Overview
- ARBA estimates 75% of vehicle owners, or about 1.5 million units, would pay less in 2026, while the remaining 25% would see increases below inflation according to the agency.
- The plan compresses the scale from 15 to 5 brackets and lowers the rate range to 1%–4.5%, compared with the current 3.64%–5% structure.
- Officials say the recalibration seeks to restore progressivity after 2025 valuation changes pushed many cars into higher brackets when the prior tax law was not approved.
- Model-by-model examples released by ARBA show notable nominal reductions, including a 41% drop for a 2021 Fiat Cronos and a 62% cut for a 2024 Volkswagen Taos.
- The measure was sent with the 2026 Budget and debt request for legislative debate, and it proposes paying the tax in 10 installments starting in February if the final text is unchanged.