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Road Tax in India
Road Tax is a compulsory tax levied on every vehicle driven in India. Be it cars, trucks, bikes, or any other vehicle, every new vehicle on the public road carries this tax. The State Government levies the road tax to maintain road infrastructure. This tax collected may also be used to expand the network of roadways and highways. Read further to learn more about road tax in India, its calculation, how to pay road tax online and refund on road tax.
How is Road Tax Calculated?
Every individual in India who owns a vehicle is required to pay road tax. Whether you own a private or commercial vehicle, it is mandatory as per the motor laws to pay road tax. This tax is calculated on the vehicle's ex-showroom price.
Based on three factors, each State levies their own road tax. These factors include:
- Vehicle's age
- The vehicle's weight and
- Engine capacity of the vehicle
Usually, a vehicle owner pays this tax at the time of purchase. When the dealer sells you a vehicle, he/she adds this tax to the ex-showroom price only if they are registering the vehicle. However, if you are getting your vehicle registered, you can pay the road tax as per your State at the RTO itself.
Moreover, if you transfer your vehicle from one State to another, for instance, from Delhi to Mumbai, you will be required to pay road tax in another state as well.
Steps to Pay Road Tax Online
The road tax in a state can be paid offline and online. Below, we have explained both ways:
Offline Payment
The Government portal Parivahan Sewa allows you to know vehicle details or details of vehicle owners in Delhi. Here are the steps to do so:
You can pay road tax offline at the time of registering your new vehicle at the RTO. This can also be done by your dealer, if he is registering your vehicle on your behalf.
Moreover, if you have already registered your vehicle and have not paid due tax, you can visit the RTO physically and pay the applicable tax.
Online Payment
If you don't want to pay road tax by visiting the RTO, you can pay it online through the Parivahan Sewa portal. This portal lets you pay road tax online in your State. Follow these steps to pay road tax online:
Visit the Parivahan Sewa official portal
From the homepage, click on the "Online Services" menu
From this dropdown, select "Vehicle Related Services" option
Select the State from where you have your vehicle registered
Now select RTO
Click on "Proceed"
From the list of services, click on "Pay Road Tax'
Now enter your vehicle registration number and chassis number (last 5 characters)
Click on "Verify details" and pay your tax.
*Note: The service for road tax online payment mentioned above is only available for commercial vehicles.
Moreover, you can also visit the particular state transport website to pay road tax online. Almost every State has their online portal for tax payment, and you can opt for road tax online payment.
Penalty for Late Payment of Road Tax
As per the Motor Vehicle Act of 1988, paying road tax on time is mandatory. If there is a delay in the payment, your State will levy a penalty, which you will have to pay along with the arrears road tax. Usually, the State gives a 15-day grace period to pay the road tax.
The penalty can range between 50% to 100% of the arrears road tax if not paid within the stipulated time.
So make sure to pay your vehicle road tax on time, or you will pay a heavy penalty from your pocket.
Refund on Road Tax
A refund on road tax can be taken under two scenarios.
Firstly, when your vehicle has become beyond repair, i.e., it has sustained a total loss. In this case, you can have the tax for the remaining years refunded from your State RTO. For instance, you have paid a one-time tax, say for 15 years, to the State, but your vehicle suffers a total loss and becomes irreparable in 10 years.
In such a scenario, you can apply for a road tax refund for the remaining 5 years in the RTO where your vehicle has been registered.
The second situation for getting a tax refund is when you move to a new state. In this case, you must re-register your new vehicle under the RTO of the new State. For this purpose, you will require an NOC from your old RTO.
So, you can apply for a tax refund from the original RTO for the remaining amount of tax. And pay road tax again in the new State as per their slab.
Documents to Apply Refund on Road Tax
To apply for the refund of road tax from your current RTO, you will have to visit the RTO along with the following documents:
1. A request letter for the refund of tax
2. Chassis number impression
3. Copy of vehicle insurance certificate
4. Copy of new and original RC
5. NOC from your previous RTO
6. Copy of road tax receipt that was paid in the new State
7. Copy of the old road tax receipt
8. Copy of current address proof
9. Bank account details of the vehicle owner, along with the address to send the cheque.
Road Tax in Major Indian States
Below, we have mentioned the road tax of some major states of India. Take a look:
Road Tax in Delhi:
| Ex-Showroom Price | Road Tax in Delhi |
| Upto Rs. 6 Lakh | Petrol: 4%, Diesel: 5% |
| 6 Lakh to 10 Lakh | Petrol: 7%, Diesel: 8.75% |
| Above Rs. 10 Lakh | Petrol: 10%, Diesel: 12.5% |
| Electric Car | Zero Road Tax |
| Two-wheelers with < 50 cc | Rs. 650 |
| Two-wheelers > 50 cc | Rs. 1,220 |
Road Tax in Maharashtra:
| Car’s Price | Road Tax on New Car Registration |
| Price < 10 Lakh | CNG: 7% Petrol: 11% Diesel: 13% |
| 10 Lakh - 20 Lakh | Petrol: 12% Diesel: 14% |
| Above 20 Lakh | Petrol: 13% Diesel: 14% |
| Two-wheelers | Road Tax |
| Upto 99 cc | 10% |
| 100 cc to 299 cc | 11% |
Road Tax in Uttar Pradesh
| Vehicle Type | Amount (in Rs.) per Year |
| Two-wheelers between Rs. 20,000 to Rs. 60,000 |
4% |
| Two-wheelers between Rs. 60,000 to Rs. 2 lakhs |
6% |
| Cars Less than Rs. 6 Lakh | 3% of the value |
| Cars Less than Rs. 6 Lakh | 3% of the value |
| Cars Between Rs. 6 and 10 Lakh |
6% of the value |
| Cars Between Rs. 10 and 20 Lakh |
8% of the value |
| Cars Exceeds Rs. 20 Lakh | 9% of the value |
Road Tax in Karnataka
| Vehicle Cost | Road Tax |
| New two-wheelers less than Rs. 50,000 |
10% |
| New two-wheelers more than Rs. 50,000 |
12% |
| Four-wheelers between Rs. 5 to Rs. 10 lakhs |
14% |
| Four-wheelers between Rs. 10 to Rs. 20 lakhs |
17% |
| Four-wheelers more than Rs. 20 lakhs |
18% |
FAQs on Road Tax in India
Every State has a different road tax for various types of vehicles. This is decided on the basis of vehicle's age, ex-showroom price, weight and engine cc.
Yes, it is mandatory for every Indian who owns a vehicle to pay road tax to the State in which they have registered their vehicle.
Yes, the Motor Vehicle Act of 1988, mandates it for every new vehicle owner to pay road tax in their State.
No. Road tax refers to the tax paid to the State for every new vehicle plying on public roads. On the other hand, GST or Goods and Services Tax is a tax that's levied at the rate of 18% on all types of vehicles.
Road Tax is applied for every new vehicle being registered in a particular state. It is a mandatory motor tax under the State Government mandates.
On the other hand, a toll tax is levied when crossing interstate highways and expressways that have specific tolls. This tax is under the National Highway Authority of India.
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