Vehicle registration fees are rising sharply across various regions, with Normandy’s costs nearly doubling to 60 euros per fiscal horsepower by January 2025. This surge is causing frustration among car buyers, as seen in Calvados, where registration for an SUV jumped from 418 to 578 euros. Regions are increasing these fees to compensate for declining state grants, leading to a national average tax hike of 11%. Electric vehicles remain exempt, while the tax significantly impacts regional budgets.
Rising Costs of Vehicle Registration Certificates
The financial burden of vehicle registration is becoming increasingly heavy for car owners. This year, the fees associated with obtaining a registration certificate have surged in various regions. In Normandy, for instance, the cost has nearly doubled within a two-year span, with the tax jumping from 46 to 60 euros per fiscal horsepower as of January 1, 2025. This significant hike marks the maximum allowable rate in the country, following a prior increase from 35 to 46 euros just a year earlier.
Impact on Car Buyers and Regional Budgets
At a car dealership in Calvados, potential buyers are visibly frustrated. Take Xavier, for example, who is eyeing an SUV. Only a few weeks ago, the registration fee for his vehicle would have been 418 euros. Now, he faces a staggering 578 euros. This unexpected rise feels like a slap in the face for consumers.
Xavier expressed his disappointment, stating, “160 euros for an option on the vehicle is reasonable, but we have other financial priorities besides escalating taxes.” This sentiment resonates with many, as another customer lamented the pain of high-end vehicle registration fees.
According to Eric Champarnaud, co-founder of the marketing consultancy C-Ways, regions are compelled to explore alternative funding sources to maintain their budgets. Each year, regional authorities vote on the fiscal horsepower tax rates. Normandy has justified its latest increase as a necessary move to secure additional tax revenues, estimating that the rise to 60 euros will generate over 36 million euros more than what was planned for the 2024 budget, as noted by vice-president Virginie Carolo-Lutrot.
Other regions are similarly motivated by the need to replenish their budgets in light of declining state grants. Champarnaud further clarified that while the increase impacts thermal and hybrid vehicles, electric cars remain exempt from these rising costs.
Nationally, the average increase in this specific tax has reached 11%, with significant disparities across different regions. For instance, in Centre-Val de Loire, the rate increased from 55 to 60 euros, while Provence-Alpes-Côte d’Azur saw a rise from 51.20 to 59 euros. In Nouvelle-Aquitaine, the tax jumped from 45 to 53 euros, and in Corsica, it went from 27 to 43 euros, based on official administrative data.
As of February 1, 2025, additional increases have been noted in various regions, including Brittany (from 55 to 60 euros), Grand Est (from 48 to 60 euros), and Réunion (from 51 to 57 euros). Conversely, some areas maintain stable rates, such as Martinique at 30 euros and Île-de-France at 54.95 euros. In total, this tax contributed around two billion euros to regional finances in 2023, accounting for 7 to 8% of their overall resources, as reported by the association Regions of France (RdF).