In Kerala, road tax is a compulsory fee levied on every vehicle owner and is critical in financing the infrastructure development and maintenance of roads within the state. The road tax you must pay depends upon the type of vehicle, fuel used, engine size, and the vehicle’s purchase price. Kerala’s road tax system seeks to achieve equity and assist in meeting the infrastructural demands as the vehicle population increases.
Thus, every vehicle owner should understand how road tax payment is made, the method of calculation, and the associated exemptions and penalties. Continue reading to learn all the necessary information concerning Kerala road tax and its implications on vehicle ownership.
What is Road Tax and Why is it Important?
Road tax is a state-imposed tax levied on vehicle owners for travelling on state-owned public roads. It is usually used to fund roads, construction, maintenance, and improvements to roads, highways, bridges, and other road-associated structures. The primary reason for levying road tax is to ensure that roads are kept safe, maintained, and prepared for the increasingly demanding traffic levels imposed by modern society and the growing number of vehicles.
Apart from being a legal obligation, road tax payment is a civic duty to aid the entire community. Road conditions affect daily commuting, transport efficiency of goods, response times in contingencies, and, ultimately, the state’s economic development.
Without adequate funds through road tax, the government would not have been able to maintain the existing roads or invest in new infrastructure, inviting potholes, traffic snags, and hazardous driving conditions.
Road Tax Rules in Kerala
Kerala road tax rules differ according to the type of vehicle, its usage, and the duration of ownership.
- Applicability of Road Tax in Kerala
In Kerala, road tax is imposed on various vehicles and is controlled by the Kerala Motor Vehicles Taxation Act. This tax applies to:
- Private Vehicles: Cars, motorcycles, scooters, and mopeds used for private purposes.
- Commercial Vehicles: Buses, taxis, trucks, goods carriers, and other vehicles used for transporting goods.
- Electric Vehicles: Battery-operated cars, two-wheelers, and commercial EVs are usually taxed based on their purchase price.
- Specialised Vehicles: Ambulances, school buses, vehicles for the differently-abled, and government vehicles, some of which may attract special rates or exemptions.
Tax is payable upon vehicle registration and is usually a one-time payment for 15 years for private vehicles. Meanwhile, tax will be charged on a 5-year basis for commercial vehicles.
- Factors Affecting Road Tax Rates
Several key factors mentioned below influence the Kerala road tax rates:
- Vehicle Type: Private vehicles generally attract a higher rate than commercial ones; the intended use (personal versus business) is a primary factor.
- Fuel Type: Diesel vehicles are usually subject to higher tax rates due to environmental effects. Petrol, CNG, and electric vehicles, on the other hand, benefit from lower rates.
- Engine Capacity: Vehicles are granted different tax slabs according to engine capacity (measured in cubic centimetres or CC), with greater CC attracting higher taxes.
- Ex-showroom Price: The vehicle value is a significant factor affecting the road tax, which is calculated as a percentage of the ex-showroom price.
- Vehicle Age: Brand-new vehicles pay the highest tax rate, but if you are about to register for an old or used vehicle, the tax rate will be different due to emission or environmental concerns.
- Gross Vehicle Weight (GVW): Taxation on commercial vehicles also depends on their carrying capacity, and heavier vehicles attract higher taxation.
- Lifetime Tax, Green Tax, and Exemptions (if applicable)
- Lifetime Tax: Most private vehicles are charged in Kerala with a one-time lifetime tax, usually at their first registration. This is valid for the vehicle for 15 years, after which you have to pay a renewal fee.
- Green Tax: In Kerala, a green tax is imposed on vehicles over 15 years of age to discourage the hazardous use of older, more polluting vehicles and foster environmental sustainability.
- Exemptions: Exemptions may apply to certain armed forces vehicles, vehicles fitted for the disabled, and some government vehicles.
How to Calculate Road Tax in Kerala?
Kerala road tax calculation is based on a structured method that takes into account several parameters. Understanding them is crucial for individuals planning to buy a new vehicle or re-register their old one.
Parameters Used for Road Tax Calculation
The table below discusses the standard parameters used for road tax calculation in Kerala:
| Factor | Description |
| Vehicle Type | Private / Commercial |
| Fuel Type | Petrol, Diesel, Electric, CNG |
| Engine Capacity | CC-based slabs |
| Ex-showroom Price | Tax% on vehicle cost |
| Vehicle Age | New, 5+ years old, resale |
| Weight (Commercial) | Gross Vehicle Weight (GVW) |
Sample Road Tax Calculation for Different Vehicles
Here is an example of how road tax is calculated based on the latest Kerala road tax rates:
| Vehicle | Price | Tax Rate | Road Tax Payable |
| Private vehicles with a purchase price below ₹5 lakh | ₹4,80,000 | 10% | ₹48,000 |
| Private vehicles with a purchase price between ₹5 lakh and ₹10 lakh | ₹7,00,000 | 13% | ₹91,000 |
| Private vehicles with a purchase price between ₹10 lakh and ₹15 lakh | ₹11,00,000 | 15% | ₹1,65,000 |
| Private vehicles with a purchase price between ₹15 lakh and ₹20 lakh | ₹17,00,000 | 17% | ₹2,89,000 |
| Private vehicles with a purchase price above ₹20 lakh | 22,00,000 | 22% | ₹4,84,000 |
| EVs costing less than ₹15 lakh | ₹10,00,000 | 5% | ₹50,000 |
| EVs costing between ₹15 lakh and ₹20 lakh | ₹18,00,000 | 8% | ₹1,44,000 |
| EVs costing more than ₹20 lakh | ₹30,00,000 | 10% | ₹3,00,000 |
| EV two-wheelers and three-wheelers | ₹90,000 | 5% | ₹4,500 |
How to Pay Road Tax in Kerala?
Under the Kerala Motor Vehicles Taxation Act, the state provides two avenues for road tax payment: online and offline.
Online Payment Process
Kerala has made it very convenient for vehicle owners to pay road tax online. Below are the steps for this process.
- Visit the Kerala Motor Vehicles Department website at https://mvd.kerala.gov.in/ or the national Parivahan portal.
- Select the state as Kerala, then move on to the road tax payment.
- Fill in your vehicle number, chassis number and other essential details.
- Review if your insurance and other details are up-to-date.
- Pay using net banking, card, or online payment methods.
- Download the payment made for future reference and personal records.
Offline Payment Options
- Visit the nearest Regional Transport Office (RTO) in Kerala.
- Fill in the road tax payment form at the RTO.
- Along with the payment form, submit any required documents.
- Pay the tax at the RTO cash counter or via a demand draft.
- Collect the payment receipt, which serves as proof of tax payment.
Documents Required for Road Tax Payment
For making any Kerala road tax payments, the following documents are required:
- Registration Certificate (RC) of the vehicle
- Valid vehicle insurance policy
- Purchase invoice of the vehicle
- Owner’s identity proof (Aadhaar, PAN card, etc.)
- Proof of address (utility bill, passport, etc.)
- No Objection Certificate (NOC) in case of vehicles transferred from another state
Keeping these documents handy would enable smooth and trouble-free road tax payment.
Penalties for Late Payment of Road Tax in Kerala
Payment of road tax has to be made on time. Delays can result in heavy fines and even legal consequences. Here’s how penalties are structured:
| Delay Period | Penalty Rate / Fine |
| Up to 30 days | 10% of the tax amount |
| 31-90 days | 15% of the tax amount |
| Beyond 90 days | 18% + legal action (impounding of vehicle or barring its use on public roads) |
Refunds and Road Tax Transfer Rules in Kerala
Vehicle owners must understand the provisions relating to road tax refunds and ownership transfers in Kerala to be in compliance and avoid possible penalties.
Conditions for Road Tax Refund
You may be eligible for a road tax refund in Kerala under certain circumstances, such as:
- Sale of Vehicle: In Kerala, a refund can be claimed if a vehicle is sold to someone in another state where the road tax has also been paid.
- Inter-State Transfer: A refund of the remaining tax paid in Kerala could be claimed when a person moves to another state and re-registers their vehicle there.
- Scrapping: When a vehicle is scrapped or permanently deregistered, a refund is possible for the remaining valid road tax period.
Procedure for Applying Road Tax Refund / Transfer
- You must submit a formal written application to the local RTO along with documents such as a new state registration certificate, tax receipt for the new state, and original Kerala road tax payment receipt.
- Attach copies of the sale deed, RC, and proof of your identity.
- RTO will verify the documents, and the refund will be processed according to the applicable rules. After approval, it is normally credited to your bank account.
Comparison: Road Tax in Kerala vs Other States
Let’s see how Kerala road tax compares with other major states:
| State | Road Tax for Car (₹10L) | Electric Vehicle Tax |
| Kerala | ₹1,30,000 (13%) | Based on the purchase price |
| Delhi | ₹1,00,000 (10%) | 0% |
| Maharashtra | ₹1,10,000 (11%) | 0% |
| Tamil Nadu | ₹1,30,000 (13%) | 0% |
Please note that the Kerala road tax rates are subject to change by the authorities. Thus, before planning a vehicle purchase or re-registering your car, do check the latest applicable rates. Timely payment of road tax enables you to steer clear of penalties and legal hassles. It also allows the government to maintain road infrastructure, which ensures you have a smooth and safe driving experience.
FAQs About Road Tax in Kerala
Q. What is the road tax rate in Kerala for private cars?
The tax rate for private vehicles under 5 lakh rupees is 10% of the ex-showroom price; the more expensive the automobile, the higher the tax rate.
Q. Is there a discount on road tax for electric vehicles in Kerala?
In Kerala, road tax on electric vehicles is based on their purchase price. The road tax for EV two-wheelers and three-wheelers is capped at 5% irrespective of their price.
Q. Can I pay road tax online in Kerala?
Absolutely. The Kerala Motor Vehicles Department and Parivahan’s websites have set up portals for smooth road tax transactions online.
Q. What happens if I delay road tax payment in Kerala?
Delaying payment for road tax results in punitive measures of 10%-18% of the agreed tax amount. Sustained tax evasion would lead to legal recourse.
Q. How is road tax calculated for commercial vehicles in Kerala?
Road tax is based on factors such as the vehicle’s gross weight, usage type, and sometimes the number of seats (for passenger vehicles). For commercial vehicles, the tax is levied on a 5-year basis.
