Nearly 1.9 million vehicle owners in Costa Rica must pay the annual marchamo tax before midnight Dec. 31 to legally operate their vehicles in 2026, according to the National Insurance Institute (INS).

As of this week, about 400,000 vehicle owners had not yet paid the mandatory tax, the INS reported.

The marchamo is a yearly payment required for all registered vehicles in Costa Rica. Comparable to vehicle registration or road-use taxes in the United States, it funds accident insurance, road maintenance and other transportation-related costs.

The tax is paid in advance for the upcoming year. Authorities warn that payments made after the deadline will be subject to late fees, and drivers caught without proof of payment may face a ₡65,000 fine (about $125) from traffic police.

Vehicle owners can check the amount owed through the  "Consulta Marchamo” section on the INS website. By entering a license plate number, users can view the vehicle’s appraised value and corresponding tax amount.

The Ministry of Finance determines vehicle valuations. Owners who believe their vehicle has been overvalued may request a reassessment by selecting the “Solicitud de Revisión” option online.

To dispute an assessment, owners must submit documentation such as the original purchase invoice, a sales contract, or at least three advertisements for comparable vehicles of the same model, year and style listed at lower prices than the government valuation.

Responses to review requests may take several weeks.

Traffic Police headquarters in San José and regional offices nationwide are also closed for in-person services during the holiday break.

Although traffic police facilities will be closed, officers will continue nationwide patrols as part of a broader holiday surveillance operation aimed at ensuring road safety.