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 Temporary Vehicles UK 2026: Hire Cars, Loan V...

Temporary vehicles — hire cars, loan vehicles, and courtesy cars — operate under the same road tax rules as any other registered vehicle. Understanding who is responsible for tax and what happens to tax when a vehicle changes hands temporarily is important for anyone lending or borrowing a vehicle.

Hire Cars and Road Tax

Hire vehicles are the responsibility of the hire company. The vehicle should be taxed continuously by the rental company — they cannot legally rent an untaxed vehicle. When you hire a car, road tax is included in the rental cost. You do not need to separately tax the vehicle. If the hire company fails to tax the vehicle and you are stopped, the responsibility ultimately falls on the keeper — which is the hire company — but you may face inconvenience while the matter is resolved.

Borrowing a Friend or Family Vehicle

When you borrow a vehicle from a friend or family member, the vehicle must be taxed by its registered keeper. You cannot legally drive an untaxed vehicle, even if you plan to pay the tax yourself. The V5C keeper should either tax the vehicle online before you drive it, or you should ask the keeper to add you as a named driver on their policy and confirm the vehicle is taxed. Driving without tax is an offence — it does not matter that you are not the owner.

Courtesy Cars from Garages

Garages providing courtesy cars during repairs must ensure those vehicles are taxed. A courtesy car is typically registered to the garage and kept taxed by them. You should not need to arrange road tax for a courtesy car — it is the garage's responsibility. If a courtesy car is not taxed, the garage is liable for the offence, not you as the temporary driver, but you should not drive an obviously untaxed vehicle regardless. Related: Car Tax and Temporary Vehicles UK 2026 | Temporary Car Insurance Uk | Car Finance Uk | Car Sharing Uk.

Vehicle SORN During Repair

If a vehicle is off the road for repair, the keeper can declare a SORN for the repair period. During a SORN, the vehicle must be kept off public roads. If a courtesy car is provided, it should already be taxed. If the garage lends you your own vehicle back temporarily while parts arrive, a SORN would be cancelled — and the vehicle would need to be re-taxed before it can legally be driven again.

Transferring Tax Between Vehicles

Road tax cannot be transferred between vehicles. If you sell or scrap one vehicle and buy another, you cannot carry over the remaining tax period. The tax on the old vehicle ends when it is sold, transferred, or scrapped — and a refund may be claimed for any full months remaining. The new vehicle must be taxed separately. Some dealers offer to handle the tax transfer, but the legal liability remains with the keeper.

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 Temporary Vehicles UK 2026: Hire Cars, Loan Vehicles and Short-Term Use