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 and International Driving UK 2026: Foreign Licenc...

The UK attracts millions of international visitors each year, many of whom drive while here. Understanding how road tax applies to foreign-registered vehicles and international drivers is essential for visitors planning to drive on UK roads.

Foreign-Registered Vehicles in the UK

A vehicle registered in another country can be driven in the UK for up to 12 months without needing to be registered or taxed in the UK. After 12 months, the vehicle must be registered with DVLA and taxed at the UK rate. Visitors from EU countries with valid registration and insurance from their home country can drive freely. Visitors from non-EU countries should check insurance requirements carefully — a Green Card insurance document may be required to confirm coverage.

Road Tax for Foreign Vehicles

Foreign-registered vehicles visiting the UK do not need to pay UK road tax for the first 12 months. The vehicle should be taxed in its country of registration. However, if the vehicle stays in the UK beyond 12 months, it must be registered with DVLA, pay UK VED, and meet UK standards including IVA testing. The tax rate applied will be based on the vehicle's CO2 emissions under the current UK VED bands.

International Driving Permit Requirements

An International Driving Permit (IDP) is required alongside your national driving licence when driving in the UK if your licence is not in English or does not meet UK standards. IDPs are available from post offices and AA/RAC in the UK, or from motoring organisations in your home country. The IDP is a translation document, not a replacement licence — you must also carry your original driving licence. Road tax rules are the same whether you hold a UK or foreign licence. Related: Car Tax and International Driving UK 2026 | Car Tax and Foreign Cars UK 2026 | Car Tax and Foreign Cars UK 2026 | Car Tax Trade Plates UK 2026.

Hiring a Car as a Foreign Visitor

International visitors hiring a car in the UK do not need to arrange road tax — this is handled by the hire company. The vehicle will be properly taxed and insured for the hire period. International drivers should be aware that UK hire cars drive on the left side of the road — an adjustment for drivers accustomed to right-hand traffic. Road tax costs are included in the hire price; additional charges for congestion zone entry or parking may apply separately.

Bringing a Car to the UK as an Import

People moving to the UK who want to bring their car must register it with DVLA within 14 days and pay UK road tax. The vehicle will need an Individual Vehicle Approval (IVA) test to confirm it meets UK safety and environmental standards. Once registered, the vehicle is subject to standard UK VED bands. Some EU-registered vehicles may qualify for mutual recognition — a professional suitability assessment rather than a full IVA — which can reduce costs and complexity.

Official Resources: GOV.UK Check Vehicle Tax | GOV.UK Vehicle Tax | DVLA Online | MOT Check

Frequently Asked Questions

Q: How much is car tax (VED) in the UK 2026?
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 2026?
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 and International Driving UK 2026: Foreign Licence Tax Rules