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Road tax, known by various names around the world, is a tax which has to be paid on, or included with, a motorised vehicle to use it on a public road.
Every year, the plate number owner has to pay the annual road tax contribution. This tax is based on the engine displacement (0-799cc = fiscal HP 4, above 800cc each 200cc is one class higher). Due to CO2-based regulations, diesel cars with above average displacement (>2,000cc) are favoured, and petrol cars with bigger displacements are put at a disadvantage). A supplementary annual fee has to be paid for cars that run on LPG/CNG (0-799cc: €84/year, 800–2,499cc; €148/year and >2,500cc: €208/year) to compensate financial loss for the state due to the absence of excise at the pump.
Opponents to the car property tax argue that common cars already pay 100% tariff when imported, meaning that a car in Costa Rica is twice as expensive as in the country of origin. Additionally, gas refills include 65% fuel tax. Owning a car that would cost US$7,500 to purchase (in the United States) for seven years can result in the owner paying up to US$29,595 in total taxes (around US$4,227.85 a year). The Ministry of Finance also has the right to step up the fiscal value of a car, effectively a negative depreciation.
By engine displacement:
The motor vehicles tax (called road tax) is calculated on the basis of various factors including engine capacity, seating capacity, unladen weight and cost price. Each state has different rules and regulations for charging the road tax.
There is proposal to have uniform rules and also tariffs across the country in line with the government's initiative of having "One Nation-One Tax".
In these days, in India there is a movement called "Digital India" in which every type of work related to every department is getting digitalized and "Ministry of Road Transport & Highways" has created a portal called "Vahan" for online road tax payment to ease the pain of paying of taxes to the government in offline mode. It is a very smooth experience to pay such taxes from home and saving time.
Motor tax is payable as an annual duty (subject to exemptions) in Ireland. Prior to 2008, the annual tax levy was based on the engine size, and was ranging from €199 pa for <1,000 cc to €1,809 for >3,001 cc. Private cars registered after July 2008 are taxed at the tax rates based on the vehicle's carbon dioxide emissions. The tax bands for CO2 emissions range from €120 Per annum for 0-80 g/km to €2,350 Per annum for >225 g/km. Commercial vehicle tax is based on GVW, regardless of engine size or CO2 emissions, and range from €333 to €900 Per annum. Vintage vehicles are taxed at €56 Per annum; a vehicle is considered vintage 30 years after the date of its first registration.
Personal vehicles pay more than vehicles identified as business use. If the car has been certified as a low-emissions vehicle, under the Japanese low-emission vehicle certification system, the tax obligation is reduced. (Japanese vehicles with 660 cc engines and reduced exterior dimensions) have significant tax advantages because their tax is about a quarter of that of a 1,000 cc car.
The legislation is similar to a European approach to Tax horsepower, while the Japanese approach taxes engine displacement.
| motorcycle | ¥1,500 |
| kei car | ¥2,500 |
| passenger car | ¥5,000 per tonne |
| truck | ¥2,500 per tonne |
As of 1 April 2010, the tax requirements are as follows. The determination of whether the vehicle is for business or personal use has been added, similar to the engine displacement regulations:
| motorcycle | ¥1,600 |
| kei car (125~250cc) | ¥4,300 |
| new kei car | ¥8,100 |
| renewal kei car | ¥2,700 |
| passenger car | ¥5,400 per tonne |
| truck (commercial vehicle) | ¥5,400 per tonne |
| bus | ¥2,700 per tonne |
| motorcycle | ¥1,700 |
| kei two wheel(126~250cc) | ¥4,500 |
| new kei car | ¥8,400 |
| renewal kei car | ¥2,800 |
| passenger car | ¥5,600 per tonne |
| truck (commercial vehicle) | ¥2,800 per tonne |
| bus | ¥2,800 per tonne |
| under 1-litre | ¥7,500 |
| 1-litre–1.4-litres | ¥8,500 |
| 1.5-litres–1.9-litres | ¥9,500 |
| 2.0-litres–2.4-litres | ¥13,800 |
| 2.5-litres–2.9-litres | ¥15,700 |
| 3.0-litres–3.4-litres | ¥17,900 |
| 3.5-litres–3.9-litres | ¥20,500 |
| 4.0-litres-4.4-litres | ¥23,600 |
| 4.5-litres–5.9-litres | ¥27,200 |
| 6-litres and larger | ¥40,700 |
The following table is the tax bracket for lorries or vehicles built with a load carrying section without seats and a single bench seat in the front of the vehicle in an enclosed passenger compartment.
| under 1 tonne | ¥6,500 |
| 1 ton - under 2 tonnes | ¥9,500 |
| 2 tons - under 3 tonnes | ¥12,000 |
| 3 tons - under 4 tonn3s | ¥15,000 |
| 4 tons - under 5 tonnes | ¥18,500 |
| 5 tons - under 6 tonnes | ¥22,000 |
| 6 tons - under 7 tones | ¥25,500 |
| 7 tons - under 8 tonnes | ¥29,500 |
| over 8 tonnes | ¥29,500 + ¥4,700 for each additional tonne |
The following table is the tax bracket for , or vehicles designed to carry many passengers.
| 30 or less | ¥12,000 |
| under 40 | ¥14,500 |
| under 50 | ¥17,500 |
| under 60 | ¥20,000 |
| under 70 | ¥22,500 |
| under 80 | ¥25,500 |
| 80 and over | ¥29,000 |
Private cars are classified as ‘saloon’ vehicles such as hatchbacks, convertibles and sedans, whose road tax rate is different from non-saloon vehicles such as MPV, SUV or pickup trucks.
Also, "company-registered saloon" will have to pay higher tax than the "private-registered saloon" for the same engine displacement. Which does not applied to 'non-saloon'.
In 2012, vehicle tax became a state matter with some states charging the tax, others charging a partial tax (mostly on cars above a certain value) and others such as Morelos and Querétaro, charging no tax.
Income tax is also collected from vehicle registered for rent every year. The rate is determined by Income Tax Act. Vehicle Registration fee, renew fee, vehicle fitness test fee, pollution test fee, route permit fee and other applicable fees are also collected as per the vehicle and transport management act of related provinces.
Motorized vehicles to be used on public roads are required to hold a time based vehicle license that can be purchased for period of 3 to 12 months. Cost varies by vehicle type, fuel and usage. In the case of motorcycles the cost varies by engine size also.
Petroleum (incl ethanol bends), Automotive LPG & Automotive CNG (Which is now largely unavailable), have road tax collected at source, and as such, the retail price of such fuels contains Road tax. Refunds are available on the tax component of fuel used commercially offroad (i.e. Commercial lawnmowing), and fuel used in vehicles paying RUC's (i.e. USA sourced motorhome over 3500kg with petrol engine). Of note, refunds are not available for most non commercial use (such as recreational boating).
Fuels (Petroleum (incl ethanol belnds), Diesel & Biodiesel), sold in the Auckland region have an additional regional fuel tax applied. This is proposed to be removed on 30 June 2024.
Non exempt vehicles using fuels not taxed at source (such as Diesel & Hydrogen), or over 3500kg Gross Laden Weight pay road user charges (RUC) by distance travelled and vehicle weight & configuration band. All light vehicles are in the same 3500kg or Less GVM are in same weight band, but rates are highly varied for heavy vehicles based on vehicle type, weight and axle configuration.
Several exemptions apply to RUC's above
New Zealand has three toll roads. These are publicly owned, and a per use fee is collected via an electronic free flow tolling system (Number plate detection).
A Clean Car Standard is in place, which charges fees to importers of road vehicles which exceed a defined fleet average emissions value.
Previously, a Clean Car Discount was levied on high fuel consumption vehicles, nicknamed a "ute tax", to cross-subsidise electric and fuel-efficient vehicles. This was discontinued at the end or the 2023 year.
Historically, cars in Norway were taxed annually according to an annual motor vehicle tax stipulated by the Norwegian Tax Administration according to the vehicle's type and weight class. The annual motor vehicle tax was replaced by the road traffic insurance tax which came into effect on 1 January 2018 and is paid through the yearly compulsory liability insurance for motor vehicles.
While commonly referred to as a "veiavgift" ("road tax"), no road tax has ever existed in Norway.
| + Tax rate for 2020 The tax must be paid in the following amounts (NOK) per day: !Vehicle type !NOK per day | |
| Car w/ weight below 7500 kg | 8,12 |
| Car w/ weight below 7500 kg, diesel engine without factory installed particle filter | 9,47 |
| Motorcycle | 5,65 |
| Veteran, moped, tractor, taxi (registered), and others | 1,31 |
Although the template for the collection of vehicle property tax depending on the vehicle's type is drafted by the national government, the property tax is owed to the local government in which the vehicle is currently registered and the local council can vote to reduce or to increase the tax owed by a margin (for example, in the year 2018, the local council of the Municipality of Timișoara voted to increase the owed vehicle property tax by 50%, effectively making it the highest in the country)
The framework for calculating the basic vehicle property tax is the following:
gasoline-powered vehicle with an engine of 2000 cc, registered in the mun. of Cluj-Napoca (where there is a 0% markup) will have to pay a yearly vehicle property tax of 180 RON. (Rate: 18 RON/200cc, 2000 / 200 = 10, 18 * 10 = 180 RON). Meanwhile, someone who lives in the Mun. of Timișoara and owns a vehicle that has the same capacity will pay 274 RON (Timișoara has a 50% markup).Another example of a vehicle with a cubic capacity of 3000, registered in Alba county, which has a 16.05% markup: Rate: 144 RON/200cc, 3000 / 200 = 15. Normal Tax owed: 15* 144 = 2160. Tax owed in Alba county (16.05% markup): 2160 * 116.05/100 ~= 2507 RON.
This system of taxation results in incredibly high taxes for vehicles with engines bigger than 3000 cc (Upwards of 6000 RON per year), and low taxes for engines smaller than 2000 cc. As a result, many people have tried to dodge the system either by registering their vehicles in another EU country with smaller taxes, or by converting their vehicles to fit the legal definition of a Utility Vehicle, which is included in category 8 and have a rate of only 30 RON / 200cc instead of 290 RON / 200cc. For example, the owner of a vehicle that has a cubic capacity of 4000 cc will have to pay 5800 RON per year, compared to 480 RON per year owed by someone who owns a pickup truck (also a Utility Vehicle) with the same cubic capacity of 4000. The main legal requirement for a vehicle to be considered a Utility Vehicle is that it must have a cargo area that is separated from the passengers and cannot be accessed from within the vehicle. Many passenger cars (especially SUVs) can easily be modified to fit this requirement by installing a barrier between the trunk area and the back seats.
Hybrid vehicles owners will pay a reduced tax (50% to 100% reduction). Electric vehicle and Classic car owners will pay no tax at all. All vehicle owners get a 10% reduction if they pay the tax before May 1 (which is the deadline for paying the vehicle tax). Physically impaired people and war veterans do not owe any vehicle property tax no matter the vehicle type.
In 1937, the direct relationship that existed between the tax and government expenditure on public roads was cut, the proceeds being treated as general taxation. In the 2015 budget, the government announced that the revenue would once again be used directly to maintain the roads, for the first time since 1937. In the 2018 budget, the government announced a National Roads Fund which would ring-fence VED in England for the improvement of roads. However, it was announced in 2024 that this policy had been cancelled.
Additionally, in Illinois, municipalities are allowed to also impose a vehicle registration fee (known alternatively as a vehicle license, vehicle sticker or a wheel tax depending on the municipality) and collect the funds directly. Chicago, Evanston, Skokie, and a number of suburbs in Chicagoland have their own annual vehicle registration fee. The annual fees vary by municipality and type of vehicle. As of 2025, most of the municipalities with required vehicle registration fees in Illinois require a municipality-specific sticker to be affixed to the front windshield if the vehicle has one. Cook County, Illinois had taxed vehicles that were registered in unincorporated areas until the tax was repealed in 2023. More than forty municipalities in Illinois, mostly in Chicagoland, have eliminated or suspended vehicle registration programs since 1990.
In Massachusetts, the excise tax is billed separately from registration fees, by the town or city in which the vehicle is registered, and was set at the rate of $25 per $1,000 of valuation by a 1980 law called Proposition 2½. The towns and cities are required by state law to bill and collect the excise tax.
The state of Wisconsin allows counties and municipalities to collect an annual municipal or county vehicle registration fee (known as a wheel tax) also, but not directly. These fees are collected by the state of Wisconsin on behalf of the counties and municipalities at the time of registration renewal.
Within some states, the fees may vary from county to county, as some counties have surcharges per vehicle; an example of this is Virginia's personal property tax. New York State, on the other hand, charges a tax based on the vehicle's weight, rather than on its value, which is charged at the time of registration renewal.
In California and New Hampshire, the registration tax is calculated by the current value of the vehicle. As a result, older and more inexpensive vehicles will have a low registration fee, whereas newer and more expensive vehicles will have fees in the hundreds of dollars.
There is also a federal Heavy Vehicle Use Tax (HVUT) or truck tax, for vehicles with gross weights of 55,000 pounds or more, including trucks, truck tractors and buses. Generally, , pickup trucks, panel trucks and the like are not subject to this tax. The tax does not apply to vehicles that are used for 5,000 miles or less (7,500 miles or less for agricultural vehicles) on public highways during a tax period.
Additionally, "New York State imposes a highway use tax (HUT) on motor carriers operating certain motor vehicles on New York State public highways (excluding toll-paid portions of the New York State Thruway). The tax rate is based on the weight of the motor vehicle and the method that you choose to report the tax."
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