Odisha, one of the fastest-growing Indian states, is known for its developing infrastructure and economy. To maintain this development, the government collects different kinds of taxes from the citizens. One of these is the Odisha road tax.
The money collected through road tax in Odisha is used to develop the urban and rural roads, railway overbridges, flyovers, ports, etc. As per the government acts, paying road tax is mandatory in Odisha for all motor vehicles that are operating within this state’s geographical boundaries.
Vehicle owners in Odisha must understand the road tax calculation, factors affecting the amount, and payment methods to pay their road tax accurately.
Table of Contents
What is Road Tax and Why is it Important?
As per the state government rules, road tax is levied on all automobile owners who use their vehicles on the road. Vehicle owners need to pay this road charge during registration, and it is used for the safety and maintenance of roads.
However, the amount of road tax varies across India depending on the vehicle type, cost, engine capacity, etc. Vehicle owners can pay the road tax online through the road tax portal or the website of the transport department.
Importance of Road Tax
Road tax is essential for the following reasons:
- Generating Revenue: The amount collected from road tax is used for developing the road infrastructure, enhancing the services of road transportation, and road maintenance.
- Legal Requirement: Every vehicle owner must mandatorily comply with the Motor Vehicles Act 1988. If a vehicle owner fails to pay the road tax, they may attract a fine, face refusal of fitness, or have their vehicle confiscated.
- Vehicle Movement Regulation: Tax laws discourage the over-ownership of particular car models, which helps manage traffic, preserve environmental control, and encourage greener alternatives.
Road Tax Rules in Odisha
In Odisha, road tax is calculated as per the type, ex-showroom price, and engine capacity of the vehicle. The rate of road tax is 6% for two-wheelers priced below ₹5 lakh, and it is 8% for cars that are below 1000cc. The road tax for commercial and luxury vehicles is higher than that for base models. However, electric cars attract lower road taxes.
Applicability of Road Tax in Odisha
Any vehicle registered with the Odisha state department must pay road tax in this state. However, the rates of road tax in Odisha will differ based on the categories below:
- Commercial Vehicles: Buses, taxis, delivery vans, and goods transport vehicles come under this group and attract a different tax category.
- Private Vehicles: Motorcycles, scooters, cars, and other private vehicles are included in this category.
- EVs (Electric Vehicles): Like any other state in India, Odisha also encourages EVs by offering rebates or tax exemptions. This is a part of the green mobility program of the Odisha government.
Factors Affecting Road Tax Rates
The following factors are considered while calculating Odisha road tax:
- Vehicle Type: Whether you own a four-wheeler, three-wheeler, two-wheeler, or a private car, the road tax will vary. Two-wheelers usually attract lower road tax compared to three- and four-wheeler vehicles.
- Usage Type: The road tax rates on bikes, family cars, or other personal vehicles are comparatively lower. However, commercial vehicles like trucks, taxis, and buses attract more road taxes because they constantly speed and brake, putting a heavy load on the roads.
- Capacity of the Engine: Vehicles with higher engine capacities need to pay more road tax. For two-wheelers with an engine capacity below 125 cc, road tax is lower. Four-wheelers like luxury sedans or SUVs that have higher engine capacity attract more road tax.
- Vehicle Model: Luxury or sports vehicles are of higher market value, and they may damage public infrastructure during maintenance. Therefore, they attract a higher road tax.
- Type of Fuel: Diesel vehicles usually incur higher taxes due to their greater environmental impact. Electric cars, being eco-friendly, are often fully exempt or benefit from lower taxes as an incentive to promote green transportation by the government.
- Vehicle’s Ex-showroom Price: The ex-showroom price of your vehicle is paid before the insurance and tax charges are levied on it. Thus, the ex-showroom price also plays a crucial role in determining the road tax in Odisha. Road tax for expensive vehicles is higher than for cost-efficient ones.
- Seating Capacity: For commercial vehicles such as buses and vans, road tax is influenced by seating capacity. The greater the number of passengers a vehicle can carry, the higher the road tax charged. This is because higher-capacity vehicles cause more road wear and are primarily used for commercial transport.
Lifetime Tax, Green Tax, and Exemptions
- Lifetime Tax: Vehicle owners in Odisha can pay road tax for a lifetime while buying the car. Thus, the owner no longer needs to pay road tax throughout the life of the vehicle, other than when transferring the ownership or selling it.
- Green Tax: Odisha levies a green tax on older cars in an effort to reduce pollution. When renewing a fitness certificate, transport vehicles older than 15 years must pay ₹4,000.
When renewing their registration certificates, non-transport cars of the same age must pay ₹1,000. This policy supports the state’s efforts to protect the environment.
- Exemptions: Vehicles in Odisha that are used for transporting disabled people or agricultural purposes are exempted from road tax. Electric cars may also enjoy tax exemptions or reduced road tax rates in Odisha.
How to Calculate Road Tax in Odisha?
As mentioned earlier, Odisha road tax is calculated based on several factors, including the engine capacity, type, and purpose of your vehicle, as well as its ex-showroom price.
Based on their price, two-wheelers and cars attract different tax slabs, while commercial and luxury vehicles attract a higher tax rate. Road tax is usually paid as a one-time fee during vehicle registration.
Parameters Used for Road Tax Calculation
The standard road tax calculation parameters in Odisha are discussed in the table below.
| Factors | Description |
| Type of the Vehicle | Motorcycles, cars, buses, trucks, commercial vehicles, etc. |
| Capacity of the Engine | Measured in litres or cubic centimetres (CC) |
| Weight of the Vehicle | Curb Weight or GVW (Gross Vehicle Weight) |
| Age of the Vehicle | Total years from registration or manufacture |
| Fuel Type | Diesel, petrol, CNG, electric, hybrid |
| Location of Registration | District, state, or region-specific rates |
| Price or Value of the Vehicle | Sometimes used to determine road tax as a percentage |
Sample Road Tax Calculation for Different Vehicles
The table below shows how the rate of road tax differs based on the type of cars in Odisha:
| Vehicle | Price | Tax Rate | Road Tax Payable |
| Hatchback | Below ₹5,00,000 | 6% | ₹30,000 |
| SUV | ₹20,00,000 | 10% | ₹2,00,000 |
| Luxury Cars | ₹40,00,000 | 12% | ₹4,80,000 |
| Electric Car | ₹12,00,000 | 5% | ₹60,000 |
Disclaimer: These are sample figures. Actual road tax in Odisha may differ as per the latest RTO updates, vehicle location, and specific vehicle configurations.
How to Pay Road Tax in Odisha?
The procedures for road tax payment in Odisha are explained below:
Online Payment Process
The online facility has made Odisha road tax payment more convenient. The steps for online road tax payment are provided below:
- Step 1: Visit the official e-Vahan website (click here) and click on the option for tax payment.
- Step 2: Select your state and service type. For instance, select “Vehicle Tax Collection (NCR)” if you have an NCR permit; otherwise, opt for “Vehicle Tax Collection (Other State)”
- Step 3: Provide your vehicle registration number on the new page and select the “Get Details” option to finish the remaining form.
- Step 4: Select the option “Calculate Tax” and check the tax bracket in which your vehicle falls.
- Step 5: Select the “Pay” option to initiate the Odisha road tax payment.
- Step 6: Select your preferred payment method and follow the provided instructions to complete your payment.
- Step 7: Once you have completed the payment procedure, you will be redirected to the Checkpost application by the bank. You can take a printout of the payment receipt for future reference.
Offline Payment Process
You can visit your local RTO office in Odisha if you prefer to pay in person. Here’s the process:
- Step 1: Visit the nearest RTO office in Odisha to collect the form for road tax payment.
- Step 2: Fill out the form with details regarding your vehicle’s engine, registration number, and fuel type.
- Step 3: Provide necessary documents, such as ID proof, RC, and insurance details, and submit the completed form.
- Step 4: Pay the road tax in your preferred payment mode based on the available payment methods at the counter.
- Step 5: Collect the receipt for road tax payment confirmation.
Documents Required for Road Tax Payment
When paying road tax, either online or offline, you’ll need to submit the following documents:
- RC (Vehicle Registration Certificate): This proves that your vehicle is registered in Odisha.
- Identity Proof: Aadhaar Card, driving license, Voter ID card, or any other valid Government identification.
- Ex-Showroom Price Bill: Original invoice of your vehicle when it was purchased.
- Pollution Certificate: For older vehicles, a pollution certificate is required.
- Address Proof: Passport, utility bill, or any other document that proves your address.
Penalties for Late Payment of Road Tax in Odisha
Delays incur fixed fines and daily or monthly interest in Odisha. Below is a table illustrating the penalty structure in case of late payment:
| Delay Period | Penalty Rate/Fine |
| Within 15 days | Up to 25% of the annual tax |
| From 16 days to 1 month | Up to 50% of the annual tax |
| From 1 month to 2 months | Up to 100% of the annual tax |
Note: The above figures are indicative. Actual penalties may vary based on specific circumstances and are subject to the discretion of the taxation authority.
Refunds and Road Tax Transfer Rules in Odisha
Vehicle owners can apply for a refund of road tax under the following conditions:
Conditions for Road Tax Refund
Here are some of the cases when you can apply for a road tax refund in Odisha:
- Extra Payment: If you have accidentally paid the road tax twice.
- Inter-state Transfer: If your vehicle is transferred to a different state and registered there permanently.
- Scrapping of Vehicle: If your car is scrapped before the tax period ends, and you have valid proof for that.
Procedure for Applying for a Road Tax Refund/Transfer
Here are the steps to follow to apply for a refund of road tax in Odisha:
- Step 1: Go to the RTO office from where you got the vehicle registration.
- Step 2: Fill out the required forms and provide the necessary documents.
The RTO will look after your request and provide a refund or conduct a transfer.
Comparison: Road Tax in Odisha vs Other States
Here’s a simplified comparison table with states, based on a ₹10 lakh private petrol car and corresponding electric vehicle (EV) tax status:
| State | Road Tax for Car (₹10L) | Electric Vehicle Tax |
| Odisha | ₹80,000 – ₹1,00,000 (8–10%) | 5% |
| Karnataka | ₹1,30,000 – ₹1,80,000 (13–18%) | Exempted (for 1st registration) |
| Maharashtra | ₹1,10,000 – ₹1,30,000 (11–13%) | Exempted (100%) |
| Tamil Nadu | ₹1,00,000 – ₹1,50,000 (10–15%) | Exempted (100%) till 2025 |
Note: Road tax rates may vary depending on vehicle specifications and RTO assessments. Always consult the RTO of the respective states for precise calculations.
Odisha’s road tax funds infrastructure and eco-friendly programs, with rates based on vehicle type, engine size, and fuel. Electric vehicles are exempt to encourage green transport.
Timely payment through online platforms avoids penalties, supports city development, and streamlines vehicle ownership. Staying informed maximises benefits from Odisha’s road tax system.
FAQs about Road Tax in Odisha
Q. Which documents do I need to produce to pay road tax in Odisha?
Vehicle owners must provide documents like the registration number, RTO location, and chassis number of the vehicle to pay road tax in Odisha.
Q. What is the ideal duration to pay road tax in Odisha?
In Odisha, commercial vehicles pay road tax quarterly or annually. In contrast, private cars, jeeps, maxi cabs, omnibuses, and educational buses pay road tax as a one-time payment during registration, ensuring clarity in payment frequency based on vehicle type.
Q. Can I pay road tax in Odisha annually?
In Odisha, goods and commercial vehicle owners can pay road tax annually or quarterly. However, private cars, jeeps, maxi cabs, omnibuses, and educational institution buses must pay the road tax as a one-time lifetime payment during registration.
Q. Can I submit my vehicle’s road tax online in Odisha?
Yes, Odisha road tax can be paid online through the official Odisha Transport Department website or the Parivahan portal, offering a convenient, secure way to complete payments without visiting an RTO office.
Q. Are electric vehicles exempt from road tax in Odisha?
Electric vehicles in Odisha receive reduced road tax as part of state policies encouraging environmentally friendly transport until at least 2025.
