Every vehicle owner has to pay a certain tax before he can use any public road, this is called the road tax. In India, both State as well as Central Governments impose road tax. Generally, this is a one-time tax, but in some cases it is to be paid annually too. The Regional Transport Office in the local area collects the road tax, which is calculated on the basis of the engine and seating capacity of the vehicle, its price as well as the unladen weight. In this article, we will focus on the Road Tax in Tamil Nadu.
A motor insurance policy is mandatory for every vehicle registered at Tamil Nadu RTO as per The Motor Vehicle Act, 1988.
In the state of Tamil Nadu, it is a priority to ensure road safety. The previous as well as current governments have always taken measures to keep the number of accidents to a minimum. Apart from wearing a helmet and a seatbelt, government issued fitness certificates are also to be carried by the vehicle rider/ driver at all times. The government also makes sure that the vehicles that are plying on the roads have the mandatory registration certificates, so that there can be some uniformity in the system of transport in the state. Confronting with the Tamil Nadu Motor Vehicle Taxation Act of 1974, the road tax payment is levied in the state.
As the payment of tax is in accordance with the state’s Motor Vehicle Taxation Act, it is calculated as per the given provisions. According to the Act, every automobile in Tamil Nadu will be charged with the road tax, which is fixed on the basis of the type of automobile.
For the Two-Wheelers that were registered after 1989, the tax charged is as follows:
| Period | Motorcycles lesser than 50 cc | Motorcycles of 50 to 75 cc | Motorcycles of 75 to 170 cc | Motorcycles above 175 cc and tricycles |
|---|---|---|---|---|
| At time of registration | 1000 | 1500 | 2500 | 3000 |
| Less than 1 year old | 945 | 1260 | 1870 | 2240 |
| 1 to 2 years | 880 | 1210 | 1790 | 2150 |
| 2 to 3 years | 815 | 1150 | 1700 | 2040 |
| 3 to 4 years | 750 | 1080 | 1600 | 1920 |
| 4 to 5 years | 675 | 1010 | 1500 | 1800 |
| 5 to 6 years | 595 | 940 | 1390 | 1670 |
| 6 to 7 years | 510 | 860 | 1280 | 1530 |
| 7 to 8 years | 420 | 780 | 1150 | 1380 |
| 8 to 9 years | 325 | 690 | 1020 | 1220 |
| 9 to 10 years | 225 | 590 | 880 | 1050 |
| More than 10 years old | 115 | 490 | 720 | 870 |
For Four-Wheelers, the road tax charged on Jeeps, Cars and Omni Buses is as follows:
| Classification | Imported Vehicles | Indian Made vehicles owned by individuals | Indian Made vehicles owned by others |
|---|---|---|---|
| Not more than 700 Kgs of unladen weight | 1800 | 600 | 1200 |
| From 700 to 1500 Kgs of unladen weight | 2350 | 800 | 1600 |
| From 1500 to 2000 Kgs of unladen weight | 2700 | 1000 | 2000 |
| From 2000 to 3000 Kgs of unladen weight | 2900 | 1100 | 2200 |
| More than 3000 Kgs unladen weight | 3300 | 1250 | 2500 |
Tax Rates for Goods Carriages and Trailers
| Transport Vehicles (in weight laden) | Quarterly Tax (in Rupees) |
|---|---|
| Goods Carriages not beyond 3000 Kgs | 600 |
| Goods Carriages 3000-5500 kgs | 950 |
| Goods Carriages 5500 - 9000 kgs | 1500 |
| Goods Carriages 9000 -12000 kgs | 1900 |
| Goods Carriages 12000-13000 kgs | 2100 |
| Goods Carriages13000 -15000 kgs | 2500 |
| Goods Carriages above 15000 kgs | 2500 Plus 75/- for every 250 kgs or more |
| Multi Axle Vehicle | Rs.2300/-+Rs.50/- for every 250 Kgs or more |
| Trailer 3000-5500Kgs | 400 |
| Trailer 5500-9000Kgs | 700 |
| Trailer 9000-12000Kgs | 810 |
| Trailer 12000-13000Kgs | 1010 |
| Trailer 13000-15000Kgs | 1220 |
| Trailer more than 15000 Kgs in weight laden | 1220,(Plus Rs.50 for every 250Kgs) |
After 2008, vehicles have been given the facility to pay a lifetime road tax. The non-transport motorbikes lifetime road tax is 8% of the cost of the bike. For four-wheelers and other non-commercial vehicles, the road tax is fixed at 10% of the vehicle’s cost if the price of the vehicle is less than INR 10 lakhs. In case the vehicle costs more than INR 10 lakhs, the tax to be paid is 15% of its value.
For battery-operated non-transport four wheeler vehicles, the lifetime road tax is 5% of the vehicle’s cost. And in case the cost of the battery operated non-transport four wheeler vehicle is more than INR 10 lakhs, then the tax to be paid is 7.5% of the value of the vehicle.
The road tax in Tamil Nadu can be paid at any of the Regional Transport Offices, either in cash or through a demand draft. The tax payment can also be made online, also by the transport vehicles. They no longer need to make the payment compulsorily at the regional transport offices.
The commercial vehicles that enter Tamil Nadu have to make the payment of the ‘other state vehicle tax’. This tax can be paid at the toll tax check posts located on site borders. But lately, the highly congested and long queues of the commercial vehicles at the toll plazas, has led to the establishment of a successful online system of paying the Road tax in Tamil Nadu. The easy and step-by-step procedure makes it easy and convenient to pay the road tax through a secure website.
What is the need for road tax?
The money generated with the collection of road tax is used by the government not only to construct and maintain roads. All vehicles emit greenhouse gases which add to the air pollution, apart from road construction, this money is also used to plant more trees and work towards carbon reductions.
Who has to pay the road tax?
Any individual who is buying a new vehicle has to pay a road tax to the government. The tax amount is decided on the basis of the price of the vehicle. The other factors considered while calculating the road tax are- vehicle’s seating capacity, engine capacity, how old the vehicle is and the total weight of the vehicle.
Do I need to pay road tax even if I buy a pre-owned vehicle?
If the previous car owner has paid a one-time road tax, you need not pay the tax again, but if the tax was being paid annually or has been paid for a specific time, then you would have to pay the tax for the remaining period or till the time you are using the vehicle.
If I get transferred out of Tamil Nadu, will I pay tax in the other state too?
Yes, you need to. You need to obtain a NOC from the RTO where your vehicle was registered and re-register it in the new state. As road taxes are different in different states, you may either get a refund or may have to pay more.
What is the difference between road tax and toll tax?
The road tax is paid before a vehicle is to be driven on the public road, and therefore, it is paid at the time of the purchase itself. It is generally a one-time payment unlike the toll tax which is to be paid every time a vehicle goes to the road or bridge which comes under the toll. Certain bridges and roads levy a tax as the government wishes to recover the cost of construction and maintenance.
For how many years is road tax valid?
In case of private vehicles up to INR 10 lakh, a one-time tax of 6% of the vehicle cost is payable, if the vehicle costs more than that then the road tax is 8% of the cost of the vehicle. Else, an annual rate of tax can also be levied on old vehicles. Similarly, transport vehicles can pay the road tax on a one time basis or can pay it quarterly or annually. Public Service vehicles have the option of paying road tax monthly, quarterly, annually or a one-time tax.
