Hong Kong Implements New EV License Fees from Nov 1, 2025

The Transport Department announced Tuesday that a new five-tier license fee structure for electric private vehicles (EVs) will officially take effect this Saturday, November 1, 2025, replacing the long-standing weight-based system with one based on rated power output (kW).

The overhaul, first proposed in April, will see fees rise in five gradual stages over six years — a significant extension from the original three-year plan — following concerns from lawmakers that the initial pace was too aggressive.

Under the revised framework, EVs are classified into five power bands, with Tier 1 (≤75 kW) starting at HK$1,500 per year from November 2025 to February 2027, gradually increasing to HK$3,000 by 2030, while the highest-powered models (Tier 5, >150 kW) will face the steepest increases, though final rates will still be 25% lower than comparable petrol vehicles and the lowest tier 40% cheaper. “This adjustment ensures fairness while preserving incentives for green mobility,” a Transport and Logistics Bureau spokesperson said.

Current EV owners whose licenses expire on or before February 28, 2026, and who renew before that date, will retain the old fee structure — averaging around HK$1,100 annually — while new registrations or renewals from March 1, 2026, onward will fall under the new system.

The decision to extend the transition from three to six years was made after feedback at the Legislative Council’s Transport Panel, with Ronick Chan Chun-ying (Real Politics Roundtable) saying, “Three years was too rushed. Six years is better, but still not ideal,” and calling for a 10-year phase-in to align final parity with the government’s 2035 petrol car phase-out target.

In a boost for inclusivity, EVs ≤75 kW owned by eligible disabled persons are 100% exempt from fees, while higher-powered models pay only the increment above the Tier 1 rate, with these concessions applying to new applications or renewals expiring on/after March 1, 2026.

Official data shows 99% of currently registered EVs fall within the first three tiers, meaning the majority of owners will see moderate increases starting at HK$1,500, with only 1% in Tier 4 and 0.1% in Tier 5 — typically high-performance luxury models. The old system charged EVs by net weight, while petrol cars were taxed by engine displacement — creating a wide cost gap (HK$1,100 vs. HK$7,500 on average) — but as batteries get lighter and more powerful, “weight no longer reflects vehicle value or road impact,” the Bureau explained, adding that the new power-based model brings Hong Kong in line with global cities like Singapore and London.

For EV owners, renewing early before February 28, 2026, locks in old rates, new purchases from November 1 are subject to the new fees, and disabled drivers should apply for exemptions via the Transport Department.

The government insists the reform supports decarbonization while ensuring equitable road use contributions — a delicate balance as Hong Kong accelerates toward its net-zero 2050 goal.