Independent guide by India Customer Care · Not the Parivahan government website · We never ask for your licence number, vehicle number, Aadhaar or OTP. Official services: parivahan.gov.in
Road Tax in India: State Rates, Refund and No Transfer Rule
Road tax (motor vehicle tax) is a tax your state charges for using a vehicle on its roads. It is not a central tax, so rates differ from state to state. Most private cars and two-wheelers pay a one-time tax at registration, usually a percentage of the vehicle's price; taxis, buses and trucks usually pay yearly or quarterly. You can't move road tax from an old vehicle to a new one. Instead, some states refund part of it when the vehicle leaves the state, and scrapping the old vehicle gets you up to 25% off the new one's tax.
- Set by
- Your state
- Private vehicle
- Usually one-time, % of price
- Commercial
- Usually yearly or quarterly
- Transfer to new vehicle
- Not allowed
- Scrapping discount
- Up to 25% (15% transport)
On this page
What is road tax, and who sets it?
Road tax is the motor vehicle tax that a state charges on vehicles registered or used in it. Each state has its own law, for example the Telangana Motor Vehicles Taxation Act, 1963, the Karnataka Motor Vehicles Taxation Act, 1957 and the Rajasthan Motor Vehicles Taxation Rules, 1951. The state transport department levies and collects it.
- It is separate from the registration fee, which is a small central fee (₹600 for a car). Road tax is usually far larger. See new vehicle registration.
- It is worked out on the vehicle's cost (Haryana uses the ex-showroom price for a new vehicle), engine size, seats or weight, depending on the state and vehicle type.
- Some states add a cess or surcharge on top, so the amount on your receipt can be higher than the base rate.
The one central exception is the BH (Bharat) series: for eligible owners, tax is paid for two years at a time at a rate set in the central rules.
Is road tax one-time (lifetime) or periodic?
Private car or two-wheeler
- Most states charge a one-time tax when the vehicle is first registered. The Comptroller and Auditor General describes it as tax "for the life time of that vehicle".
- Some states fix the period: Kerala and Assam charge one-time tax for 15 years.
- Assam lets a car owner pay the one-time tax in one or two instalments.
Taxi, bus, truck or other transport vehicle
- Usually periodic tax. Bihar's Act requires annual tax from commercial vehicle owners.
- Kerala collects tax yearly if it is ₹1,500 or less, and otherwise every quarter.
- Delhi lets autos, taxis and other commercial vehicles pay half-yearly, quarterly or monthly.
- Late payment adds a penalty: in Kerala, an extra 10% to 50% depending on the delay. For permits and other taxes on commercial vehicles, see commercial vehicle permits.
What are the road tax rates in each state?
Only rows we read on the state's own transport department website are listed. Rates change by notification, and some state pages don't show the date they apply from, so check your state's page or the tax shown on VAHAN before you pay. States not listed: ask your RTO or dealer for the tax receipt amount.
One-time tax on a private car
| State | Rate (share of the vehicle's cost) | Note |
|---|---|---|
| Rajasthan | Petrol: 6% up to 800 cc, 9% for 800–1,200 cc, 10% above 1,200 cc. Diesel: 8%, 11%, 12% | Four-wheelers with up to 10 seats; page updated 26 Oct 2026 |
| Haryana | 5% up to ₹6 lakh; 8% for ₹6–20 lakh; 10% above ₹20 lakh | Ex-showroom price; page gives rates from 1 April 2017 |
| Assam | 5% up to ₹4 lakh; 6% to ₹6 lakh; 7% to ₹12 lakh; 7.5% to ₹15 lakh; 9% to ₹20 lakh; 12% to ₹30 lakh; 14% above ₹30 lakh | For 15 years, in one or two instalments |
One-time tax on a private two-wheeler
| State | Rate | Note |
|---|---|---|
| Rajasthan | 8% up to 200 cc; 13% for 200–500 cc; 15% above 500 cc | Share of cost; notifications of 2019 and 2020 |
| Haryana | 4% up to ₹75,000; 6% for ₹75,000–2 lakh; 8% above ₹2 lakh | Share of ex-showroom price |
| Assam | ₹2,600 to ₹6,500 | Fixed amount by unladen weight |
Electric vehicles: the state pages above don't list separate rates for electric vehicles. Check your state's current EV policy or ask the RTO. See also EV subsidies.
How do you pay road tax?
New private vehicle
The dealer collects the one-time tax with the registration fee and pays it on VAHAN when registering the vehicle. Ask for the VAHAN tax receipt and check the amount against your state's rate.
Periodic tax on a transport vehicle
Pay each period online through your state's Pay MV Tax service on VAHAN (as Uttarakhand's transport site links it) or at the RTO. Keep the receipt: you need it for the permit and the fitness test.
- Open VAHAN online services and choose the state where the vehicle is registered
- Choose the tax payment service for your registration number
- Check the tax due for the period, with any late penalty
- Pay online
- Download and keep the tax receipt
Open VAHAN (official) vahan.parivahan.gov.in
Can you transfer road tax to a new vehicle?
No. Road tax is paid for one vehicle. None of the state tax laws or central rules we read lets you carry the tax already paid on one vehicle over to another, whether you sell it, replace it or buy a second one. Two legal routes can get you money back or a lower bill:
You are taking the vehicle to another state
- The new state charges its own tax when you re-register there. You must re-register once the vehicle has been kept there for more than 12 months; see moving a vehicle to another state.
- Your old state may refund part of the one-time tax. How refunds work.
- Moving often? If you're eligible, the BH series avoids re-registering. The rules don't mention a refund of state tax already paid when you convert.
You are scrapping the old vehicle
- Scrap it at a registered vehicle scrapping facility (RVSF) and get a Certificate of Deposit.
- Register the new vehicle against that certificate for up to 25% off road tax (15% for a transport vehicle). Details.
- Karnataka's Act also allows a refund when the registration is cancelled because the vehicle is scrapped.
You are selling the old vehicle in the same state
- The tax stays with the vehicle and passes to the buyer with the RC. In the three state laws in the refund table, a sale within the same state isn't a ground for a refund, and nothing gives you credit for your next vehicle.
- Factor the remaining tax value into the price, and complete the ownership transfer.
Can you get a road tax refund when you leave a state?
It depends on your state's law. Three examples from the state texts:
| State | When a refund is allowed | How much |
|---|---|---|
| Rajasthan (rule 26-A) | The vehicle is taken out of the state, completely destroyed or converted to a transport vehicle within 5 years of registration. Apply within 3 months in Form M.T.F.F. to the taxation officer who collected the tax | The one-time tax minus 10% for each financial year or part of a year |
| Karnataka (section 7) | The vehicle moves to another state on a sale or change of address, or the registration is cancelled because it is scrapped. Proof of the sale or new address is needed, and the lifetime tax must have been paid in full | At the rates in the Act's schedule |
| Telangana (section 4) | Lump-sum tax: the vehicle moves to another state on a sale or change of address. Periodic tax: the vehicle wasn't used for at least a month of the paid period | At rates the state notifies |
- Get the NOC from your old RTO and clear any unpaid toll on the vehicle
- Re-register the vehicle and pay tax in the new state
- Apply to the taxation officer in the old state with proof of the move, the tax receipt and the RC details
- Within the state's time limit and conditions?No: the refund is refused; the tax isn't recovered
- The refund is paid at the state's rate
Keep these for a refund claim
- The original road tax receipt from the old state
- The NOC (Form 28) from the old RTO
- Proof of the sale or the change of address, such as the new registration in the other state
- The receipt for tax paid in the new state
Apply soon after you move: Rajasthan, for example, gives only 3 months. If your state's site doesn't explain the refund, ask the RTO for the rule and the form.
How much does scrapping save on road tax?
Rule 51A of the Central Motor Vehicles Rules (G.S.R. 720(E), from 1 April 2022) gives a motor vehicle tax concession to a new vehicle registered against a Certificate of Deposit from scrapping an old one:
| New vehicle | Concession | For up to |
|---|---|---|
| Non-transport (private) | Up to 25% | 15 years from first registration |
| Transport | Up to 15% | 8 years from first registration |
The fee for the new vehicle's registration certificate is also waived. For the scrapping steps, see vehicle scrapping.
- Take the old vehicle to a registered vehicle scrapping facility
- The facility scraps it and issues a Certificate of Deposit
- Give the Certificate of Deposit to the dealer when you buy the new vehicle
- The new vehicle is registered with the road tax concession and no registration certificate fee
What can go wrong, and how do you fix it?
| Your situation | What it usually means | What to do |
|---|---|---|
| The dealer's tax amount looks too high | A cess, surcharge or a different price band applies | Ask for the VAHAN tax receipt and compare it with your state's page. |
| Asked to pay tax again after moving state | The new state charges its own tax on re-registration | Pay it, then claim a refund in the old state if its law allows. |
| Refund refused | Time limit passed, the vehicle was too old, or tax was paid in part | Ask the taxation officer for the written reason; refunds follow state rules strictly. |
| NOC held up | Unpaid toll (user fee) or pending tax or challans | Clear the dues; see FASTag and challans. |
| No scrapping discount on the new vehicle | The Certificate of Deposit wasn't given at registration | Give it to the dealer before the vehicle is registered. |
| Penalty on a commercial vehicle's tax | The quarterly or yearly payment was late | Pay the tax and penalty on VAHAN before the permit or fitness renewal. |
Frequently asked questions
Who decides road tax?
Your state, under its motor vehicles taxation law. That is why the same car costs different amounts in different states.
Is road tax paid once or every year?
For most private vehicles, once at registration. Commercial vehicles usually pay yearly or quarterly.
Can I transfer road tax to my new car?
No. There is no transfer. You may get a refund when the old vehicle leaves the state, if your state allows it, or up to 25% off the new car's tax by scrapping the old one.
Do I get road tax back when I sell my car?
Not for a sale within the same state, under the state laws we read. The tax goes with the vehicle to the buyer.
I'm moving to another state. Do I pay road tax twice?
The new state charges its own tax when you re-register. Your old state may refund part of the tax you paid; Rajasthan, for example, refunds only within 5 years of registration and if you apply within 3 months.
Is road tax included in the on-road price?
Yes. The dealer collects it with the registration fee and pays it on VAHAN.
What about the BH series?
BH-series vehicles pay tax for two years at a time instead of a one-time state tax. See BH registration.
Do electric vehicles pay road tax?
It depends on your state's rules at the time you buy. Check your state transport department's site or ask the RTO.
Sources
- Transport Department, Rajasthan – vehicles paying one-time tax and Rajasthan Motor Vehicles Taxation Rules, 1951 (rule 26-A) (accessed 26 Oct 2026)
- Transport Department, Haryana – non-transport vehicles one-time tax (accessed 26 Oct 2026)
- Transport Commissionerate, Assam – taxation structure (accessed 26 Oct 2026)
- Motor Vehicles Department, Kerala – tax (accessed 26 Oct 2026)
- Transport Department, Delhi – tax payment on a quarterly or half-yearly basis (accessed 26 Oct 2026)
- Telangana Motor Vehicles Taxation Act, 1963 (section 4) (accessed 26 Oct 2026)
- Karnataka Motor Vehicles Taxation Act, 1957 (India Code), section 7 (accessed 26 Oct 2026)
- Comptroller and Auditor General – taxes on vehicles (Bihar) (accessed 26 Oct 2026)
- G.S.R. 720(E), 5 Oct 2021 – rule 51A, tax concession against a Certificate of Deposit (PIB) and India in Business – scrapping incentives, registration fee waiver (accessed 26 Oct 2026)
- Transport Department, Uttarakhand – fees structure and Pay MV Tax link (accessed 26 Oct 2026)
- PIB – unpaid user fee and NOC (20 Jan 2026) (accessed 26 Oct 2026)
Page history: 26 Oct 2026: first published.