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Key Highlights
- Road tax in Tamil Nadu is charged for maintaining the state’s road infrastructure, such as roads, bridges, highways, and tunnels.
- Vehicle owners must pay taxes according to their vehicle category, engine capacity, weight, usage, price, and fuel type.
- Different tax rates apply to two-wheelers, three-wheelers, four-wheelers, goods vehicles, and vehicles from other states.
- Road taxes in Tamil Nadu are paid online and offline, and penalties for non-payment.
Tamil Nadu is the southernmost state of India which hosted about 28.6 crore annual visitors in 2023. Nearly 90% of the visitors were from nearby states which highlights the importance of the road network. Road tax is an essential component of any state government from which revenue is generated for the upkeep of state road infrastructure.
What is Road Tax in Tamil Nadu?
Road tax is levied on the owner of the vehicle and the tax is charged as per the category, type, weight, engine and usage of the vehicle under Tamil Nadu Motor Vehicle Taxation Act, 1974.Road tax is the fee that the government charges for building, repairing and maintaining roads, bridges, flyovers, highways, tunnels and expressways for better efficiency. Improving road network for better connectivity to the nearby states and for improving and facilitating higher trade volume. Also Read - Here's what you need to know about green tax in India
Who Enforces Road Taxes in Tamil Nadu?
The central and state governments both are involved in the enforcement of road taxes throughout the country for the development of road infrastructure. Road taxes are imposed by the transport minister of Tamil Nadu state. Calculation of Road Taxes in Tamil Nadu For the calculation of road taxes in Tamil Nadu, the following factors are considered:
- Based on the segment: Whether the vehicle is of luxury, sports or regular segment. Luxury segments are taxed higher.
- Based on engine capacity: The capacity of the engine is considered based on its cc or horsepower.
- Based on weight: Tax is imposed as per the weight of the vehicle and the weight carrying capacity of the vehicle.
- Based on usage: Whether the vehicle is for personal use or commercial use.
- Based on price: The RTO registration charges or road tax is charged on the ex-showroom price of the vehicle.
- Based on fuel type: The tax amount is also affected based on whether the vehicle is powered by petrol, diesel, hybrid or electric-based energy.
Also Read - Know how to pay road tax in India
Applicable Road Taxes in Tamil Nadu
Road taxes are charged differently for the below-mentioned vehicle types:
Two-wheelers
Road taxes on newly purchased two-wheelers are charged on their ex-showroom price which is administered by the Regional Transport Office (RTO) during the registration process.The rates are as follows:
- 10% of the total cost of the vehicle (under ₹1 lakh)
- 12% of the total cost of the vehicle (above ₹1 lakh)
- For newly registered two-wheelers
- For old two-wheelers
For old bikes, the tax depends on the vehicle's age and its price. Here are the rates:
| Age of Vehicle | Cost of the vehicle | |
| Exceeding ₹1 lakh | Not exceeding ₹1 lakh | |
| 0-1 year | 8.25% | 10.25% |
| 1-2 years | 8% | 10% |
| 2-3 years | 7.75% | 9.75% |
| 3-4 years | 7.50% | 9.50% |
| 4-5 years | 7.25% | 9.25% |
| 5-6 years | 7% | 9% |
| 6-7 years | 6.75% | 8.75% |
| 7-8 years | 6.50% | 8.5% |
| 8-9 years | 6.25% | 8.25% |
| 9-10 years | 6% | 8% |
| 10-11 years | 5.75% | 7.75% |
| Above 11 years | 5.50% | 7.50% |
Three-wheelers
The rate of tax depends upon whether the vehicle is going to be used for transporting passengers or for commercial purposes. It is as follows;
- For passenger vehicles: The rate for tax is calculated based on seats per vehicle. The rate per seat is ₹600 annually.
For example: If the passenger vehicle has 6 seats in total (including the driver seat) the total road tax would be (6 x 600) ₹3600 annually.
- For goods-carrying vehicles: The rate for tax is calculated based on load-carrying capacity. The rate per tonne is ₹1000 annually.
For example: If the goods-carrying vehicle has a capacity of 6 tonnes the total road tax would be (6 x 1000) ₹6000 annually or paid in parts annually.
Four-wheelers
Road taxes on four-wheelers newly purchased for personal use are charged as per their ex-showroom prices. They are as follows:
- Upto ₹5 lakh: 12%
- More than ₹5 lakh and up to ₹10 lakh: 13%
- More than ₹10 lakh and up to ₹20 lakh: 18%
- More than ₹20 lakh: 20%
- For newly registered four-wheelers
- For old four-wheelers
The road tax on old four-wheelers is as follows:
| Age of Vehicle | Cost of the vehicle | |||
| Not exceeding ₹5 lakh | Exceeding ₹5 lakh but not exceeding ₹10 lakh | Exceeding ₹10 lakh but not exceeding ₹20 lakh | Exceeding ₹20 lakh | |
| 0-1 year | 10.75% | 11.75% | 16.75% | 18.75% |
| 1-2 years | 10.50% | 11.50% | 16.50% | 18.50% |
| 2-3 years | 10.25% | 11.25% | 16.25% | 18.25% |
| 3-4 years | 10% | 11% | 16% | 18% |
| 4-5 years | 9.75% | 10.75% | 15.75% | 17.75% |
| 5-6 years | 9.5% | 10.50% | 15.50% | 17.50% |
| 6-7 years | 9.25% | 10.25% | 15.25% | 17.25% |
| 7-8 years | 9% | 10% | 15% | 17% |
| 8-9 years | 8.75% | 9.75% | 14.75% | 16.75% |
| 9-10 years | 8.5% | 9.5% | 14.50% | 16.50% |
| 10-11 years | 8.25% | 9.25% | 14.25% | 16.25% |
| Above 11 years | 8% | 9% | 14% | 16% |
Goods-carrying Vehicles
Taxes for the goods-carrying vehicle are charged based on their payload capacity which are as follows:
| Age of Vehicle | Applicable road tax (in ₹) |
| 3000 Kg max weight | 3600 (Annual Tax) |
| 3000 Kg to 5500 Kg | 1425 (Quarterly Tax) |
| 5500 Kg to 9000 Kg | 2000 (Quarterly Tax) |
| 9000 Kg to 12000 Kg | 2400 (Quarterly Tax) |
| 12000 Kg to 13000 Kg | 2600 (Quarterly Tax) |
| 13000 Kg to 15000 Kg | 3100 (Quarterly Tax) |
| More than 15000 Kg | 3100 (quarterly tax) (Additional 100 for every 250 Kg or part thereof over 15000 Kg in laden weight). |
Road Tax on Other State Vehicles
Vehicles entering Tamil Nadu roads are liable to pay road tax as per the state's policy for maintaining fairness in the usage of the state's assets and roadways. Rates for road tax for different types of vehicles are below mentioned:
| Type of Vehicle | Frequency of Tax Payment | Tax Rate |
| Vehicles Light Goods | Daily | ₹60 per day |
| Medium Goods Vehicles | Daily | ₹90 per day |
| Heavy Goods Vehicles | (minimum 12 days) | ₹120 per day |
| Non-AC Public Service Vehicles | Monthly (minimum 12 days) | ₹25 per day |
| AC Public Service Vehicles | Quarterly (minimum 30 days) | ₹35 per day |
Documents Required for Payment of Road Tax in Tamil Nadu To pay road tax in Tamil Nadu, the following documents are required:
- Vehicle registration certificate (RC)
- Valid vehicle insurance certificate
- Pollution Under Control (PUC) Certificate
- Aadhaar card, voter ID, etc. for identity proof
- Senior secondary mark sheet, ration card, or bank statement to confirm address
- Form 16 (for commercial vehicles)
Online Payment of Road Tax in Tamil Nadu
For paying the road taxes online the steps are really simple. They are as follows -
- Step 1: Kindly visit the official Parivahan Seva website.
- Step 2: Go to the online services.
- Step 3: Select state and RTO.
- Step 4: Enter the vehicle details (last 5 digits).
- Step 5: Authenticate vehicle details
- Step 6: Choose an online payment mode and make the payment.
- Step 7: Transaction successful.
- Step 8: Download the payment receipt.
Offline Payment of Road Tax in Tamil Nadu For paying the road taxes in an offline method the below-mentioned steps would help:
- Step 1: Visit your nearest RTO office in your district.
- Step 2 : Submit the above-mentioned documents.
- Step 3: Make payment and collect the receipt.
Penalty for Non-payment of Road Tax
If you fall short in making payment of road tax in due time, you are liable for a penalty as per Tamil Nadu legislature for road taxes.It would be a legal offence if rules were not followed, and legal action or even the seizure of the vehicle could be taken if it is driven without paying taxes. Fulfil Your Road Tax Obligation Under Tamil Nadu Motor Vehicles Taxation Act, 1974, the vehicle owner is obliged to pay road tax to the state government as he will use the state assets and road network for various purposes, whether it is for trade, travelling, or socio-economic purposes.Also, buy a motor insurance policy to adhere to the rules of the Motor Vehicles Act of 1988. Depending on your coverage needs, buy a third-party or comprehensive plan.Explore the leading motor insurance plans available in the market and make an informed choice. Also, use efficient tax planning tools to lower your tax outgo and enhance your savings.
FAQS - FREQUENTLY ASKED QUESTIONS
What is the green tax?
Green tax is introduced to counter environmental damages which are done by the emissions that are released from vehicles.
Can you drive vehicles from other states in Tamil Nadu?
Yes, you can drive vehicles from other states in Tamil Nadu, but you have to pay road taxes and toll charges for using the roads.
Do I have to pay road tax on a second-hand vehicle?
No, if the first owner pays a one-time tax after purchasing the vehicle, you do not have to pay any more taxes on it.
Is there no road tax on electric vehicles?
Yes, road tax is exempt on the purchase of electric vehicles for the first three Years. Thereafter, road tax will be applicable.
Does the width of the car or SUV affect the road tax?
Yes, because a wider car or SUV would cover more area on the road so higher tax rates would apply.
Does the height of the car or SUV affect the road tax?
Usually, the height of the car or SUV would not affect the taxes, but because of certain segment specifications, the tax rates may differ.
On what basis is road tax charged on commercial vehicles?
Road taxes are charged as per the vehicle's weight or seating capacity.
Can we pay road tax online in Tamil Nadu?
Yes, you can pay road tax online in Tamil Nadu by visiting the official website of Parivahan Sewa.
What will happen if I am unable to pay road tax?
If you are not able to pay road taxes on time, you will probably have to face a penalty, and if you are caught driving a vehicle without paying road tax, you can be subject to imprisonment.
Can I opt to pay road tax in instalments?
Road tax on personal vehicles must be paid once upon purchase, but for commercial and passenger vehicles, it can be paid annually, quarterly, or monthly.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
