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 Checklist When Buying Used UK 2026: Full Pre-Purc...

Buying a used car means inheriting whatever road tax situation the previous owner left behind — and it is your responsibility to ensure everything is in order. Here is the complete car tax checklist for used car buyers in the UK.

Step 1: Check VED Status Online

Before you buy, check the vehicle's tax status at GOV.UK's free vehicle tax check service. This tells you whether the car is currently taxed, when the tax expires, and whether a SORN is in place. An untaxed car is not necessarily a problem — you will need to tax it immediately — but it is better to know before you hand over money. Remember: you cannot drive an untaxed car on the road, even to get it home.

Step 2: Verify the V5C Matches the Car

The V5C registration certificate should match the vehicle physically in front of you. Check that the VIN on the V5C matches the VIN plate on the car, the engine number is correct, and the vehicle's make, model and colour match the document. If the seller cannot provide the V5C, walk away — or at least insist on seeing it before completing the purchase. Never buy a car without the V5C unless you are very confident in the seller's identity and the vehicle's provenance.

Step 3: Check CO2 and Fuel Type on the V5C

The V5C shows the official CO2 emissions figure and fuel type — the two key inputs for calculating your annual VED. If the CO2 figure seems wrong for the vehicle — for example a high-performance car showing a very low CO2 figure — ask the seller for clarification or get the vehicle independently inspected. Incorrect CO2 on the V5C means you could be paying the wrong VED rate, potentially more than you should. Related: Car Tax Checklist When Buying Used UK 2026 | UK Best Used Cars 2026 | New Vs Used Car Uk | 7 Things to Know About Car Tax When Buying Second-Hand.

Step 4: Check MOT History

Check the MOT history at GOV.UK using the vehicle's registration number. This reveals the car's mileage history, past test results and any advisories. A car that has consistently failed MOTs, shows mileage inconsistencies or has been written off in the past may have ongoing issues. MOT history also reveals whether the vehicle has been used as a taxi or private hire, which affects its tax classification.

Step 5: Estimate Your VED Before Buying

Use the car tax calculator at Cartax.online to estimate the annual road tax for the specific vehicle before you buy. Enter the CO2, fuel type and first registration date from the V5C to see the first-year rate (if applicable) and standard annual rate. Factor this into the total cost of ownership. A car that looks cheap to buy may have high annual VED if it has high CO2 emissions or is subject to the premium rate.

Step 6: Notify DVLA After Purchase

Once you buy the car, you must tax it in your name immediately. You can do this online at GOV.UK if you have the V5C reference number. If the previous owner gave you the green slip (V5C/2), you can use it to tax the car online. Tax does not transfer with the vehicle — even if the seller has months remaining on their tax period, you still need to tax it in your name before driving. Driving without tax is an offence with an £80 fixed penalty.

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 Checklist When Buying Used UK 2026: Full Pre-Purchase Guide