As of January 1, 2025, French motorists will face a significant increase in regional taxes on vehicle registration (gray cards), impacting their budgets amidst rising car maintenance costs. The tax varies by region and is calculated based on the vehicle’s fiscal horsepower. With recent tax hikes already affecting areas like Occitanie, Bourgogne-Franche-Comté, and Normandie, this change could lead many to reevaluate their vehicle choices and usage frequency, adding financial pressure to households across France.
The onset of 2025 brings new challenges for French motorists, especially with an upcoming increase in vehicle-related taxes. While many are aware of changes to savings accounts, vehicle owners need to prepare for a substantial hike in their expenses starting January 1, 2025. This adjustment is poised to impact households significantly, especially as car maintenance costs continue to rise.
Various expenses such as repair costs, insurance, fuel, tolls, and parking fees have escalated recently, and this trend seems set to continue. Specific regions in France have announced that from January 1, 2025, the regional tax affecting vehicle ownership and registration fees will rise. This includes the registration certification, commonly referred to as the carte grise. For many drivers, this increase could necessitate a reevaluation of their vehicle choices and usage frequency.
Increase in Regional Tax on Vehicle Registration
Effective January 1, 2025, the regional tax associated with gray cards will see an increase across several regions. While the amount varies by location and is mandatory upon vehicle registration, it is determined by the number of fiscal horsepower of the vehicle. Each region has the autonomy to set its unit cost, which is regularly assessed by regional councils. The prevailing trend indicates that numerous areas will experience notable tax increases in the upcoming year.
This adjustment is particularly burdensome for those who frequently register vehicles for personal or professional purposes. Additionally, purchasers of used vehicles will also encounter this tax when registering their new vehicles. This process, managed online through the Agence nationale des titres sécurisés (ANTS) website, is essential for associating a vehicle with its new owner, providing crucial identification details.
What Will This Increase Cost Motorists?
The cost associated with vehicle registration has always been a consideration for motorists, and the upcoming changes will further affect these expenses. Specifically, the carte grise price is derived from the regional tax, which currently ranges between 0 and 60 euros depending on the location. To determine the total registration fee, one must multiply this regional tax by the vehicle’s fiscal horsepower. For instance, if the tax rate is set at 20 euros, the total would be calculated based on the vehicle’s horsepower.
As of January 1, 2025, several regions have already confirmed pending increases: Occitanie, Bourgogne-Franche-Comté, and Normandie. Following a significant tax increase of nearly 31% in some areas last year, a further 30% hike is projected for early 2025. Specifically in Normandy, the regional tax, currently at 46 euros, will reach the government-mandated ceiling of 60 euros. To calculate the potential financial impact, simply find the difference required to reach this ceiling (14 euros) and multiply it by the vehicle’s fiscal horsepower. For instance, for a vehicle with 4 fiscal horsepower, this translates to an additional 56 euros; for a 7-hp SUV, expect a tax increase of 98 euros within just a couple of months.