How is road tax calculated in India?

Road tax in India is calculated based on the vehicle's ex-showroom price, engine capacity, and state-specific rates. Most states charge road tax as a percentage of the vehicle value (typically 2-10%) or at fixed rates based on vehicle category. Some states offer concessions for electric vehicles and hybrid cars. Road tax is a one-time payment for private vehicles in most states.

Is road tax the same across all states in India?

No, road tax varies significantly across Indian states. Each state has its own road tax structure with different rates and calculation methods. For example, Karnataka charges 2% for cars while Maharashtra charges up to 8%. Some states like Delhi have lower road tax rates. Always check your state's specific road tax rates before purchasing a vehicle.

How to pay road tax online?

Road tax can be paid online through the Parivahan portal, state transport department websites, or VAHAN portal. Select 'Tax Payment' service, enter vehicle registration number, calculate applicable tax, make online payment, and download the receipt. For interstate purchases, road tax is paid at the time of registration in the new state.

What happens if road tax is not paid?

Failure to pay road tax can result in penalties, vehicle seizure, and fines during traffic checks. Road tax default may also affect vehicle insurance validity and renewal. Some states impose ongoing annual tax for commercial vehicles. Always carry proof of road tax payment while driving.

Can road tax be claimed back when selling a vehicle?

In most Indian states, road tax is non-refundable upon vehicle sale. The tax is considered paid for the remaining validity period but cannot be claimed back. Some states allow refund of unused road tax period when transferring registration to another state. Check with your state's transport department for refund policies.

Car Tax Changes 2025-2026 UK: What Changed in the Latest ...

The UK tax year runs from April to April, and each year brings updates to VED rates, company car BIK thresholds and vehicle-related incentives. Here is a summary of the key changes for 2025-2026.

VED First-Year Rates: April 2025 Update

The VED first-year rate tables were updated for vehicles first registered from April 2025 onward. The standard annual rate of £190 for petrol and diesel cars and £10 for zero-emission vehicles remains unchanged. First-year rates have been broadly maintained at similar levels to 2024-25, with minor adjustments to some band thresholds. The premium rate supplement remains at £410 per year for vehicles with a list price over £40,000.

Company Car BIK Rates for 2025-26 and 2026-27

The BIK rate for zero-emission company cars increased from 2% to 2% for 2025-26 (the rate was previously 2% for 2023-24, rising to 5% for 2024-25 and was set to increase further — but the government confirmed 2% for 2025-26 and 5% for 2026-27 in previous announcements). PHEV BIK rates are based on their CO2, with qualifying criteria tightened to require more than 70 miles of electric-only range to access the lowest bands. Check HMRC's company car tax tables for the current BIK percentages.

Capital Allowances: 100% First-Year Allowance Extended

The 100% first-year allowance for low-emission vehicles (up to 50g/km CO2) has been extended and expanded. Businesses can still deduct the full purchase cost of qualifying vehicles from taxable profits in the year of purchase. The qualifying criteria include a minimum electric-only range of 70 miles for cars and specific weight thresholds for vans. This incentive makes low-emission vehicles particularly attractive for businesses purchasing company cars or commercial fleets. Related: Car Tax Changes 2025-2026 UK | Car Tax Changes 2025 UK | Big Car Tax Changes Coming to UK 2026 | Car Tax Changes 2026 UK.

Clean Air Zone Expansion

More UK cities have implemented or expanded Clean Air Zones during 2025. Sheffield's CAZ charging boundary expanded, while several smaller cities introduced their own schemes. Birmingham's Class D CAZ and London's expanded ULEZ remain the most significant charges for drivers. These changes affect the total cost of ownership for high-emission vehicles in affected areas, adding hundreds or thousands of pounds to annual running costs.

HGV Road User Levy

The HGV Road User Levy, which applies to goods vehicles over 12 tonnes, was reviewed in the 2025 budget. The levy has not increased but remains in place. For fleet operators managing heavy goods vehicles, the levy is a fixed annual cost based on axle count and emission class. Track the HGV Road User Levy rates on GOV.UK for the current year.

Frequently Asked Questions

Q: How much is car tax (VED) in the UK 2025?
Car tax rates in the UK depend on your vehicle's CO2 emissions and list price. Standard rates start from £190 per year for petrol and diesel cars, with zero-rated VED for EVs. First-year rates vary from £0 to £2,605 depending on emissions. Additional premiums apply for vehicles over £40,000.

Q: How do I check if my car is taxed online?
You can check your vehicle's tax status for free on the Gov.uk website at gov.uk/check-vehicle-tax. You'll need your vehicle's registration number (number plate). You can also check via the Motor Insurance Database to verify road tax and insurance status simultaneously.

Q: Can I get a refund on car tax if I sell my vehicle?
Yes — if you sell or scrap your vehicle, you can claim a refund on any full months of remaining road tax. Contact DVLA with the V11 reminder letter or apply online at gov.uk. Refunds are usually processed within 4-6 weeks.

Q: Is road tax refund available when transferring ownership?
No — road tax does not transfer with the vehicle. When you sell your car, the tax is automatically cancelled and any remaining months are refunded to you by DVLA. The new owner must tax the vehicle immediately. As a buyer, always verify the vehicle's tax status before purchasing.

Q: What is the luxury car tax threshold in the UK 2025?
The additional rate for vehicles over £40,000 (list price) adds £410 per year to standard VED rates for years 2-6 of registration. This surcharge brings the annual cost for high-emission vehicles over £40,000 to around £600-690 per year. Pure EVs under £40,000 pay zero VED.

Car Tax Changes 2025-2026 UK: What Changed in the Latest Tax Year