PARF and EV rebates: what changes in 2027

There are two different numbers in an EV purchase: the ARF you pay when registering the car and the PARF rebate you may receive when deregistering it.

Upfront EV incentives can lower both. As incentives shrink, buyers may pay more ARF and receive a larger PARF rebate later, but the extra rebate returns only a fraction of that extra tax.

The confirmed change is from up to $30,000 in combined incentives in 2026 to up to $20,000 in 2027. EEAI ends; VES continues. LTA’s 2026–2027 announcement.

What is confirmed?

Item	2026	2027
EEAI	45% of ARF, capped at $7,500	Ends from 1 January
VES Band A rebate for cars	$22,500	$20,000
Maximum combined reduction	$30,000	$20,000
Minimum ARF for qualifying fully electric cars	$0	$0

The maximum is not a cash grant and not every EV receives it. The car must qualify, and rebates cannot reduce ARF below its applicable floor. Check the VES band and actual tax breakdown in the quotation.

The 2026 PARF schedule has no announced expiry. That makes it the current rule, not a promise that policy can never change. For affected cars, the final eligible age band pays 5% of net ARF, subject to the $30,000 cap. The earlier cohort’s rate is 50%. LTA’s PARF revision.

One EV, two registration years

Assume a Band A EV has $40,000 gross ARF and qualifies for the maximum rebates. Both cases use the revised PARF schedule and deregistration at above nine but not more than ten years old.

Calculation	Registered in 2026	Registered in 2027
Gross ARF	$40,000	$40,000
VES rebate	−$22,500	−$20,000
EEAI	−$7,500	$0
Net ARF paid	$10,000	$20,000
PARF at 5% of net ARF	$500	$1,000
ARF less eventual PARF	$9,500	$19,000

In this illustration, the 2027 buyer pays $10,000 more upfront and gets $500 more back at deregistration. The net difference is $9,500, before financing or the time value of money.

This isolates the tax change. It does not forecast dealer prices, COE premiums or resale values. If the dealer has already included incentives in the quoted price, do not deduct them again.

Lower-ARF cars do not always lose the full $10,000

At an illustrative $27,000 OMV, gross ARF is $29,800: $20,000 plus 140% of the next $7,000. The marginal ARF bands are published in LTA’s ARF schedule.

For a qualifying Band A EV:

• In 2026, VES and EEAI can reduce that ARF to $0. Only $7,300 of EEAI is needed after the $22,500 VES rebate.
• In 2027, the $20,000 VES rebate leaves $9,800 payable.
• Under the revised final-age-band PARF rate, the eventual rebate would be $0 versus $490.

Actual OMV varies by car and import batch. These are worked examples, not tax figures for a named model. LTA’s own model illustrations also show why the full advertised incentive is not available to every vehicle.

What about 2028?

The cited VES schedule runs through 31 December 2027. It does not establish what rebates or replacement measures will apply in 2028.

For planning, compare scenarios with lower or no incentives. Label them as scenarios rather than assuming every future EV buyer will pay full ARF. The original version of this article treated that outcome too confidently.

What this means for your existing car

New registration incentives do not reset an existing vehicle’s ARF or PARF schedule when it is sold used. Its entitlements stay with the car.

A lower replacement price or a higher future rebate can affect what buyers are willing to pay, but neither guarantees a resale premium. At COE expiry, the unused COE rebate is zero; do not count it as a residual payout.

For the applicable cohort, cap and age bands, see our PARF guide.

Frequently Asked Questions

Do both EEAI and VES end in January 2027?

No. EEAI ends from 1 January 2027. VES continues through 2027, with a $20,000 Band A car rebate.

Is buying in 2026 automatically cheaper?

The maximum incentives are higher, but compare the actual all-in prices, COE terms and financing. A change in dealer pricing can offset a tax difference.

Does the PARF cut affect every car registered during February 2026?

For cars requiring a COE, the cutoff is the second February 2026 bidding exercise. Registration date alone is insufficient near the boundary.

Should I buy before the incentive changes?

Only if the full purchase and ownership budget works for you. Start with your replacement quotation and your current car’s value.