Starting January 1, 2026, new tax rules will take effect in Kazakhstan, impacting the vast majority of vehicle owners. On July 18, 2025, the President signed the new Tax Code. Although the document has already been published, the actual changes will only come into force next year, DKNews.kz reports.
The headline change - the abolition of vehicle tax for millions of Kazakh citizens and a number of organizations. At the same time, a new “luxury tax” will be introduced for the premium vehicle segment.
Honor and full exemption from tax
One of the most notable updates - the expansion of the list of tax-exempt citizens. This now includes holders of all three degrees of the “Labor Glory” Order.
The award was established on March 17, 2015, on the initiative of Nursultan Nazarbayev. It is granted for many years of outstanding service in industries such as manufacturing, construction, agriculture, transport, education, healthcare, and other key sectors.
In terms of status, the order ranks below the “Qurmet” Order, but holding all three degrees is equivalent to being named Hero of Labor of Kazakhstan. Starting in 2026, these individuals will be able to drive without paying vehicle tax - both a symbolic recognition of their contributions and a tangible financial benefit.
Farmers among the beneficiaries
Farmers will also join the ranks of those receiving exemptions. This applies not only to tractors and harvesters, but also to pickup trucks used for farming operations, which will now be tax-free.
Who else will be exempt from tax
According to Article 563 of the new Tax Code, the following will be exempt from vehicle tax starting January 1, 2026:
- WWII veterans, those equated to them, and veterans of combat operations abroad, including Afghan war veterans
- Citizens awarded orders and medals of the USSR for labor and service in the home front, as well as those who worked at least 6 months during the war years
- Heroes of the Soviet Union and Heroes of Socialist Labor
- Holders of the titles “Halyk Kaharmany” and “Kazakhstan’s Enbek Eri”
- Holders of all three degrees of the “Labor Glory” Order
- Holders of the “Otan” Order
- Mothers awarded the “Altyn alqa” (7 or more children) or “Kumis alqa” (6 children) pendants, as well as the USSR title “Mother Heroine”
- Persons with disabilities (for one car or motorized wheelchair)
- State institutions and schools (for one car and one bus)
- Organizations of persons with disabilities
- Agricultural producers and farmers - within established limits for type and number of vehicles
An important note: if such a vehicle is rented out or transferred via power of attorney, the exemption will no longer apply.
Discounts for older cars
Owners of used vehicles will also benefit from the new rules. For the first time, the tax will be reduced depending on the age of the car:
- 10 to 20 years old - 30% reduction in tax
- Over 21 years old - 50% reduction
According to the National Bureau of Statistics, there are 4.4 million such vehicles in Kazakhstan - nearly 67% of the country’s total vehicle fleet. As of July 1, 2025, there were 6.46 million registered vehicles in the country, of which 86.6% are passenger cars, 9.6% trucks, 1.8% buses, and 2% motorcycles.
New “luxury tax”
At the same time, the government is introducing an excise tax on expensive vehicles. If you sell a car worth more than 18,000 MCI (in 2025 - 70.776 million tenge) that you have owned for less than a year, you will need to pay 10% of the transaction amount.
If you have owned the car for more than a year - no tax is charged. However, if sold within a year, you will also need to pay personal income tax (PIT) on the difference in price and declare it using form 270.00.
Why this is being done
The new Tax Code aims for balance: veterans, farmers, mothers of large families, and people with disabilities receive support, while owners of high-end cars take on an additional tax burden.
For agriculture, this means lower costs and an incentive to expand production. For owners of older cars - significant savings. For the premium market segment - a clear signal that expensive purchases will now be subject to additional taxation.
From 2026, Kazakhstan’s vehicle tax rules will become more flexible and targeted. Millions of citizens will be exempt from paying vehicle tax, while the budget will gain extra revenue from expensive cars.
