Understand Vehicle Road Tax Calculation for your Car/Bike

Confused About Road Tax Calculation? Use A Road Tax Calculator & Ease Stress

Ever wondered how the government affords to construct roads and initiate repairs when necessary? Well, the state and Centre do so with the money you pay as taxes.

More specifically, road taxes help the government ensure frequent repairs whenever the need arises.

The next time you see potholes being repaired or concrete being laid on roads, you know it is your contribution along with millions of others being put to use. Road tax is levied on every vehicle owner in India.

However, if you do not understand the calculation part of this taxation, specialised tools like the road tax calculator can help significantly.

Still, before understanding how this particular calculator works, here is a brief introduction about road tax in general.

Vehicle Road Tax: A brief Introduction

According to Section 39 of the Motor Vehicle Act, 1988, State governments levy road taxes, also known as Motor Vehicles Tax, on individuals who own a motorised vehicle in India.

Generally, this tax is paid when you purchase the vehicle in question. However, since the state governments are in charge of collecting such taxes, the actual value can differ based on the state where you buy the car or bike.

To acquire a better insight into how vehicle road tax is calculated, you must know the different factors that play a significant role.

Factors affecting Vehicle Road Tax Calculation

An individual can calculate road taxes on his/her vehicle purchase, by considering the following factors:

Engine Capacity of a Car/Bike - The cubic capacity of your chosen vehicle is considered when determining your road tax liabilities. For instance, a car with an engine capacity of 900cc will draw lower taxes when compared to another vehicle of 1300cc engine.
Age of The Vehicle - New car purchase would require you to service a relatively higher road tax when compared to buying older or used vehicles.
Weight of The Vehicle - The weight class of a concerned vehicle also plays a significant role in determining road taxes. Heavier models draw increased taxes from most states. Thus, if you pick an SUV, you will need to pay more as road taxes than if you choose a smaller option, such as a hatchback.
Seating Capacity - Bigger vehicles with more seats may lead you to pay increased taxes. So, whether an individual own a two wheeler, 3 wheeler or 4 wheeler, the road tax imposed is based on the seating capacity of your vehicle.
Fuel Type Used - Depending on whether your car runs on petroleum, diesel or CNG, car taxes can differ for you.
Usage Purpose - Taxes on commercial vehicles tend to be different from road tax charged on personal cars. Therefore, how you plan to use your bike or car also matters when determining the tax liabilities.]

Before using a road tax calculator, be sure to check your state’s taxation norms and rates. This should establish how much you would need to pay.

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Do you need to Pay Road Taxes after migrating to a different State?

Suppose you have borne road taxes at the time of registering a car in one state. However, after a few years, if you need to move to a different state, you would have to comply with the road tax laws of that state as well.

Therefore, be ready to pay taxes on the same car once again, when re-registering the vehicle.

However, the transfer process is not that simple. Other formalities are also involved with this procedure.

For example, before you can clear road taxes in your new state of residence, you would first need to cancel the vehicle’s existing registration in the other state. Also, you must acquire a no-objection certificate regarding registration transfer from the concerned RTO. This NOC certificate serves as the official report that no fines are pending and clarifies that the car was not involved in any stolen or accident scenario.

Owners would need to submit this NOC, along with the road taxes, to the new state’s RTO before he/she can avail the new registration number for their car or bike with the following document.

Form 20
Form 28
NOC from the previous RTO
Address Proof
Form 33
Attested copy of the PUC certificate
Passport size photograph
NOC from the bank if it was purchased for loan
PAN card or Form 61 or 60 (whichever is relevant).

An important point to remember here is that deregistration and payment of road tax for the second time is only necessary when owners are permanently shifting from one state to another.

If you are simply visiting another state for a few days, you would not need to bear such taxes again.

Example of Road Tax Calculation in a Few States

To simplify understanding of how road tax calculators work, here are three different states and their taxation norms, along with examples.

Delhi Road Tax - Delhi residents need to bear 4%, 7%, 10% of a four-wheeler’s cost as road taxes, for cars costing upto 6 lakhs and Rs. 10 lakh or above respectively. For instance, if your car’s cost is Rs.5 lakh, your road tax liability at the time of registration would be 4% of Rs.5 lakh or Rs.20000. Alternatively, 2 wheelers owners need to bear 4% of the vehicle cost priced up to Rs. 25000 and 6%, 8% of the vehicle cost for vehicles more than 25,000 respectively.
West Bengal Road Tax - In West Bengal, the taxation depends on the engine capacity of the car or bike and not its cost. For example, if you buy an 800cc 4-wheeler in this state, you would need to pay around Rs.10500 as taxes, along with Rs.4000 more if the concerned car is air-conditioned. However, if your car is equipped with a 1300cc engine, the liability would increase to around Rs.13900 plus Rs.7500 (on AC cars). On the other hand, if your two wheeler is equipped with 80 cc, you would need to pay Rs. 1560. Moreover, if your vehicle is equipped between 80 cc and 250 cc or above, you are liable to pay Rs. 3125, Rs. 4685, Rs. 6250, respectively.
Karnataka Road Tax - The Karnataka government also levies taxes on vehicle cost. For a new two-wheeler priced less than Rs. 50,000, the state charges 10% of the vehicle cost. Also, a new two wheeler costing between Rs.50000 and Rs.1 lakh, the state charges 12% of the cost as road taxes. For instance, if your bike is worth Rs.80000, the resulting road tax amount would be Rs.9600. Also, for the new electric two wheeler the road tax charges are nearly 4%, which is comparatively lower. However, if you own a four vehicle, the road tax charges ranges between 13% and 93% depending on the age and price.

Thus, you cannot find one road tax calculator that suits all in India, since rates and calculation methodologies differ significantly based on which state you buy the concerned car.

Look at the taxation rates for your state to assess how much you would need to pay.

FAQs about Vehicle Road Tax Calculation

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How can you pay road taxes online and offline?

To clear your road tax liabilities online, you would need to visit the official Ministry of Road Transport and Highways website, which is also known as the Parivahan web portal.

Online payment is possible using internet banking, debit cards and UPI. For offline payment, you would need to visit the local RTO and fill up the concerned form.

What is the deadline of paying road tax after moving to a new state?

You would need to service road taxes in your new state of residence within one month of the move. Failure to do so can lead to penalties or fines.

Can you claim refund of road tax after moving to a different state?

Individuals who are moving to a different state can apply for refund of road tax from the RTO in their present state of residence.

However, keep in mind that you would need to pay a lump-sum amount as road tax during registration of the car in the state where you are about to move.

How to pay road tax if an owner loses the original receipt for the vehicle in question?

If you happen to misplace your vehicle’s invoice, do not fret. Road tax payment is still possible with the help of additional documentation, such as the PUC, RC book and others.

Still, you should keep a close watch on the invoice as losing the same can lead to other complications during the vehicle’s lifespan.