Road tax when you sell: transfers and refunds
Published · Updated · 3 min read · PaperValue.sg
When you sell or trade in a car, its remaining road tax transfers to the buyer. LTA does not refund it to you simply because ownership changes.
Deregistration is different: any unused road-tax refund is handled as part of the vehicle’s closure. Keep this separate from your insurance refund and PARF/COE rebates.
Selling: include the remaining cover in the deal
Show the buyer the road-tax expiry date and record it in the agreement. The buyer benefits from the paid period, but there is no automatic requirement to reimburse you separately.
For example, if the unused road tax represents $300 and the agreed price is $45,000 including road tax, you receive $45,000—not another $300 from LTA. These are illustrative amounts.
Ask for a clear total price rather than assuming the buyer will add the remaining tax later. LTA’s ownership-transfer guidance confirms that remaining road tax passes with the vehicle.
Should you renew before selling?
Check the expiry against the likely transfer date. If the tax will expire while you still own the car, resolve the renewal or other permitted arrangements before it lapses.
LTA says to renew road tax if it expires before you can sell or deregister the vehicle. Renewal can require valid insurance and a completed inspection. LTA’s road-tax guidance.
If renewal is unnecessary before the agreed transfer, the buyer can handle the next renewal. If it is needed, include it in the sale discussion. Letting the tax expire to save a little money can create arrears and disrupt handover.
Deregistering: check the refund summary
When scrapping or exporting, check the road-tax refund shown in the deregistration transaction and keep the confirmation. LTA’s deregistration transaction guide shows a separate road-tax refund summary.
Confirm the payment details and processing status with LTA. This guide does not promise a universal two-to-four-week payout or assume it goes to the same account as every other refund.
If you sell the car to a dealer who later deregisters it, the subsequent refund belongs to the registered owner at that stage, subject to the transaction arrangements. It is not an extra payment to the former owner.
Keep the three transactions distinct
| Item | On a normal sale | On deregistration |
|---|---|---|
| Remaining road tax | Passes with the vehicle | Check any refund in the LTA transaction |
| PARF and COE entitlements | Pass with the vehicle | Eligible rebates can be redeemed |
| Your motor insurance | Notify the insurer | Notify the insurer |
See the insurance refund guide for policy conditions and post-sale checklist for the other accounts to close.
Frequently Asked Questions
Can I transfer road tax to my next car?
No. The paid road tax is attached to the vehicle.
Does remaining road tax make my car worth more?
It is a benefit a buyer can consider. It does not guarantee a dollar-for-dollar increase in the selling price.
Will a dealer refund it separately?
Only if that is part of your written agreement. Check whether the offer includes it.
Should I use the PARF/COE encashment timeline for road tax?
No. They are separate items. Check the road-tax refund status and payment arrangements with LTA.