Pictures courtesy of MGR

Thailand has implemented a new car excise tax structure effective from 1 January 2026, reshaping vehicle prices across the market. Petrol-powered vehicles, especially large-engine and high-emission models, have become more expensive, while electric vehicles (EVs) and some hybrids now face lower tax rates. The change has an immediate impact on showroom prices, with increases ranging from several thousand baht to several million baht depending on vehicle type.

The reform was announced by the Excise Department and published on 2 January 2026, replacing the previous system that relied primarily on engine capacity. Under the new framework, tax rates are determined by carbon dioxide (CO₂) emissions and the use of clean energy technologies. This aligns taxation with environmental performance rather than cubic capacity alone.

For internal combustion engine (ICE) vehicles using petrol, tax rates now rise in tiers based on CO₂ emissions. Cars with engines not exceeding 3.0 litres and emitting no more than 100 grams of CO₂ per kilometre have seen their tax increase from 12% to 13%, adding about 5,000–6,000 baht per vehicle. Models with higher emissions are taxed progressively, while luxury and supercars with engines over 3.0 litres now face a 50% tax rate, up from around 40%, pushing prices up by hundreds of thousands to 2–3 million baht per car.

In contrast, clean-energy vehicles benefit from significant reductions. Battery electric vehicles (BEVs) have had their excise tax cut from 8% to 2%, while electric pickup trucks now pay 2%, up from 0%. Hybrid electric vehicles (HEVs), particularly eco-car platforms converted to hybrid systems, have seen their tax halved from 12% to 6%. Plug-in hybrid electric vehicles (PHEVs) are taxed at 5% if they can travel at least 80 kilometres on electric power per charge, or 10% if they cannot, while PHEVs with engines over 3.0 litres are taxed at 30%.

However, the overall price impact for EV buyers is moderated by policy changes. The EV 3.0 subsidy scheme, which provided discounts of up to 100,000 baht, ended on 31 December 2025. Although the EV 3.5 scheme has replaced it, reduced subsidy funding means EV prices may not fall as sharply as the tax cuts alone suggest.

MGR online reported that owners of vehicles registered before 2026 are not affected, as the previous tax rates still apply. Looking ahead, the new structure is expected to influence the second-hand market, with high-emission vehicles likely to depreciate faster as consumers increasingly favour lower-emission technologies.

Key Takeaways

• New excise taxes based on CO₂ emissions took effect on 1 January 2026, raising prices for petrol cars.

• EVs and certain hybrids benefit from lower tax rates, with BEV tax reduced to 2%.

• Older vehicles registered before 2026 are exempt, but used high-emission cars may lose value.

  

Adapted by ASEAN Now from MGRonline 2026-01-04

 

 

First, low cost (under 1500 baht) items, now all cars. What's next?! Thailand the land of ever increasing taxes, the locals are going to love this 😂

Thai government does not care about environment,

just more taxes/income.

Copying the woke/green west.

Why didn't we see about this new tax BEFORE jan 1st ?

12 minutes ago, FlorC said:

Thai government does not care about environment,

Exactly that.

Not a single word about the low emmision standard Diesel trucks ("pickups") which have the lowest excise tax and pollute the cities.

More steel for the Baht.

Combined with price capped Diesel fuel people will still buy them as a personal car for the shopping mall.

Politics doesn't touch this hot potato.

Post breaking forum rules removed. @NanLaew derogatiry comments or any form of abuse toward moderators, Admin, or this forum in general will not be tolerated and will result in strict consequences.

So, those that cashed in on BYD's special reduced price offer that expired on New Year's eve missed out on the lower tax rate this month.

And those that dragged their feet on that new Ranger Raptor V6 purchase in December are going to pay more this month.

Winning.

27 minutes ago, KhunBENQ said:

Exactly that.

Not a single word about the low emmision standard Diesel trucks ("pickups") which have the lowest excise tax and pollute the cities.

More steel for the Baht.

Combined with price capped Diesel fuel people will still buy them as a personal car for the shopping mall.

Politics doesn't touch this hot potato.

He he , don't touch my diesel pickup !

It's the people's car, personal use or not.

Pickups for personal use are higher taxed in the nanny state I escaped from.

21 hours ago, FlorC said:

It's the people's car, personal use or not.

I know and it's a bad choice driven by politics.

49 minutes ago, KhunBENQ said:

I know and it's a bad choice driven by politics.

Why is it a bad choice ?

It is easy to transport goods or people in the back.

You can't do that with an ordinary car.

And they are disel cars , much better than benzine cars.

On 1/4/2026 at 5:26 AM, Georgealbert said:

while luxury and supercars with engines over 3.0 litres now face a 50% tax rate, up from around 40%

Dang, I guess my planned purchase of the new Lamborghini Revuelto is off now, and I'll just have to make do with a BYD Dolphin! lol

I was in the Mercedes showroom this morning, the EQS450 has had its price reduced by 1 million baht.