Road tax in India – Everything you need to know

Vehicle owners rely on the government to deliver top-notch roads, infrastructure, and parking amenities, among other essentials. However, such services come at a cost, which the government covers through diverse taxes. While income tax and Goods and Services Tax (GST) are commonly discussed, road tax often flies under the radar. Let’s better understand vahan or road tax in India.

What is road tax in India?

State governments levy a road tax on individuals owning vehicles intended for use on public roads. The amount goes towards upkeep and maintenance. The state governments collect the tax since they maintain all roads except national highways. These taxes are the foremost revenue source for road infrastructure development and repairs.

Road tax rules in India

Every vehicle owner in India must pay road tax to the state government. The tax amount is calculated based on the vehicle’s size, age, and engine capacity. Each state outlines different tax brackets based on the vehicle parameters mentioned.

When is road tax in India for cars collected?

The government collects road tax while registering a new vehicle at the Regional Transport Office (RTO). Those purchasing new vehicles can ask the dealer to complete the road tax payment with the registration. The dealer will then share the payment receipt with you. Individuals who want to register their vehicles can visit the RTO with the relevant paperwork. After paying the tax, the vehicle registration application can proceed. Some states accept a one-time lifetime tax payment, while others may allow an annual payment option.

State-wise road tax in India

Every state government decides on the road tax amount at their discretion. Let’s explore the tax rates in Delhi, Maharashtra, Karnataka, Uttar Pradesh, and Gujarat.

Road Tax Rates in Delhi

Vehicle	Annual Road Tax
Two-wheelers with an engine capacity of less than 50 cc	Rs. 650
Two-wheelers with an engine capacity of more than 50 cc	Rs. 1,220
Four-wheelers that weigh less than 1,000 kilograms	Rs. 3,815
Four-wheelers that weigh between 1,000 and 1,500 kilograms	Rs. 4,880
Commercial vehicles that can carry only two passengers	Rs. 305
Commercial vehicles that can carry over 18 passengers	Rs. 1,915 + Rs. 280 for every additional passenger after 18

Road Tax Rates in Maharashtra

Vehicle	Road Tax
Two-wheelers with an engine capacity of less than 99 cc	10% subject to a minimum of Rs. 1,500
Two-wheelers with an engine capacity between 99 and 299	11% subject to a minimum of Rs. 1,500
Four-wheeler LPG or CNG vehicles that cost less than Rs. 10 lakhs	7%
Four-wheeler petrol vehicles that cost between Rs. 10 lakhs to Rs. 20 lakhs	8%
Four-wheeler diesel vehicles that cost between Rs. 10 lakhs to Rs. 20 lakhs	14%

Road Tax Rates in Karnataka

Vehicle	Road Tax
New two-wheelers that cost less than Rs. 50,000	10%
New two-wheelers that cost more than Rs. 50,000	12%
Four-wheelers that cost between Rs. 5 to Rs. 10 lakhs	14%
Four-wheelers that cost between Rs. 10 to Rs. 20 lakhs	17%
Four-wheelers that cost more than Rs. 20 lakhs	18%

Road Tax Rates in Uttar Pradesh

Vehicle	Road Tax
Two-wheelers that cost between Rs. 20,000 to Rs. 60,000	4%
Two-wheelers that cost between Rs. 60,000 to Rs. 2 lakhs	6%
Four-wheelers that cost between Rs. 6 to Rs. 10 lakhs	6%
Four-wheelers that cost between Rs. 10 to Rs. 20 lakhs	8%
Four-wheelers that cost more than Rs. 20 lakhs	9%

Road Tax Rates in Gujarat

Vehicle	Road Tax
New two-wheelers	6%
Four-wheelers	6%
Commercial vehicles with a Gross Vehicle Weight (GVW) up to 7,500 kilograms	6%
Commercial vehicles with a GVW between 7,501 to 12,000 kilograms	8%
Commercial vehicles with a GVW of over 12,001 kilograms	12%

The above list of road taxes in India demonstrates how each state defines their tax rates. Vehicle owners do not have to pay additional GST on road tax in India.

How to pay road tax in India

Individuals can choose to pay their road tax online or offline.

a. How to pay road tax offline in India

Vehicle owners can visit their RTO during registration to pay the required tax. Most often, the dealership takes care of the process.

b. How to pay road tax online in India

Alternatively, they can visit the Parivahan website to pay the amount online. On visiting the Parivahan website, individuals can navigate to Online Services and select the Vehicles Related Services option. After specifying the state and RTO, they must provide the vehicle’s registration number to verify their identity and complete the payment.

As a responsible citizen, you must pay your taxes, including the required road tax, to enjoy the infrastructure provided by the government. Once you purchase a vehicle, you must also purchase insurance to meet your legal liabilities and protect your wallet. Comprehensive two-wheeler and four-wheeler policies help with the cost of repairs after an accident. Visit the Zuno website today to find the ideal plan for your new vehicle and enjoy carefree drives every time.

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Disclaimer

Zuno General Insurance Limited does not assume any liability for actions taken based on the information contained in this blog. All insurance products and services are subject to the terms and conditions of the specific policy. Coverage and pricing may vary based on individual circumstances and eligibility.