- The 2027 vehicle tax is calculated using the same formula, but the fixed fee is doubled, from 12.5 to 25 LEK for diesel and from 10 to 20 LEK for gasoline.
- The 27 LEK per-liter turnover tax on gasoline and diesel is removed. Together with VAT, the tax burden per liter falls by 32.4 LEK.
- A ten-year-old 1,600 cc diesel car pays 9,600 LEK per year, up from 4,800 LEK today.
- Vehicles up to three years old and electric vehicles are subject to the tax. An electric vehicle pays 15,000 LEK per year.
- It is a draft law in Parliament. If it is passed, the effects will take effect on January 1, 2027.
The 2027 vehicle tax changes along with the fuel price, according to the draft law currently before Parliament. The 27-LEK circulation tax per liter is removed from gasoline and diesel. To cover the lost revenue, the annual vehicle tax is increased.
For a car owner, the question is simple: how much you pay once a year at the annual inspection and how little you pay at the pump. The answer depends on engine displacement, the vehicle's age, the fuel, and the miles you drive.
This article provides the formula, the table of coefficients, and illustrative examples. The text has not yet been voted on and may be amended in Parliament.
Read also: Purchase, lease, or rent a business car, Effects of the 2027 Fiscal Package by business type, Fiscal Package 2027: What's being proposed for businesses?
How is the 2027 vehicle tax calculated?
The formula remains the one you know. The displacement in cc is multiplied by the depreciation coefficient and the fixed fuel rate. The draft law changes the fixed rate and extends the tax to vehicles that currently do not pay it.
| Element | Today | According to the draft law |
|---|---|---|
| Fixed fee for diesel | 12.5 LEK | 25 LEK up to 2,000 cm3, 26 LEK over 2,000 cm3 |
| Flat fee for gasoline | 10 LEK | 20 LEK for up to 2,000 cm3, 21 LEK for over 2,000 cm3 |
| Flat rate for gas | It is not mentioned in the law. | 20 LEK for up to 2,000 cm3, 21 LEK for over 2,000 cm3 |
| Buses | 12.5 LEK for diesel, 10 LEK for gasoline | 25 LEK for diesel, 20 LEK for gasoline and gas |
| Means up to 3 years old | They don't pay. | pay, with a coefficient from 0.15 |
| Power tools | Excluded from tax | 15,000 LEK per year, motorcycles 1,000 LEK |
| Trailers and semi-trailers | Excluded from tax | 1 LEK per kg up to 50,000 kg; 60,000 LEK for any weight above that. |
| Annual luxury vehicle tax | 21,000 LEK | 40,000 LEK |
What are the obsolescence coefficients?
The coefficient increases with the vehicle's age, and vehicles are divided into three groups. Group I includes passenger cars, motorcycles, and mixed-transport vehicles. Group II covers other vehicles, such as trucks, while Group III comprises buses.
For group I, from the fourth year up to the 24th year, the coefficient remains as it is today. Years 1 through 3 are added, and the scale extends to the 30th year. For group II, the coefficient increases slightly at each age.
| Age | Group I | Group II | Group III |
|---|---|---|---|
| 1 | 0.15 | 0.15 | 0.04 |
| 2 | 0.16 | 0.17 | 0.05 |
| 3 | 0.17 | 0.19 | 0.06 |
| 4 | 0.18 | 0.21 | 0.07 |
| 5 | 0.19 | 0.23 | 0.08 |
| 6 | 0.20 | 0.25 | 0.09 |
| 7 | 0.21 | 0.27 | 0.10 |
| 8 | 0.22 | 0.29 | 0.11 |
| 9 | 0.23 | 0.31 | 0.12 |
| 10 | 0.24 | 0.33 | 0.13 |
| 11 | 0.28 | 0.38 | 0.15 |
| 12 | 0.32 | 0.40 | 0.16 |
| 13 | 0.36 | 0.42 | 0.17 |
| 14 | 0.40 | 0.44 | 0.18 |
| 15 | 0.44 | 0.46 | 0.21 |
| 16 | 0.48 | 0.48 | 0.24 |
| 17 | 0.52 | 0.50 | 0.27 |
| 18 | 0.56 | 0.52 | 0.30 |
| 19 | 0.60 | 0.54 | 0.33 |
| 20 | 0.64 | 0.56 | 0.36 |
| 21 | 0.68 | 0.58 | 0.39 |
| 22 | 0.70 | 0.60 | 0.41 |
| 23 | 0.72 | 0.62 | 0.43 |
| 24 | 0.74 | 0.64 | 0.45 |
| 25 | 0.78 | 0.67 | 0.48 |
| 26 | 0.82 | 0.70 | 0.51 |
| 27 | 0.86 | 0.73 | 0.54 |
| 28 | 0.90 | 0.76 | 0.57 |
| 29 | 0.94 | 0.79 | 0.60 |
| 30 | 0.98 | 0.82 | 0.63 |
After age 30, the coefficient increases by 0.02 per year for all three groups.
How is the calculation done for a car?
Take a 1,600 cc diesel passenger car, ten years old. Its coefficient is 0.24 and the flat fee is 25 LEK. 1,600 × 0.24 × 25 equals 9,600 LEK per year. Today the same car pays 1,600 × 0.24 × 12.5, or 4,800 LEK.
How much do you actually pay? Examples with figures.
The table compares the current tax with the proposed tax for the most common vehicles. The figures are annual.
| Tool | Today | From 2027 | Difference |
|---|---|---|---|
| Gasoline passenger cars, 1,400 cc, 15 years old. | 6,160 LEK | 12,320 LEK | +6,160 LEK |
| Diesel passenger cars, 1,600 cc, 10 years old. | 4,800 LEK | 9,600 LEK | +4,800 LEK |
| Diesel passenger cars, 2,000 cm3, 12 years old. | 8,000 LEK | 16,000 LEK | +8,000 LEK |
| Diesel passenger cars 2,000 cm3, 20 years old | 16,000 LEK | 32,000 LEK | +16,000 LEK |
| Diesel passenger car, 2,200 cc, 8 years old. | 6,050 LEK | 12,584 LEK | +6,534 LEK |
| Gasoline passenger cars, 1,500 cc, 2 years old. | Does not pay | 4,800 LEK | +4,800 LEK |
| Diesel truck, 6,000 cc, 12 years old. | 27,000 LEK | 62,400 LEK | +35,400 LEK |
| Electric vehicle, all ages | Excluded from tax | 15,000 LEK | +15,000 LEK |
For passenger cars over three years old, the tax is doubled. For those over 2,000 cc it increases slightly more, because the flat rate is 26 and 21 LEK. Trucks are affected on both sides, by both the flat rate and the coefficient.
Luxury vehicles also pay the annual tax, which ranges from 21,000 to 40,000 LEK. A car is considered luxury if its engine displacement is 3,000 cm³ or higher or if its value is 5,000,000 LEK or more.
When you win and when you lose, the pounds that cover the tax
The savings go to the pump, the cost goes to technical inspection. If the reduction is fully passed on to the price, each liter costs 32.4 LEK less. The break-even point is found by dividing the tax increase by the savings per liter.
| Tool | Tax increase | Letters that cover it | Kilometers per year |
|---|---|---|---|
| Diesel passenger cars, 1,600 cc, 10 years old. | 4,800 LEK | 148 liters | about 2,300 km, with 6.5 liters per 100 km |
| Gasoline passenger cars, 1,400 cc, 15 years old. | 6,160 LEK | 190 liters | about 2,700 km, at 7 liters per 100 km |
| Diesel passenger cars, 2,000 cm3, 12 years old. | 8,000 LEK | 247 liters | about 3,500 km, at 7 liters per 100 km |
| Diesel passenger cars 2,000 cm3, 20 years old | 16,000 LEK | 494 liters | about 7,100 km, at 7 liters per 100 km |
| Diesel truck, 6,000 cc, 12 years old. | 35,400 LEK | 1,311 liters | about 5,200 km, at 25 liters per 100 km |
| Electric vehicle | 15,000 LEK | There is no fuel savings. | pays more in any case |
For trucks, the calculation was made at 27 LEK per liter, because a business that deducts the VAT on fuel only saves the tax. For passenger cars, it was made at 32.4 LEK, the saving that the consumer sees at the pump.
The conclusion is clear for vehicles that move every day. For most passenger cars, the threshold is between 2,000 and 5,000 km per year. Older cars with large engines need more kilometers. Vehicles that sit in the garage, electric vehicles, and fleets with many vehicles and few kilometers pay more.
This calculation only holds if the reduction brings the price down to the pump price. The draft law clearly states that the final price also depends on the exchange rate and market costs.
Why is the annual vehicle tax increasing?
The turnover tax brings the budget about 26 billion LEK per year, plus 5.2 billion LEK in VAT on top of that. Its removal creates a gap of about 31.2 billion LEK. Vehicle taxes are expected to cover it, rising from around 7.2 billion to about 33.8 billion LEK per year.
The burden shifts from the liter to the vehicle. Those who drive a lot pay less than they do today, those who own a vehicle and drive little pay more. The municipalities' share of this tax falls from 251 TP3T to 51 TP3T.
What businesses that hold tools need to know
How is the tax recorded in accounting?
The annual vehicle tax is an expense of the period in which it is paid and is not added to the vehicle's value. You can find the full treatment in National taxes affecting business. When the vehicle is leased or financed, the contract specifies who pays the tax. Check it before renewal, because the amount doubles.
When is it paid, and what happens if there's a delay?
The tax is valid for 365 days and must be paid before the annual technical inspection. An owner who is more than 10 days overdue after the expiration date pays a fine, in accordance with the law on tax procedures. Payment is verified by the State Police.
What are you doing with the fleet before January?
- Generate the list of vehicles by engine displacement, year of manufacture, and fuel.
- Calculate the new tax for each vehicle using the formula above.
- Compare it to the liters each vehicle consumes per year.
- Decide on vehicles that are not moving. The law in force exempts from tax a vehicle that is taken out of service by surrendering the license plate and registration certificate.
- Include the new tax in the 2027 budget and in transportation fares.
- Draft law, the full text with 7 articles and the appendix of coefficients
- Relationship, justification and budgetary effects
- Report of the Commission on Legal Affairs, November 2, 2026
Every time there is a tax or financial change that affects your business, we notify you directly by email with a practical explanation.
Send me free notificationsFrequently Asked Questions
Has the vehicle tax for 2027 been set?
No. It is a draft law in the Assembly. The Commission on Legal Affairs approved it in principle on November 2, 2026, as an advisory committee. If it is voted on in the plenary session, its effects will begin on January 1, 2027.
How much does a 2,000 cc diesel car cost?
It depends on age. The ten-year-old pays 2,000 times 0.24 times 25, so 12,000 LEK per year. The fifteen-year-old pays 22,000 LEK.
Do new cars pay taxes?
Yes, according to the draft law. Today, vehicles up to three years old do not pay. From 2027, a one-year-old 1,500 cc gasoline car will pay 4,500 LEK per year.
How much do electric cars cost?
They pay 15,000 LEK per year, regardless of age. Electric motorcycles pay 1,000 LEK per year.
Did the price of diesel drop by 32 LEK per liter?
The tax burden amounts to 32.4 LEK per liter, including a 27 LEK tax and 5.4 LEK VAT. The pump price also depends on the exchange rate and margin, so the reduction may be smaller.
When is the new fee paid if my vehicle inspection is in March?
The draft law contains no transitional provisions. The tax paid in 2026 is valid for 365 days. The next payment, after January 1, 2027, is expected to be calculated at the new rate.
Are the vehicles of persons with disabilities excluded?
Yes. The draft law does not affect the existing legal exemption. It applies to passenger cars with up to four seats plus one extra seat and up to 2,500 cc when used solely for personal needs.
Legal basis
Law No. 9975, dated July 28, 2008, “On National Taxes”, as amended, Articles 2, 3, 4, 5, 8, 9 and Annex No. 1. Draft Law “On Certain Amendments to Law No. 9975/2008,” with 7 articles and the new Annex No. 1. Explanatory Memorandum of the draft law. Report of the Commission for Legal Affairs and Public Administration, dated November 2, 2026. Law No. 9920/2008 “On Tax Procedures,” Article 114, regarding the late‐payment penalty.
