Bulgarian Road Vehicle Tax 2026 — Formula, Municipal Rates, Eco-Component and Exemptions

Who owes the road vehicle tax

Under Art. 52 of the Local Taxes and Fees Act (ZMDT), road vehicle tax is levied on vehicles registered for road use in the Republic of Bulgaria, as well as on vessels and aircraft. The liable person under Art. 53 ZMDT is the owner of the vehicle — whether an individual or a legal entity.

The tax is paid to the budget of the municipality corresponding to the owner's permanent address (for individuals) or the company's registered seat. A change of permanent address shifts the tax obligation to the new municipality from the following calendar year.

Scope of this article

This article focuses on passenger cars up to 3.5 tonnes, to which the formula in Art. 55(1) ZMDT applies. Other categories — motorcycles and mopeds, trucks above 3.5 t, buses and special vehicles — are governed by separate rules, summarised briefly at the end of the article.

The formula (Art. 55 ZMDT)

The annual tax on passenger cars up to 3.5 t is determined by the formula:

Annual Tax = PropertyComp × EcoComp

where:

• PropertyComp — the product of the per-kW tax and the vehicle-age coefficient;
• EcoComp — a coefficient depending on the vehicle's Euro emission category.

This formula has applied since the 01.01.2019 redaction of Art. 55 ZMDT and remains in force in 2026. Each municipality adopts its own ordinance on local tax rates, setting the specific values within the statutory ranges.

Per-kW rate — statutory ranges for 2026

The basis for the property component is the engine power in kilowatts (kW) shown in the vehicle registration certificate. The Act prescribes lower and upper limits on the per-kW rate; municipal councils set the concrete figure inside this band.

The table below shows the 2026 statutory bands (converted to EUR at the fixed rate 1 EUR = 1.95583 BGN) together with the rates adopted by the Sofia Municipality as a reference benchmark:

Important: Sofia is given as a benchmark, but every municipality adopts its own ordinance within the statutory ranges. Before calculating, check the current ordinance of your municipality.

Comparison — Sofia, Plovdiv, Varna (indicative, 100 kW)

To illustrate inter-municipal differences, the table below shows the indicative annual tax for a passenger car of 100 kW, Euro 5, manufactured in 2016 (age coefficient 1.5; EcoComp 0.6):

Plovdiv and Varna figures are indicative and should be confirmed against the relevant municipal council's current ordinance.

Vehicle-age coefficient

The property component is adjusted by a coefficient that reflects the age of the vehicle. Art. 55(1) ZMDT provides:

How age is counted: the count runs from the year of manufacture, not a specific date. A vehicle with a 2021 manufacture year is treated as 5 years old in 2026 (coefficient 2.3). A 2016 vehicle → 10 years (coefficient 1.5). A 2010 vehicle → 16 years (coefficient 1.0).

An interesting inverse dynamic: the newest cars (up to 5 years) carry the highest coefficient 2.3, which offsets their lower environmental impact. Classic cars over 20 years old carry 1.1, but usually fall into a higher eco-coefficient bracket due to older Euro categories.

Eco-component (EcoComp)

The eco-component reflects the polluting impact of the vehicle based on its Euro emission category. The category is fixed in the registration certificate and cannot be unilaterally changed by the owner.

A coefficient above 1 increases the tax (penalising older and more polluting vehicles), while a coefficient below 1 reduces it (rewarding cleaner vehicles). As a result, a Euro 6 car of equal engine power may pay approximately 3.5 times less tax than a no-category vehicle.

Worked example — calculation for Sofia 2026

Case: Passenger car, manufactured in 2016, 100 kW engine power, Euro 5 category, owner with permanent address in Sofia Municipality.

1. Step 1 — per-kW rate: 100 kW falls in the "over 74 to 110 kW" band. Sofia's rate is 0.62 EUR/kW.
2. Step 2 — base tax: 100 × 0.62 = 62 EUR.
3. Step 3 — age coefficient: 2016 → 10 years in 2026 → coefficient 1.5.
4. Step 4 — property component: 62 × 1.5 = 93 EUR.
5. Step 5 — eco-coefficient: Euro 5 → 0.6 (Sofia ordinance).
6. Step 6 — annual tax: 93 × 0.6 = 55.80 EUR.

If paid in full by 30 April 2026, the statutory 5% discount applies, reducing the amount due to 53.01 EUR.

Exemptions and reliefs

Full exemption

• Electric vehicles — under Art. 58(4) ZMDT, electric passenger cars, tricycles and motorcycles are fully exempt from road vehicle tax. Hybrid vehicles do not fall within this exemption.
• Vehicles belonging to diplomatic and consular missions on a reciprocal basis.
• Special-purpose vehicles of the Ministry of Defence and the Ministry of the Interior.

Disability exemption

Under Art. 58(1)(4) ZMDT, individuals with 50% or more reduced work capacity (confirmed by a medical expert commission — ТЕЛК decision) are exempt for one vehicle with:

• engine power up to 117.64 kW (160 hp) inclusive; and
• engine displacement up to 2000 cc inclusive.

The exemption is not automatic — an application must be filed with the municipality of permanent address, together with a copy of the ТЕЛК expert decision and the vehicle registration certificate.

Early-payment discount

Under Art. 60(1) ZMDT, paying the full annual amount by 30 April entitles the taxpayer to a 5% discount on the tax due.

Hybrid vehicles

Hybrid vehicles (HEV, PHEV, MHEV) are not exempt from road vehicle tax. They typically benefit from the lowest eco-coefficient (0.40 – 0.60) by virtue of carrying a Euro 6 category, which materially reduces the final tax relative to an internal-combustion car in an older Euro bracket.

Deadlines and payment methods

Payment options

• Full payment by 30 April — a 5% discount applies.
• Two equal instalments: first by 30 June, second by 31 October (no discount).

Payment channels

• Online — through your municipality's portal or via pay.egov.bg;
• Through Easy Pay, Easy Credit or bank transfer to the municipality account;
• At the municipal administration's cash desk.

Change of ownership during the year

Under Art. 54(3) ZMDT, on transfer of ownership the tax is owed by the previous owner through the end of the month of transfer, and by the new owner from the following month. If the previous owner already paid the full annual amount, no automatic refund is made — the parties typically settle the proportional adjustment through the sale contract.

Late payment

Late payment triggers default interest (the Bulgarian National Bank base rate plus 10 percentage points). For persistently unpaid tax, the municipality may pursue enforcement under the Tax and Social Insurance Procedure Code (DOPK) — seizure of bank accounts, public auction of the vehicle.

Other vehicles — brief overview

Separate rules apply to vehicles other than passenger cars up to 3.5 t:

• Motorcycles and mopeds: rate based on engine displacement in cc; electric models — fully exempt;
• Trucks over 3.5 t: based on technically permissible maximum mass, with additional differentiation by axle configuration and suspension type;
• Buses: based on number of seats;
• Construction and agricultural machinery, vessels and aircraft: special provisions under Arts. 55–57 ZMDT.

For mixed fleets (e.g. corporate fleets combining passenger cars and trucks), we recommend a consolidated review by an accountant or tax adviser — municipal ordinances sometimes contain specific reliefs for company vehicles.

What changes in 2026

• Eurozone: all local tax and fee amounts are expressed in EUR (fixed rate 1 EUR = 1.95583 BGN). Municipal ordinances were converted automatically.
• Accelerated depreciation for electric vehicles (legal entities): corporate fleets of fully electric vehicles qualify for accelerated depreciation under the Corporate Income Tax Act — up to 50% per year (twice as fast as the standard passenger-car regime).
• Municipal incentives: some municipal councils are debating additional reductions for electric vehicles and low-emission cars (Euro 6d, hybrids). Always check your municipality's current ordinance.
• Euro 7 standard: under EU adoption process. Expected to extend environmental criteria for newly registered vehicles without retroactive effect on vehicles already registered.

Frequently asked questions