Motor Vehicle Tax (MTV)

Motor Vehicle Tax covers a range of vehicles including motorized land vehicles and aircraft. These vehicles are motorized land vehicles registered under the Traffic Law registration and aircraft and helicopters registered by the General Directorate of Civil Aviation airplane. The tax categorizes vehicles based on their motorized nature and intended use. For example, cars, motorcycles, minibuses, trucks, and buses like are classified as motorized land vehicles and fall under this tax, while non-motorized vehicles and sea vehicles are exempt. Additionally, motorized vehicles such as electric bicycles have also been included in the tax scope​.

Motor Vehicle Tax is assessed and calculated annually in January. However, if there are changes in the vehicle’s engine specifications or age during the year, the tax amount is adjusted. Special provisions exist for electric vehicles. These vehicles are subject to a specific tax schedule based on engine power, and tax rates may be lower than those for conventional vehicles. This adjustment for electric vehicles aims to encourage environment friendly transportation​.

Taxation varies according to the vehicle’s model year, engine cylinder capacity, engine power, and other physical characteristics. For instance, as a car’s engine cylinder capacity increases, so does the tax payable. The age factor also plays a important role in taxation; as the vehicle ages, the tax amount may decrease. Furthermore, for certain vehicles, taxation is based on comprehensive insurance insurance values, while special discount rates apply to electric vehicles​.

The taxpayer for Motor Vehicle Tax is the individual or legal entity to whom the vehicle is registered. This tax begins when the vehicle is registered and ends when it is deregistered. If a vehicle is sold or transferred, the new owner assumes the tax liability and the previous owner’s obligation is extinguished. If the sale or transfer is recorded in the vehicle’s registration, the tax is assessed in the new owner’s name. If the deregistration process is completed in the first six months of calendar, the tax liability ends at the beginning of the second half of the year​.

There are certain exemptions and exceptions related to Motor Vehicle Tax. Vehicles owned by Public institutions, social security organizations, and certain local administrations are exempt from this tax. Similarly, specially adapted vehicles for persons with disabilities are also exempt from Motor Vehicle Tax. Additionally, under certain international agreements, vehicles belonging to foreign diplomatic missions in Türkiye are exempt from tax liability​.

Motor Vehicle Tax is paid in two equal installments each year in January and July. If changes are made to the vehicle’s technical characteristics or if ownership changes during the year, the second installment is calculated with reference to the new situation. The tax payable is determined based on the tariff established according to the vehicle’s type and features. If the vehicle owner fails to pay the tax, registration of the vehicle will not be processed and penalties may apply​.

Motor Vehicle Tax is applied to encourage vehicle owners to fulfill their environmental responsibilities and legal obligations. It is also a significant source of state revenue and has been structured through various regulations to balance the environmental impact of vehicles.