Road tax when you sell your car: transfers, refunds, deregistration
2 July 2026 · 4 min read · PaperValue.sg
Short version, because this is the single most-misunderstood refund in car selling:
Road tax is only refunded when a car is deregistered — scrapped or exported. When you sell or trade in, there is no refund. The remaining road tax transfers with the car to the new owner, automatically.
That one rule decides everything else in this guide. Here's what it means in practice, whichever exit you're taking.
Selling or trading in: no refund, so price it in
When ownership transfers, the unused road tax goes with the car. LTA doesn't cut you a cheque, and the dealer certainly won't volunteer one.
That makes remaining road tax a negotiation line, not a refund. A car with 11 months of prepaid road tax is genuinely worth more to the buyer than the same car with 2 weeks left — for a 2.0L sedan, that difference can be a few hundred dollars. Mention it explicitly when you negotiate, because no one on the other side of the table will.
The flip side: don't renew road tax right before selling. If your road tax expires next month and you're listing the car now, let the buyer handle the renewal after transfer. Renewing a year of road tax and then selling two weeks later is a donation to a stranger.
One caveat — the car must have valid road tax at the point of transfer to stay driveable, and renewal requires valid insurance and (for older cars) a passed inspection. If your tax lapses mid-sale, an unviewable, undriveable car costs you more in negotiation than the renewal did.
Deregistering: automatic prorated refund
If you're scrapping or exporting the car, LTA refunds the unused road tax automatically — no application needed. The refund is prorated to the day and lands in the bank account linked to your LTA profile within 2 to 4 weeks.
This stacks on top of your PARF and COE rebates, which are the far bigger numbers — check them on your OneMotoring vehicle details before you decide scrapping is the right exit at all. For cars near a PARF cliff or with substantial COE remaining, the difference between selling and scrapping can be thousands.
The decision table
| Your exit | Road tax outcome | What to do |
|---|---|---|
| Sell to dealer / trade in | Transfers with car | Quote the remaining months in negotiation |
| Sell to private buyer | Transfers with car | Same — and put the amount in the sales agreement |
| Scrap or export | Prorated refund, automatic | Check your LTA-linked bank account in 2–4 weeks |
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Frequently Asked Questions
Do I get a road tax refund when I sell my car?
No. Road tax refunds only happen on deregistration (scrap or export). When you sell to a dealer or private buyer, the remaining road tax transfers to the new owner with the car — so account for it in your negotiated price instead.
When is road tax refunded after deregistration?
Automatically, within 2 to 4 weeks of deregistration, prorated to the day and paid to the bank account linked to your LTA profile. No application is required.
Should I renew my road tax before selling the car?
Only if it's about to lapse and you still need to drive (or show) the car — an untaxed car can't be driven to viewings or the dealer. Otherwise, don't gift the buyer a year of road tax: renew the minimum you need, and let the new owner renew after transfer.
Does remaining road tax make my car worth more?
Yes, modestly. Prepaid road tax is real money the buyer won't have to spend — several hundred dollars on larger-engine cars. It's a legitimate line item in negotiation; raise it, because the buyer won't.
Can road tax be transferred to my next car?
No. Road tax belongs to the vehicle, not the owner — it can't be moved between cars. On deregistration it's refunded; on sale it transfers with the car.
Related Guides
- What happens after you sell your car: the full post-sale checklist
- Insurance refund after selling your car: the refund people actually forget
- COE renewal or sell: the math at the 10-year mark
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