Road Tax in Tamil Nadu: Rates, Calculation, and Online Payment Guide

Posted on: Jan 7, 2025 | 3 mins | Written by: HDFC ERGO Team

Road Tax in Tamil Nadu: Rates, Calculation, and Online Payment Guide

Being a state with a booming economy and extensive road infrastructure, Tamil Nadu has an underlying prerequisite of road tax for all its vehicle owners. The state government collects this tax to build, repair and maintain roadways. In this blog, we will take you through how to calculate Tamil Nadu road tax for your vehicle and the various methods of payment, along with rates applicable for each vehicle category.

What is Road Tax in Tamil Nadu?

Thirdly, the Road tax in Tamil Nadu is a statutory measure levied by the owner of a vehicle on the use of the state roads maintained by the administration. The Tamil Nadu Motor Vehicles Taxation Act collects it. The tax is due during vehicle registration or may be owed at defined intervals depending on vehicle type.

Tamil Nadu road tax is applicable on all vehicles, two-wheelers, three-wheelers, four-wheelers, and vehicles with number plates registered in another state, but are driven in Tamil Nadu on a regular basis. Vehicle specifications determine tax rates: type, weight, engine capacity, and cost.

How do you pay the road tax online in Tamil Nadu?

The Tamil Nadu Government has launched an online portal for easy payment for road tax. Follow these steps to pay Tamil Nadu road tax online:

1. Visit the Official Portal:

You need to visit the official website of the Transport Department of Tamil Nadu or the Vahan portal.

2. Log in/Register:

If you are a new user, create an account. Otherwise, enter your credentials and log in.

3. Choose Tax Payment Option:

Go to the payment for road tax and type in your vehicle details.

4. Verify Tax Amount:

When your vehicle’s details are passed to the system, the tax amount is automatically calculated for you.

5. Complete Payment:

Complete the transaction using any one of the several preferred payment methods, such as net banking, UPI, or debit/ credit card.

6. Download Receipt:

After successful payment, you will download the digital receipt for future reference.

Tamil Nadu Road Tax Calculation

Tamil Nadu road tax is calculated considering several factors:

1. Vehicle Type:

Tax rates vary for two-wheelers, three-wheelers, four-wheelers and commercial vehicles.

2. Engine Capacity:

The more powerful your car engine, the more the tax rate you'll attract.

3. Age of the Vehicle:

The tax liability of older vehicles is reduced by depreciation.

4. Fuel Type:

Tax exemptions or concessions may be enjoyed by electric and alternative fuel vehicles as opposed to petrol or diesel vehicles.

5. Ex-Showroom Price:

For private vehicles, the price is generally a percentage of the ex-showroom price.

For example, let’s say that there is a road tax rate of 10% of the ex-showroom price, meaning the tax of a new car is eventually ₹80,000 if the car costs ₹8,00,000!

Road Tax in Tamil Nadu for Two-Wheelers:

Tamil Nadu has lots of two-wheelers. The road tax for these vehicles is based on their engine capacity and cost:

• Engine Capacity Below 150cc:

For entry-level two-wheelers, the entry rate is lower.

• Engine Capacity Above 150cc:

Two-wheelers with higher capacity attract higher taxes.

Electric two-wheelers, from time to time, get exemptions or reduced tax rates to encourage eco-friendly transport. Road tax for two-wheelers is typically a one-time payment.

Road Tax in Tamil Nadu for Three-Wheelers:

Local transport depends on three-wheelers, including auto-rickshaws and small goods carriers. The road tax for these vehicles varies based on their purpose:

• Passenger Vehicles:

Seating capacity determines tax rates.

• Goods Carriers:

Where a vehicle has a gross weight, tax is determined.

A cheaper tax on cheaper CNG or electric three-wheelers may be offered, compared to diesel varieties.

Road Tax in Tamil Nadu for Four-Wheelers:

Four-wheelers, including private cars and commercial vehicles, have distinct road tax rates:

• Private Cars:

The tax is a percentage of the vehicle’s ex-showroom price. For example:

Cars priced up to ₹6,00,000 may attract a tax rate of about 7%.

The higher you are stepping from the ₹20,000,00 price slab, the more tax slabs you may have on cars.

• Commercial Vehicles:

Taxis, buses, and goods carriers are included. Capacity, weight, and the type of service to which an aircraft belongs account for the changes in tax rates.

Road Tax applicable for vehicles of any other state in Tamil Nadu

If a vehicle registered in another state is kept in Tamil Nadu for the long term (more than 12 months), then road tax is paid. Here’s the process:

• Obtain a NOC:

Get a No Objection Certificate (NOC) on your vehicle from the RTO where the vehicle is originally registered.

• Re-register the Vehicle:

Vehicle re-registration in Tamil Nadu.

• Pay Road Tax:

You will be charged the tax according to the depreciated value of your vehicle.

You could be penalised or legal action taken if you do not pay the appropriate tax.

Alongside paying road tax, securing appropriate car insurance, such as comprehensive car insurance or third-party car insurance, ensures financial protection and peace of mind on the road. Stay informed and fulfil your obligations for a smooth driving experience in Tamil Nadu.

FAQs on Road Tax in Tamil Nadu

1. Can Tamil Nadu road tax be refunded if I move to another state?

If you can provide the documentation for re-registration in the new state and get things done correctly, you can get a refund.

2. Do electric vehicles have tax exemptions in Tamil Nadu?

In most cases, the government is offering tax exemptions or lowered rates for buying electric vehicles in an attempt to push for sustainable transport.

3. What is the relationship between road tax and car insurance?

Road tax does not impact the cost of car insurance, but it is vital to delivering successful car insurance claims under comprehensive car insurance or third party car insurance.

4. Is Tamil Nadu road tax payable offline?

Sure, you can go to your local RTO and pay your road tax. At the same time, online payment is quicker and more convenient.

5. If I didn’t pay the road tax in Tamil Nadu, what would happen?

Penalties, vehicle impoundment, etc., can result from non-payment.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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