Why a Corolla Costs US$154,000 in Singapore
The result is a car price that works as a very large tax on owning one.
Picture a woman named Mei, 42, who has lived in Singapore all her life. She is about to buy her first car, and she asks the salesperson one question: "How much of this price is the car?"
The permit alone is about two-thirds of the price. On 8 October 2026 Toyota Singapore listed a Corolla Altis 1.6 at SGD 197,888, or about US$154,000. In the United States, a new Corolla LE lists at about US$23,300.
Where the money goes
Singapore limits the number of cars on a small island. To do that it charges layered fees.
| Layer | What it is | Size |
|---|---|---|
| Open market value | The car's import value, before Singapore's fees | Set by the maker |
| Excise duty | 20% of open market value | Government revenue |
| Additional registration fee | Tiered: 100% of the first SGD 20,000 of value, 140% of the next 20,000, 190%, 250%, then 320% above SGD 80,000 | Government revenue |
| Registration fee | A flat fee | SGD 350 |
| Certificate of Entitlement | A permit to own a car for ten years, bought at auction | About SGD 130,000 in the 7 October 2026 round |
The Certificate of Entitlement is the biggest piece. The Land Transport Authority runs auctions twice a month. In the first October round, the price for a small car permit (Category A) closed at about SGD 130,000. That permit expires after ten years.
If we take a car with a value of SGD 30,000 and add those layers, the fees and permit come to about SGD 170,000. That is arithmetic from the published rates, not a figure from the government.
Why it exists
The government's stated goal is to keep traffic and pollution under control. It also raises large revenue. Both can be true. Singapore has built excellent public transport, and many residents do not need a car.
The result is a car price that works as a very large tax on owning one.
You could…
-
Look up a tax breakdown for any car you are considering. Many countries publish one.
-
Ask how long the fee lasts. A ten-year permit is a different cost from a one-time registration.
-
Compare the tax in the price to what the country spends it on.
If you have lived in a place with a car permit or quota, what did it change? Tell us here. Another reader may be weighing the same trade.
Sources: LTA OneMotoring (fee schedule); Toyota Singapore, read 8 October 2026; COE round results reported by Valuemax PQP. Figures are estimates for planning, based on public data.
Tell us in the comments