Bihar Road Tax: Latest Rates, Calculation Method & Payment Process

Every motor vehicle in the state of Bihar is liable for road tax, which is an obligatory levy imposed by the state to support the creation and maintenance of roads owned by the state. The income collected by this tax will help the government construct new road networks, modernise existing roads, advance the traffic system, and improve the overall transport system within the state.

The Bihar Motor Vehicles Taxation Act (2001 as amended) regulates the collection of this tax on vehicle owners through the Transport Department. It is legally mandatory to pay the Bihar road tax on time, and the amount you must pay typically varies based on specific criteria.  

In this guide, we’ll walk you through everything you need to know about road tax in Bihar, from its computation and current rates to payment methods and key regulations.

What is Road Tax and Why is it Important?

Road tax refers to an obligatory fee charged by individual state governments on motor vehicles used within the state. It is mandated by the Motor Vehicle Taxation Act, 1988, and is usually imposed when registering a vehicle. Road tax calculation depends on various factors, including the type of vehicle, engine capacity, type of fuel, and usage.

Importance of Road Tax

Paying road tax is more than just fulfilling a legal requirement—it plays a crucial role in ensuring a well-functioning transportation system:

• Funding for Road Infrastructure and Services: Road tax serves as a key source of revenue used for the construction of new roads, repair of damaged routes, installation of streetlights, and overall enhancement of the road network. This directly supports safer and more efficient travel for all.
• Boosting Economic Growth and Connectivity: A well-maintained road system enhances connectivity, facilitating the easy transportation of goods and people. This contributes to economic development by facilitating trade, commerce, and daily commutes.

Road Tax Rules in Bihar

In Bihar, road tax is governed by state law (e.g., the Bihar Vehicle Tax Act, 1979, as amended) and the Central Motor Vehicles Act, 1988. Practically, every vehicle in Bihar has to pay tax to the state Transport Department. Personal vehicles pay a one-time lump sum at first registration. Commercial vehicles usually pay taxes on an annual or multi-year basis.

According to the Bihar Motor Vehicle Taxation Act, all vehicle owners must pay the necessary road tax during registration within the state. This tax will be used to ensure that the state of Bihar is compliant with its transport laws and will help the state to develop its infrastructure.

Vehicles not registered in Bihar can be used on the state’s roads without paying road tax for up to one year. Nonetheless, after this timeframe, these vehicles will be required to be registered under Bihar, and they will have to pay the road tax corresponding to them as prescribed in the state law.

Applicability of Road Tax in Bihar

Road tax rates in Bihar depend on vehicle category, cost and usage:

• Two-Wheelers (Motorcycles/Scooters): New bikes pay 8% of the ex-showroom price if up to ₹1 lakh, 9% if ₹1–8 lakh, 10% if ₹8–15 lakh, and 12% if above ₹15 lakh. There is no separate published depreciation schedule for older bikes in Bihar, so the full rate generally applies on resale or transfer.
• Four-Wheelers (Private Cars): New private cars follow the identical slabs: 8% up to ₹1L, 9% for ₹1–8L, 10% for ₹8–15L, and 12% for >₹15L. Thus, a car costing ₹12 lakh pays about 10% of its price at registration. (Older cars do not receive additional depreciation relief under current Bihar rules.)
• Commercial Vehicles: Heavy vehicles are taxed by capacity. For three-wheelers used commercially, the tax is fixed by term. For motor cabs/taxis (up to 12 seats), the identical 8–12% slabs as above apply. For buses or vans with more seats, Bihar charges per-seat fees. Goods trucks pay either a lump sum for a 10-year tax or annual per-ton charges for heavier trucks.
• Electric Vehicles: Electric cars and three-wheelers receive huge rebates. Bihar’s EV policy grants EVs a 100% road-tax waiver during the policy period. In practice, initial batches of electric four-wheelers get a 75% MV-tax rebate (subsequent EVs 50%), so EVs pay effectively 25% of regular tax. 

Factors Affecting Road Tax Rates

The amount of road tax a vehicle owner pays in Bihar varies as per several factors. Find them listed below:

• Vehicle Attributes: Bihar’s road tax rates vary depending on several vehicle characteristics, including price, size, age, and fuel type.
• Vehicle Price: Expensive or heavy vehicles, such as luxury cars and trucks, are taxed at a higher percentage compared to smaller or lighter vehicles like hatchbacks.
• Vehicle Age: Although Bihar uses fixed tax slabs, older vehicles generally incur lower tax due to depreciation principles applied in many states.
• Fuel Type: Electric vehicles (EVs) benefit from significant tax discounts, while petrol and diesel vehicles are taxed according to standard slabs.
• Original Cost: For both two-wheelers and four-wheelers, the tax slab is determined based on the vehicle’s original purchase price.
• Legal Framework: Tax calculation in Bihar follows the provisions outlined in the Bihar Motor Vehicles Taxation Act of 1951.

Lifetime Tax, Green Tax, and Exemptions in Bihar

• Lifetime Tax: In Bihar, a lifetime tax is applied to private vehicles at the time of registration. This one-time payment covers the tax liability for a fixed period (generally 15 years). In contrast, commercial vehicles, such as buses, taxis, and trucks, are required to pay road tax on a quarterly or half-yearly basis, depending on their classification and usage.
• Green Tax: Bihar imposes a green tax on transport vehicles that are more than 12 years old, as per the Bihar Motor Vehicles Taxation Act, 1994. This tax amounts to 10% of the annual vehicle tax and applies only to specific categories. Notably, three-wheelers, tractors, and trailers are exempt from this green tax. Private vehicles, however, are not currently subject to green tax in Bihar.
• Exemptions: Bihar offers road tax exemptions for specific vehicle categories. These include tractors used for agricultural purposes, three-wheeled vehicles, and trailers, which are exempt from green tax. Additionally, vehicles owned by government departments, ambulances, and vehicles modified for persons with disabilities may be eligible for full or partial exemptions on road tax.

How to Calculate Road Tax in Bihar?

To calculate road tax in Bihar, identify your vehicle’s category and apply the relevant slab rate to its ex-showroom price. 

For instance, a ₹12 lakh car in the ₹8–15 lakh bracket would incur 10% tax, i.e., ₹1.2 lakh. Electric vehicles get rebates—if eligible for a 75% discount, only 25% of the tax applies. Commercial vehicles follow separate rules, such as a fixed ₹8,000 for 10 years if under 1,000 kg, or a per-ton annual rate for heavier ones.

The Bihar Motor Vehicles Tax Act outlines all applicable rates. Since Bihar uses fixed slabs, depreciation isn’t factored in. Simply match your vehicle type and price to the correct rate, multiply accordingly, and apply any EV rebate or commercial formula where relevant.

Parameters Used for Road Tax Calculation in Bihar

Factor	Description
Vehicle Type	Category (bike, auto-rickshaw, car/SUV, bus, truck, etc.) – different slabs or formulas apply.
Engine Capacity	Displacement (cc); larger engines often fall into higher tax categories.
Weight/Seating	Used for trucks and buses: heavier or higher-capacity vehicles are taxed more (e.g. per ton or per seat).
Usage	Private vehicles (personal use) pay a one-time tax. Commercial/transport vehicles (taxis, goods trucks, public buses) may pay recurring tax as per the schedule.
Fuel Type	Petrol/diesel/CNG follow normal rates; electric vehicles receive large rebates (100% exemption or 75% off).
Vehicle Age	Older vehicles generally would attract lower tax if depreciation applied (Bihar’s published rates are static).
Ex-Showroom Price	The tax is calculated on this base price (ex-GST); a higher price results in higher tax owed.
Entry/Green Tax	Vehicles from outside Bihar are exempt from tax for 12 months, after which they must register and pay the Bihar road tax. (Bihar does not levy a special “green tax” surcharge on old vehicles.)

Sample Road Tax Calculation for Different Vehicles

Here’s a Bihar-specific version of the road tax rate table, based on current state slabs and vehicle categories:

Vehicle Type	Price	Tax Rate	Road Tax Payable
Hatchback	₹4,50,000	9%	₹40,500
Electric Car	₹12,00,000	Exempt	₹0
SUV	₹20,00,000	12%	₹2,40,000
Luxury Car	₹40,00,000	12%	₹4,80,000

Disclaimer: Actual road tax in Bihar may vary based on the latest RTO notifications, vehicle specifications, and location of registration. Electric vehicles currently enjoy full exemption under Bihar’s EV policy.

How to Pay Road Tax in Bihar?

Bihar supports both online and offline road tax payment:

Online Payment (via Vahan Portal)

Step 1: Go to vahan.parivahan.gov.in.

Step 2: Choose Bihar as your state and select your Regional Transport Office (RTO).

Step 3: Input your vehicle’s registration number.

Step 4: An OTP will be sent to your registered mobile number. Enter it to access your vehicle details and tax dues.

Step 5: Check the tax amount and proceed to pay using a card, net banking, or UPI.

Step 6: After successful payment, download or print the e-receipt. This serves as your official proof of tax payment.

Offline Payment (at RTO Office)

Step 1: Go to the Regional Transport Office where your vehicle is registered.

Step 2: Request the road tax payment form from the counter.

Step 3: Complete the form and attach required documents (e.g., RC, insurance).

Step 4: Pay the tax via cash, cheque, or demand draft.

Step 5: The RTO will process your payment and issue an official receipt. Keep it safe as proof of payment.

Whether online or offline, payment must be completed promptly to obtain or renew the vehicle’s RC.

Documents Required for Road Tax Payment

When paying road tax, whether online via the Vahan portal or offline at the RTO, you should keep the following documents ready:

• Vehicle Invoice: The dealer’s bill showing the ex-showroom price.
• Registration Certificate (RC): The current RC or smart card of the vehicle.
• Insurance Certificate: Valid motor insurance policy.
• Pollution Under Control (PUC) Certificate: A valid emission test certificate.
• Address Proof: Aadhaar, Passport, Voter ID, or utility bill of the registered owner.
• No Objection Certificate (NOC): Required if the vehicle is transferred from another state. Also include Form KMVT-14 for interstate transfers. If the care is financed, the financier’s NOC is needed.
• Other Forms: Any state-specific road tax or registration forms issued by the RTO.

These are the standard documents for vehicle registration and road tax payment. The RTO will verify them when accepting your tax payment.

Penalties for Late Payment of Road Tax in Bihar

Bihar law strictly penalises the delayed road tax payments. As per the Motor Vehicles Act, 1988 and the Bihar Vehicle Tax Act, 1994, failing to pay on time attracts fines and interest. The penalty depends on how late the payment is:

Road Tax Payment Postponed By	Penalty Charged
1 to 15 days	None
15–30 days late	25% of the tax due
30–60 days late	50% of the tax due
60–90 days late	100% (equal to the tax amount)
Over 90 days late	200% (double the tax amount)

Thus, the maximum fine is an additional 100–200% of the original tax. Bihar also charges interest on overdue tax. In short, if you owed ₹1,000 in tax and delay beyond 90 days, you could pay up to ₹2,000 total. Always pay before the deadline to avoid these heavy penalties.

Refunds and Road Tax Transfer Rules in Bihar

Road tax refunds are available to eligible vehicle owners in Bihar under specific circumstances. Below are the conditions and steps for claiming a refund:

Conditions for Road Tax Refund

• Vehicle Disposal: If you scrap your Bihar-registered vehicle before the end of the paid tax period, you can apply for a refund of the unused portion.
• Inter-state Transfer: If you sell or transfer your vehicle to another state and re-register it there, you can claim a refund from the Bihar RTO.

Note: If the vehicle is sold within Bihar, no refund is issued—the new owner assumes the remaining tax, and only transfer fees apply.

Procedure for Applying for a Road Tax Refund

Step 1: Visit RTO: Go to the Regional Transport Office where your vehicle is registered.

Step 2: Apply: Fill out the road tax refund application form.

Step 3: Submit Documents: Include the original registration certificate (RC), original road tax receipt, valid insurance copy, and either proof of scrapping or NOC (for interstate sale).

Step 4: Verification: The RTO will verify the remaining tax validity and issue a refund voucher or cheque for the unused tax period.

Comparison: Road Tax in Bihar vs Other States

Road tax rates vary by state. For context, here’s how Bihar’s slabs compare to a few neighbours and central states (for a private car of modest value):

State	Vehicle Price Range	Road Tax (Private Car)	Notes
Bihar	≤₹1L: 8%; ₹1–8L: 9%; ₹8–15L: 10%; >₹15L: 12%	8–12% the price	EVs: 0–25% after rebates
Haryana	≤₹6L: 5%; ₹6–20L: 8%; >₹20L: 10%	5–10% of the price	–
Delhi	≤₹6L: Petrol 4%, Diesel 5%; ₹6–10L: Petrol 7%, Diesel: 8.75%; >₹10L: Petrol 10%, Diesel 12.5%	4–12.5% (diesel higher)	EVs pay 0%
Maharashtra	≤₹10L: Petrol 11%, Diesel: 13%; ₹10–20L: Petrol 12%, Diesel 14%; >₹20L: Petrol 13%, Diesel 14%	11–14% of the price	EVs are 100% exempt
Kerala	≤₹5L: 10%; ₹5–10L: 13%; ₹10–15L: 15%; ₹15–20L: 17%;>₹20L: 22%	10–22% of the price	–

Bihar’s rates are broadly in line with other states’ low-price slabs. Some states, like Delhi and Maharashtra, add fuel-based distinctions; Bihar uses a simpler price slab. Always check the latest state notifications, as these rates can change. 

Road tax in Bihar remains a critical source of funding for its roads and infrastructure. Vehicle owners should ensure they pay the correct tax for their vehicle type and price, either online via the Vahan portal or at the RTO, to avoid unnecessary legal hassles.  

FAQs About Road Tax in Bihar