2022 Car Licence Fee Overview | Licence Fee, Renewal Procedure & Document

moneyhero

moneyhero

Last Updated 26 July, 2022

How much is the car licence renewal fee? Is there any difference between the licence renewal fees for private cars and electric cars? Are the validity periods of every licence type the same? MoneyHero has prepared a guide for applying for different vehicle licences, an overview of renewal fees, procedures and documents required, etc.

2022 Car Licence Fees

Starting from 24 February 2021, 11 am, the Government has adjusted the annual car licence fees for private cars and electric cars while other vehicle classes remain unchanged. The licence fee for private cars is based on the cylinder capacity of the engine, e.g. 1,500cc, 2,500 cc, etc., while the price for electric cars is based on their unladen weight. The adjusted annual licence fees are listed in the following table for car owners to calculate their licence renewal fee.

Private Car Licence Fee: Petrol

Private Car Licence Fee: Petrol
Cylinder capacity of engineAnnual Licence Fee*4-month Licence Fee*
<1,500ccHK$5,074HK$1,804
<2,500ccHK$7,498HK$2,653
<3,500ccHK$9,929HK$3,504
<4,500ccHK$12,360HK$4,355
>4,500ccHK$14,694HK$5,171
*Traffic Accident Victims Assistance Fund Levy included. The levy for one year is HK$114, and the levy for 4 months is HK$38. If a private car uses fuel of light diesel oil, the additional fee required has been adjusted to HK$1,898.

Private Car Licence Fee: Diesel

Private Car Licence Fee: Diesel
Cylinder capacity of engineAnnual Licence Fee*4-month Licence Fee*
<1,500ccHK$6,972HK$2,469
<2,500ccHK$9,396HK$3,317
<3,500ccHK$11,827HK$4,168
<4,500ccHK$14,258HK$5,019
>4,500ccHK$16,592HK$5,836
*Traffic Accident Victims Assistance Fund Levy included. The levy for one year is HK$114, and the levy for 4 months is HK$38. If a private car uses fuel of light diesel oil, the additional fee required has been adjusted to HK$1,898.

Electric Car Licence Fee

The electric car licence fee is calculated based on the weight of the electric car; therefore, the price is generally much lower than petrol and diesel private cars. There are also two kinds of licence fees for electric cars, i.e. annually or 4-monthly. The licence fee for the well-known electric car brand, Tesla, can be calculated according to the following table.

Take Tesla Model 3 as an example: the car weighs 1,844kg, and the annual electric car licence fee for the first metric tonne (1000kg) is HK$572 with a surcharge of HK$124 for every 250kg thereafter, so the Model 3’s annual electric car licence fee is HK$1,068.

Unladen weightAnnual Licence Fee4-Month Vehicle Licence
<Not exceeding 1 tonne; andHK$572 

HK$30 + 35% of annual licence fees of vehicle licences

An additional fee for each 250kg (less than 250kg counts as 250kg) unladen weightHK$124

Car Insurance

Having a valid Third Party Risk Insurance (“third party insurance”) is necessary for licence renewal as it is a legal requirement. According to Section 4 of the Motor Vehicles Insurance (Third Party Risks) Ordinance (Cap. 272), it is illegal for any person to use, or to permit others to use, a motor vehicle on the road without an in-force third party risk insurance. Any violation may lead to a fine of HK$10,000 and 12 months of imprisonment, and the person concerned will be disqualified from holding or obtaining a licence to drive a motor vehicle (ranging from 12 months to 3 years).

Third Party Risk Insurance, also known as Third Party Liability Insurance or simply called “third party insurance”, as the name implies, covers the injury, death, and property damage to third parties other than the car owner or the policyholder. In addition to “third party insurance,” to get broader coverage, car owners can choose a more comprehensive insurance policy, also known as “comprehensive insurance”.

Get Quotes Online, Simple and Secure

When buying a car, many people would appoint a car dealership or agent to handle their car insurance for convenience purposes. However, to clearly understand the protections, it is strongly recommended that car owners/car-owners-to-be compare and select the appropriate car insurance by themselves. MoneyHero offers instant online car insurance quotes. All you need to do is enter your basic information to get instant premium quotes for most car models. It is very simple and convenient!

How to Renew a Car Licence

Online or Phone booking

Unless a car is registered and licensed, it is illegal to be driven or used on the road in Hong Kong. Registration is usually a one-off matter, and car owners shall renew their licences 4 months before the current licence expiry. There are two kinds of licence, i.e. annually and 4-monthly. If your car licence is going to expire in the coming 4 months or it has expired less than 2 years, you may make an appointment to renew the car licence at the nearest licensing office through an online appointment or via the 24-hour phone hotline 3763 8080.

In addition, all private cars and LGVs weighing not more than 1.9 tonnes with a car licence for not less than 6 years must undergo an examination annually. Renewal can only be filed if passing the examination. There is no need to wait till the expiry date; car owners can submit the renewal 4 months before the due date.

TIPS: After making an appointment, the applicant or the agent can renew the licence at the licensing office, together with completed application forms and required documents at the reserved time slots.

Car Licence Renewal: Use the “i AM Smart+” App

The Government “iAM Smart+” app has the digital signing function that car owners can now use to renew their car licence without the need to queue up in person.

How to activate the “iAM Smart+” mobile app digital signing function:

    1. Download the “iAM Smart+” app, bring your HKID card to a post office in person, and activate the digital signing function at a self-registration kiosk or registration service counter.
    2. Scan the QR code with the “iAM Smart+” app.
    3. Present your HKID card to the staff or insert the card into the slot on the kiosk for identity authentication.
    4. Set up your mobile phone’s biometric unlock authentication, 6-digit password, verification email address, etc.
    5. After completing the above steps, you can now use the “iAM Smart+” app to apply for different Government online services, including online licence renewal.

Car Licence Renewal: Application by post

If you wish to submit your application by post, you may follow the steps below:

    1. Obtain an application form.
    2. The form is available at the Home Affairs Department Enquiry Centres, post offices, Transport Department Licensing Offices, Transport Department's website (TD558), or through Transport Department Customer Service Hotline (2804 2600) fax-on-demand service.
    3. Complete the application form.
    4. Post the application form together with the relevant supporting documents and appropriate fee to the Licensing Office.

TIPS: If your application is in order, the Transport Department will send the required licensing document to you by registered post within 10 working days upon receipt of application.

What to do if a Car Licence Has Expired?

If a car licence expires, does the car owner need to pay a fine? Car owners are required to pay an additional fee for the unlicensed period (period from the expiry date of the original licence to the day the new licence comes into effect). Car owners should apply for renewal as soon as possible and pay the required fee. Unless the car owner can provide satisfactory proof that the car has not been used on the road during the entire unlicensed period, the car owner must pay an additional fee for the unlicensed period.

Additional fee = Annual Licence Fee (Excluding Traffic Accident Victims Assistance Fund Levy HK$114) X 0.33% X number of days of the unlicensed period [after the licence expired]

Documents Required for Licence Renewal

    1. Completed Application Form (TD558).
    2. Proof of address (original or copy).
    3. Certificate of incorporation/identity document (photocopy is acceptable).
    4. Valid Third Party Risk Insurance Certificate/Cover Note.
    5. Original vehicle registration document signed and stamped with a company chop (if applicable). The chop must be identical to that on the form.
    6. Renewal Fee.
    7. Other Documents (If the car is subject to inspection, please provide the Certificate of Fitness or Certificate of Roadworthiness).

Requirement of Proof of Address

When applying for licensing services, it is necessary to provide an original or a copy of the address proof document issued within the last 3 months; otherwise, the Transport Department may suspend the application according to the relevant legislation. Acceptable proof of address is a document, bill, or statement issued within the last 3 months from the application date and clearly shows the name and address of the applicant, the name of the issuing organisation and the issue date. Photocopies, facsimiles and digital (i.e. via mobile phone or computer) versions are acceptable.