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.

Electric Car Tax UK 2026: EVs Road Tax Explained

April 13, 2026 in United Kingdom — One of the most common questions from prospective electric car buyers is: do electric cars pay road tax in the UK? The answer is nuanced — electric vehicles enjoy significant electric car tax advantages in the UK, but they are not permanently exempt. Here is what you need to know about EV road tax in 2026.

Do Electric Cars Pay Road Tax in the UK?

Electric cars are not exempt from Vehicle Excise Duty — they still require road tax. However, they receive the most favourable rates available. As of 2026, any vehicle with 0g/km CO2 emissions pays £0 first-year VED, then £10 per year for years 2-6, and the standard £190 annual rate thereafter.

So while electric cars do technically pay road tax in the UK, the annual cost is among the lowest of any vehicle type — £10 per year compared to £190 for a petrol car.

Electric Car Tax Rates UK 2026

Brand new EV (registered 2025+): £0 first year — best available rate
EV registered 2024: £0 first year rate still applies
EV years 2-6: £10 annual VED — significantly lower than petrol equivalents
EV years 7+: £190 annual rate — same as petrol, diesel, hybrid
Used EV (any age): £10 annual (years 2-6 of that registration), then £190

Future Road Tax for Electric Cars

The Chancellor announced in the 2025 Autumn Statement that electric vehicles will begin paying standard VED rates from 2027. The current zero first-year rate and £10 annual benefit will be phased out as the EV market matures. This means EV buyers in 2026 have a narrow window to lock in favourable rates. Related: Car Tax | Electric Cars Road Tax UK 2026 | Electric Vehicle Road Tax UK 2026 | UK Electric Vehicle Tax 2026.

The planned change reflects the growing proportion of EVs in the fleet — as zero-emission vehicles become mainstream, the tax advantages that encouraged their adoption will be gradually removed to maintain VED revenue.

Electric Car Tax vs Petrol: A 5-Year Comparison

Over a five-year ownership period, the electric car tax UK savings compared to a petrol equivalent are substantial. A petrol car emitting 150g/km pays approximately £1,385 in VED over five years (year one: £600, then four years at £190 + year 5 at £190). An EV pays £0 + 4 x £10 = £40 total. That is a saving of £1,345 in road tax alone.

Company Car BIK Tax for Electric Vehicles

For company car drivers, the Benefit-in-Kind rate for zero-emission vehicles is just 2% of the P11D value — the lowest BIK rate available. A £40,000 electric company car costs just £800 per year in BIK tax at 40% tax rate (£320 per year). This makes EVs extraordinarily tax-efficient for company car drivers.

Conclusion

Electric cars do pay road tax in the UK, but at the lowest rates available — £0 first year and £10 annually for years 2-6. The window to benefit from these rates is closing as 2027 reforms approach. For the most comprehensive electric car tax UK guidance, use our car tax calculator. Read more at GOV.UK VED rate tables.

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.