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Gujarat Road Tax- Know How to Calculate & Pay Road Taxes

Updated on January 17, 2021 , 13334 views

The government of Gujarat is providing better connectivity of roads to villages and other cities. It has enabled the smooth transportation system and uninterrupted flow of goods within the state. The government of Gujarat has upgraded the conditions of the roads and are continuing to do so by coming up with the new construction programmes.

Gujarat Road Tax

Road Tax in Gujarat

The road tax is imposed on all types of vehicles. The state government collects the road tax for transport vehicles and non-transport vehicles and whether it is old or new, every vehicle owner is liable to pay tax. The transportation department of Gujarat imposes and collects the road tax on behalf of the Gujarat government.

How to Calculate Gujarat Road Tax?

Road tax in Gujarat is calculated on multiple factors such as the type of the vehicle, capacity, age, engine, etc. Taxes are can be paid in a lump sum amount, which will keep your vehicle covered throughout the operating time. An individual buys a new or an old car is liable to pay taxes.

Gujarat road tax rates are different from other states and it is one of the simplest road tax structures in the country. A few categories are exempted from the road tax such as tractors used for agricultural purpose, auto-rickshaws and for the person suffering from a physical disability.

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Two-Wheeler Road Tax

Vehicle owners have to pay tax at a flat rate of 6% of the vehicle’s cost. This tax is applicable to newly bought vehicles and their registration in the state of Gujarat. Vehicles up to 8 years old is liable to pay 15% of the lump-sum tax. Older vehicles attract 1% of lump-sum tax paid or Rs. 100, whichever is more.

Road Tax on Four- Wheeler

The road tax on a new four-wheeler in Gujarat is charged at a flat rate of 6% (registered within the state). These charges are only applicable for non-transport vehicles of private ownership.

Vahan Tax in Gujarat

Vahan Tax in Gujarat is determined by the seating capacity and the vehicle cost.

Check the following table for the tax rates:

Types of Vehicle Tax
Motorcycle 6% of the cost of the vehicle
Three, Four Wheeler, LMV, Station Wagon, Private Car, Jeep, Taxi. (Commercial use up to 2000kgs) 6% of the cost of the vehicle
Seating Capacity up to 3 2.5% of the vehicle cost
Seating capacity above 3 and up to 6 6% of the vehicle cost
Goods vehicle having GVW up to 7500 kg 6% of the vehicle cost
Maxi Cab and Ordinary OmniBus (seating capacity7 to 12) 12% of the vehicle cost
Medium Goods vehicle(GVW 7501 up to 12000 kg) 8% of the total cost of the vehicle
Heavy Goods vehicle (*GVW above 12001 Kg) 12% of the cost of the vehicle

*GVW- Gross Vehicle Weight

How to Pay the Road Tax in Gujarat?

The road tax in Gujarat is payable at any RTO offices in the district. You are required to fill a form and submit important documents. The procedure is simple and hassle-free, after completing the payment you will get the Challan receipt. Ensure you keep it safe for future references.


1. Who pays road tax in Gujarat?

A: The Gujarat Government imposes the road tax on owners of both domestic and commercial vehicles. However, if you have purchased your vehicle in another state and are plying it in Gujarat, you have to pay the road tax.

2. What are the factors to be considered while calculating road tax?

A: While calculating the road tax in Gujarat, you will have to consider the price of the vehicle, type, weight, usage, and age.

3. Is the tax collected in installments or lump sum?

A: The road tax is usually collected in the form of a one-time lump sum payment applicable for the vehicle's entire operational period.

4. What is the tax payable for two-wheelers and four-wheelers?

A: Two-wheeler owners have to pay a flat rate of 6% of the vehicles' cost as road tax in Gujarat. For two-wheelers that are more than 8 years old, owners have to pay a flat rate of 15% of the vehicle's price as a tax. If you are the owner of a four-wheeler, you will have to pay a flat rate of 6% of your vehicle's price as a road tax. But for that, you have to purchase the car in Gujarat, and it has to be less than 8 years old.

5. Do I have to pay the tax periodically?

A: Road tax in Gujarat is collected in the form of a lump sum, which applies to the vehicle's operational period.

6. Is the road tax structure in Gujarat different from other states?

A: Yes, Gujarat's road tax structure is different from other states as it has the simplest structure for calculating the road tax and the payment of it.

7. Is there any type of vehicle that is exempt from paying road tax?

A: Yes, owners of vehicles used for agricultural purposes do not have to pay road tax for those automobiles.

8. Do I need to preserve the Challan for the payment of road tax?

A: Yes, it would be best if you preserved the challenge for the payment of road tax as this is payable only one-time for the vehicle's entire operating time.

All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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