200% Auto Tax = Bicycle

You may have heard that Copenhagen people ride bicycles a lot. Someone here waxes poetic about how wonderful it is to ride a bike there.

You may have also heard that fuel taxes are high in Europe so that’s why people drive little cars.

But I’ll bet nobody ever told you how much it costs to buy a car in Denmark.  The tax is the highest in Euroland at 180% + the highest VAT in Euroland at 25%. There is a little bit of bureaucratic  fiddling of the numbers, but the average comes out at 200%!!!

This means that if you bought a car that cost $20,000, the total would be $60,000. This is in “after 70% income taxed money” you are paying for this car.

And then you get to pay $6 a gallon for fuel.

No wonder everybody in Copenhagen rides a bike. They would be crazy not to.

2 replies
  1. Eric
    Eric says:

    That’s where I heard it first, but then I googled and found many other sites and residents verifying it. Including a quote buried in this NYT article:
    “The country imposes a punitive tax of about 200 percent on new cars, so a vehicle that would cost $20,000 in the United States costs $60,000 here.”

    http://www.nytimes.com/2009/12/02/business/energy-environment/02electric.html?_r=2&dbk

    Florida has some of the lowest auto taxes in the South, since the legislators didn’t mimic other Southern states by putting in Personal Property Taxes on automobiles.

    I think my mother was paying $600 a year to tag her car every year in a particular Virgina county in the ’90’s. They have since passed Tax Relief measures , but I just ran the calculator and it is still $450 per year on a $20,000 car.

    http://taxes.co.frederick.va.us/treasurer/treasurer_tax_calc.aspx

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