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 Refund UK 2026: How to Claim Your Money Back

April 13, 2026 in United Kingdom — If you have overpaid Vehicle Excise Duty or paid road tax on a vehicle you no longer own, you may be entitled to a car tax refund from the DVLA. This guide explains every scenario where you can claim a VED refund in the UK in 2026 and how to do it.

When Can You Claim a Car Tax Refund?

You can claim a car tax refund from DVLA in several circumstances:

Vehicle sold: If you sell a vehicle with unused months of road tax, you receive a refund automatically when you notify DVLA of the sale
Vehicle scrapped: If your car is scrapped through an authorised treatment facility, you receive a refund of unused tax
Vehicle written off: Insurers will notify DVLA; refund of unused tax goes to the policyholder
Incorrect rate paid: If you were charged a higher rate than your vehicle qualifies for, you can reclaim the difference
Duplicate payment: If road tax was paid twice for the same vehicle, a full refund of the duplicate is available
Vehicle exported: If you permanently export a vehicle from the UK, you can claim back unused months

How to Claim a Car Tax Refund from DVLA

For most scenarios, the car tax refund is processed automatically when you notify DVLA of a change of ownership, a scrapped vehicle, or an export. You do not need to submit a separate refund claim form in these cases — DVLA calculates and issues the refund automatically.

For incorrect rate claims, you need to contact DVLA directly with evidence — your V5C showing the correct CO2 figure, evidence of the rate you paid, and a letter explaining the discrepancy. Send this to DVLA, Swansea, SA99 1AR. Related: Car Tax Refund UK 2026 | Car Tax Overpayment and Refund UK 2026 | Car Tax Refund When Selling Your Car UK 2026 | Car Tax Refund When Selling Your Car UK 2026.

Car Tax Refund Timeline

DVLA typically processes car tax refunds within 4-6 weeks of receiving a valid notification. Refunds are issued by cheque or BACS transfer to the registered keeper's nominated bank account. Keep records of all correspondence and notification receipts.

How Car Tax Refunds Work When Selling a Car

When you sell a vehicle, notify DVLA immediately using the green slip from your V5C (notification of sale). The new keeper is responsible for taxing the vehicle. Any remaining road tax you paid is automatically calculated and refunded — you do not need to apply separately. The refund goes to the original registered keeper's address within 4-6 weeks.

Conclusion

Car tax refunds in the UK are straightforward — in most cases, DVLA processes them automatically. When selling a car, simply notify DVLA of the sale and your refund is issued automatically. For incorrect rate claims, write to DVLA with evidence. Visit GOV.UK notify DVLA of a scrapped vehicle for guidance.

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.