Moscow:
- Base rate in Moscow for 340 hp. — 300 rub./hp
- Increasing factor - 2.0 (cost 5–10 million, age up to 3 years).
- Final tax:
340 × 300 × 2 = 204,000 rub./year.
If you bought the car at the end of the year, the tax will be calculated in proportion to the number of months of ownership. For example, if you purchase in October, you will be charged tax only for 3 months (October–December).
Which cars are subject to the luxury tax in 2026?
The list of cars subject to the luxury tax is updated annually Ministry of Industry and Trade of the Russian Federation. In 2026 it included:
- 🚙 Mercedes-Benz S-Class, G-Class, AMG-series - almost all modifications.
- 🚙 BMW 7 Series, X5, X6, X7, M-series - except for basic versions.
- 🚙 Porsche 911, Cayenne, Panamera, Macan (top trim levels).
- 🚙 Audi A8, Q7, Q8, RS-series.
- 🚙 Lexus LX, LC, LS - even used models up to 5 years old.
- 🚙 Land Rover Range Rover, Defender (high specifications).
- 🚗 Tesla Model S, Model X - despite the electric power plant.
Also on the list are some Chinese premium brands, such as Hongqi and Zeekr, if their cost exceeds 3 million rubles. But Toyota Camry or Volkswagen Tiguan, even in top trim levels, are usually not subject to tax, since their market price is below the threshold.
Full list of cars for 2026
You can download the current list on the website of the Ministry of Industry and Trade of Russia at the link [list.minpromtorg.rf/tax-on-luxury](https://list.minpromtorg.rf/tax-on-luxury). Please note that the list is updated once a year, usually in March.
Interesting fact: even if you bought a car abroad and imported it into Russia, luxury tax will still apply if its value exceeds 3 million rubles at the Central Bank exchange rate at the time of customs clearance.
Who is exempt from paying luxury tax?
The law provides for several categories of owners who don't pay luxury tax, even if their car meets the criteria:
- 👨👩👧👦 Large families — if the car is registered to one of the parents in a family with 3 or more children.
- 🦽 Disabled people of groups 1 and 2 - if the car is equipped for driving by a disabled person.
- 🚗 Owners of cars over 10 years old - if their value has fallen below 3 million (but this must be documented).
- 🏆 Sports organizations - if the car is used for sporting events.
Also, the following do not pay tax:
- 🚛 Legal entities, if the car is listed on the company’s balance sheet (but then the company pays property tax).
- 🛂 Foreign diplomats - according to the Vienna Convention.
⚠️ Attention! If you fall under the benefit, but have not submitted documents to the Federal Tax Service, the tax will be charged in full. To cancel it, you need to provide supporting documents (for example, a certificate of a large family or a certificate of disability) before February 1 of the next year.
What to do if you receive a luxury tax notice
If you received a letter from the Federal Tax Service demanding to pay luxury tax, first check:
☑️Check luxury tax notice
Common errors in notifications:
- 🔢 Incorrect engine power — sometimes the Federal Tax Service takes data from old databases.
- 💰 Outdated price - if the car has fallen in price, but the old price remains in the database.
- 📅 Error in release date - for example, a 2020 car is listed as 2022.
If you find an error, you need to:
- Write complaint to the Federal Tax Service through the taxpayer’s personal account or on paper.
- Attach documents, confirming that you are right (PTS, purchase and sale agreement, expert opinion on cost).
- Wait recalculation — it usually takes 1–2 months.
⚠️ Attention! If you do not agree with the tax, but have not disputed it within 3 years, the Federal Tax Service has the right to collect the debt through the court. In this case, penalties will be charged for each day of delay.
Even if you sold the car but did not deregister it, the tax will continue to be assessed in your name. Always draw up a sales contract and deregister the car with the traffic police!
How to reduce or avoid luxury tax
There are several legal ways reduce the tax burden:
- 📉 Wait 3 years — after this, the coefficient decreases or is canceled completely.
- 🔧 Reduce engine power - for example, reflash the ECU (but this must be reflected in the vehicle title).
- 🏠 Re-register a car in a region with low rates - for example, to Crimea or Krasnodar region.
- 👨👩👧 Register a car for a beneficiary - for example, for a disabled spouse or a parent from a large family.
Illegal schemes (for example, registering as a front person or understating power in documents) can lead to fines up to 300% of the tax amount and even criminal liability for evasion of payment.
If you are planning to purchase a premium car, calculate the tax burden in advance. For example, Land Cruiser 200 will cost not only 5–7 million rubles upon purchase, but also 100–150 thousand tax rubles annually in the first 3 years.
Frequently asked questions about luxury tax
My car costs 2.9 million rubles, but the notice indicates a luxury tax. Why?
The Federal Tax Service uses average market value model at the time of release and not the actual purchase price. For example, BMW X5 in the basic configuration it can cost 2.9 million, but in the list of the Ministry of Industry and Trade it is listed as a car from 3 million. In this case, you will have to pay tax.
To challenge, you must provide expert opinion on real cost your specific car (taking into account mileage, equipment and condition).
I bought a car on credit. Do I need to pay luxury tax?
Yes, tax is charged to the car owner, regardless of whether it was purchased on credit, lease or cash. The bank or leasing company does not pay the tax for you.
An exception is if the car is registered to a legal entity (for example, a lessor), then the tax is paid by the organization.
Is it possible not to pay tax if the car is not used?
No, tax is charged for the very fact of ownership car, even if it is in a garage or in storage. The only way to avoid tax is to sell the car or deregister it.
If the car is stolen, it must be provided to the Federal Tax Service police certificate to initiate a criminal case. In this case, the tax will not be charged until the car is returned.
How do I know if my car is subject to luxury tax?
Check two things:
- Is your model in list of the Ministry of Industry and Trade.
- Does it exceed average market value your configuration is 3 million rubles (you can check with the dealer or an expert organization).
You can also use luxury tax calculator on the Federal Tax Service website or the State Services portal.
What happens if you don't pay luxury tax?
The Federal Tax Service will first send demand for payment, then - collection order. If you ignore it too, the case will be handed over to the bailiffs.
Consequences:
- 💸 Fine 20% of the debt amount (for non-payment).
- 📉 Peni 1/300 of the Central Bank refinancing rate for each day of delay.
- 🚔 Seizure of accounts or property (if the debt exceeds 30 thousand rubles).
- 🚫 Ban on traveling abroad (with debt over 30 thousand rubles).