What you need to know about taxes when buying and selling a car in 2025

Taxes when buying and selling a car in 2025 remain an important part of car transactions. As of 14:42 6 June 2025, Russian legislation retains the same taxation rules, but there are nuances that are important to consider. In this article, GetCar.ru and I will break down the main aspects of tax obligations in car transactions so you can avoid unnecessary costs.

Taxes when buying a car

No tax deduction

The purchase of a car is not directly taxable, but there are no deductions when buying a car. For example, unlike real estate, it is not possible to refund 13% personal income tax for the purchase of a car. Also, this rule applies regardless of whether the car is bought on credit or for cash. In addition, initiatives to introduce a deduction for families with children have not yet been adopted. This is an important point in the taxation of autos in 2025.

Transport tax

After purchase, you are obliged to pay transport tax. For example, its amount depends on the engine capacity and the region of registration. Tax is also charged from the moment the car is registered with the State Automobile Inspection Service. In addition, if the car falls under the luxury category (cost of 10 million roubles or more), an increasing coefficient of 3 is applied. This is part of the tax liability in car transactions.

Taxes on the sale of a car

Personal income tax on sale

When selling a car, personal income tax is payable if the car has been in ownership for less than 3 years. For example, the rate for residents of the Russian Federation is 13%, and for non-residents it is 30%. Also from 2025 there is a progressive scale: if the income exceeds 2.4 million rubles, the rate on the amount of the excess - 15%. In addition, tax is calculated from the difference between the sale and purchase price, if there are documents, or from the amount reduced by a deduction of 250,000 rubles. This is the key rule of auto taxation in 2025.

Cases of exemption from tax

Tax is not payable in three cases. For example, if the car has been in ownership for more than 3 years, personal income tax is not charged. Also, tax is zero if the car is sold for less than it was bought, provided that documents are available. In addition, when selling for 250,000 rubles or less, declaration and tax are not required. This reduces tax liabilities in car transactions.

How to reduce tax on sale

Utilisation of deductions

You can reduce tax in two ways. For example, you can deduct from income the amount of the purchase if there is a contract and payment documents. You can also apply a fixed deduction of 250,000 roubles if there are no documents. In addition, you can choose only one option. This helps to save money when taxing a car in 2025.

Filing of declaration

A 3-NDFL declaration must be submitted by 30 April of the year following the year of sale. For example, if a car is sold in 2025, it must be reported by 30 April 2026. Also, the tax is paid by 15 July of the same year. In addition, even with zero tax, a declaration must be filed if the period of ownership is less than 3 years. This is important for compliance with tax obligations in car transactions.

Additional tips

Saving documents

Keep all documents. For example, the sale and purchase agreement and receipts will help to reduce tax. It is also important when selling a donated or inherited car, where you can use the expenses of the donor or the inheritor. In addition, without documents, you are limited to a deduction of 250,000 rubles. This affects taxes when buying and selling a car.

Post-sale inspection

After the sale, check the registration. For example, if the buyer has not re-registered the car within 10 days, transport tax will continue to be charged to you. Also submit an application to the traffic police to stop registration, attaching the sale contract. In addition, this will protect you from unnecessary tax assessments. This is an important aspect of car taxation in 2025.

Conclusion: a smart approach to taxes

Taxes on buying and selling a car in 2025 require attention to the length of ownership, paperwork and deductions. The purchase does not entitle you to a deduction, but obliges you to pay transport tax, while the sale may require personal income tax. With GetCar.ru you will learn how to minimise taxes on the purchase and sale of a car. Keep your documents and check registration to avoid unnecessary expenses!