What is ARF?
The Additional Registration Fee (ARF) is a tax levied when you first register a vehicle in Singapore. It's calculated based on the vehicle's Open Market Value (OMV) and uses a tiered rate structure designed to make luxury vehicles proportionally more expensive.
ARF is one of the largest cost components when buying a car in Singapore, often exceeding the COE premium for higher-value vehicles.
To work out the ARF for a specific car, use our ARF Calculator.
ARF Tiers and Rates
The ARF uses a progressive 5-tier system (revised February 2023):
| OMV Range | ARF Rate |
|---|---|
| First $20,000 | 100% |
| $20,001 – $40,000 | 140% |
| $40,001 – $60,000 | 190% |
| $60,001 – $80,000 | 250% |
| Above $80,000 | 320% |
The steeper rates at higher tiers mean luxury vehicles pay significantly more ARF relative to their OMV.
ARF Calculation Examples
Example 1: Budget Car (OMV $18,000)
- First $18,000 × 100% = $18,000 ARF
- Total ARF: $18,000
Example 2: Mid-Range Car (OMV $35,000)
- First $20,000 × 100% = $20,000
- Next $15,000 × 140% = $21,000
- Total ARF: $41,000
Example 3: Premium Car (OMV $55,000)
- First $20,000 × 100% = $20,000
- Next $20,000 × 140% = $28,000
- Next $15,000 × 190% = $28,500
- Total ARF: $76,500
Example 4: Luxury Car (OMV $100,000)
- First $20,000 × 100% = $20,000
- Next $20,000 × 140% = $28,000
- Next $20,000 × 190% = $38,000
- Next $20,000 × 250% = $50,000
- Remaining $20,000 × 320% = $64,000
- Total ARF: $200,000
Notice how the ARF for the luxury car ($200,000) is double the OMV itself, due to the steep 320% top tier.
Why ARF Matters
1. Major Cost Component
For a mid-range car, ARF often represents 30-40% of the total purchase price (excluding COE).
2. Affects PARF Rebate
When you deregister, your PARF rebate is calculated as a percentage of the ARF paid. Higher ARF = higher potential PARF rebate.
3. Depreciation Calculation
Your car's depreciation is heavily influenced by ARF:
- High OMV car: Steeper depreciation due to higher ARF loss
- Low OMV car: Flatter depreciation curve
4. Resale Value
Since PARF decreases each year, ARF indirectly affects your car's resale value.
ARF for Different Vehicle Types
Electric Vehicles (EVs)
EVs follow the same ARF structure. However, EVs often have higher OMV due to battery costs, resulting in higher ARF. Government rebates (like the EV Early Adoption Incentive) help offset this.
Motorcycles
Motorcycles also pay ARF, but the rates are much lower:
- First $5,000: 15%
- Above $5,000: 50%
Commercial Vehicles
Goods vehicles and buses have different ARF structures aligned with their vehicle categories.
Historical Context
The tiered ARF system has evolved significantly:
| Year | Change |
|---|---|
| 2013 | Introduced tiered structure (previously 100% flat rate) |
| 2018 | Rates increased for higher tiers |
| 2022 | New 220% top tier for OMV above $80,000 (pre-Feb 2023, no longer applies) |
| 2023 | Current: 100/140/190/250/320% on $20,000 OMV bands, 320% above $80,000 |
The February 2023 revision introduced steeper tiers to moderate demand for luxury vehicles while keeping entry-level cars more accessible.
ARF vs COE: What's the Difference?
| Aspect | ARF | COE |
|---|---|---|
| Based on | Vehicle value (OMV) | Market bidding |
| Paid to | Government (tax) | LTA (quota licence) |
| Refundable | Yes, via PARF rebate | Yes, pro-rated on deregistration |
| Affects | Vehicle depreciation | Right to own vehicle |
Both are one-time fees paid at registration, but they serve different purposes.
Minimising ARF Impact
- Choose lower-OMV models: The tiered structure punishes high OMV exponentially
- Consider parallel imports: Sometimes have lower OMV assessments
- Factor PARF into TCO: Higher ARF means higher potential rebate
- Time your deregistration: Maximise PARF recovery
Checking Your Vehicle's ARF
The ARF is shown on your vehicle registration documents. You can also:
- Check via OneMotoring with your vehicle number
- Ask the dealer during purchase
- Calculate from OMV using the tiers above, or with our ARF Calculator
Frequently Asked Questions
Is ARF refundable?
Yes, partially. When you deregister within 10 years, you receive a PARF rebate. For COEs obtained from the second February 2026 bidding exercise, it is 5-30% of ARF depending on vehicle age, capped at $30,000. Cars with earlier COEs keep the legacy rates of 50-75% of ARF. See PARF for the full schedule.
Why does Singapore have ARF?
ARF serves multiple purposes: revenue generation, controlling vehicle population, and ensuring car ownership costs reflect usage of limited road space.
Can I avoid paying ARF?
No, ARF is mandatory for all new vehicle registrations in Singapore. There are no exemptions for private vehicles.