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What Is Road Tax?

As roads traverse across various states and nations, the terminology for road tax can vary. Despite the variations in terminology, the purpose remains consistent. This is to collect funds for the upkeep of roads, bridges, and other essential transportation infrastructure, including emergency first-aid services. Knowing about road tax is important as it helps you learn how roadways are maintained and how you can be a part of the government’s initiatives.

Andhra Pradesh Road Tax

Road tax is mandatory in Andhra Pradesh for vehicle owners. It is determined under the Andhra Pradesh Motor Vehicles Taxation Act 1963. The Transport Department of the Government of Andhra Pradesh decides tax rates and regulations of road tax. These rates can be amended from time to time as required by the government. The tax tier varies based on vehicle type, age, and purpose of use, such as commercial or personal. Considering all aspects, owners can pay tax annually or on a lifetime basis.

Who Levies/Imposes Road Tax in Andhra Pradesh?

The jurisdiction of the state government's transport department holds the authority to impose road taxes. They are responsible for overseeing vehicle registration, issuance of driving licenses, road safety measures, and, above all, collection of road taxes. Depending upon the vehicle type, age, and use (personal or commercial), road tax will vary. Vehicle owners who fail to comply with these rules and regulations may carry serious repercussions, including penalties or legal consequences.

Who Has to Pay Road Tax

How to Calculate Road Tax in Andhra Pradesh?

The state government employs standardised methods for road tax calculation. It ensures transparency and consistency across various vehicle types. Several factors influence the road tax calculation. This includes the sitting capacity of the vehicle, its engine cubic capacity, the total vehicle cost, its weight, its desired use (private or public), its purchase date and age (significant for older automobiles or those moving to Andhra Pradesh from other states).


All these factors ensure fair and unbiased road tax results. Furthermore, vehicle owners can access a reliable road tax calculator to determine their liabilities. This calculator is available on the official Parivahan portal.

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The Benefits of Road Tax

The respective state governments usually implement road taxes to serve citizens with several transportation amenities and safety measures. Let us understand the benefits of road taxes and why your government has made them mandatory.

  • It is used to maintain and improve road infrastructure. Be it repairing potholes, integrating streetlights, constructing new highways, or putting up safety measures like traffic signals, road tax makes it all possible.
  • Road tax is often used to fund public services related to transportation. These systems may include pedestrian crossings, footpaths, cycling or bus lanes, etc.
  • Safety measures are integrated with proper planning at sections of the roads. This is a major expenditure carried out by road taxes. From traffic signals to speed cameras, speed measuring devices, digitisation of basic safety features, dividers, etc. - everything is integrated and improved with the funds raised from road taxes. It is also used to enhance already-existing safety measures. Educational campaigns on road safety are also conducted with the help of this fund.
  • Sometimes, governments may use road tax for environmental initiatives. Usually, they encourage vehicle users to reduce carbon emissions and pollution. The administration may promote cleaner transportation options, like electric vehicles, through different programs, banners, etc.
  • Road taxes are designed in a way that maintains equality among individuals. The ones who buy more expensive and heavier vehicles pay more tax. This ensures a fair and balanced distribution of costs.
  • This is a revenue for the state governments, as your local authority mostly charges road taxes. It aids them in rolling out local projects, public services, and other transport system-related initiatives.
  • This tax authenticates the owner's compliance with the registration of their vehicles. It ensures that the individual follows all the regulations and helps governments track vehicles that break the law. Such measures ensure the safety of the citizens.

The maintenance and improvement of road infrastructures are mostly dependent on road taxes. Unless you pay them on time and accurately, the government will not hold any responsibility to serve you with the transportation features. If you play your role appropriately, the government will not back down.

Road Tax Calculation for New Two-Wheelers in Andhra Pradesh

The RTO department has established a specific tax tier level for new two-wheelers. The tax limit varies according to the age of the vehicle. The older your vehicle gets, the less the tax amount becomes. This is applicable for all types of two-wheelers, be it with or without attachments. The tax also varies depending on the engine power of your vehicle.


Do not forget to refer to the updated taxation rates tailored for two-wheelers in Andhra Pradesh because the government may change them from time to time. As the different cost brackets categorise these taxation rates, a balanced policy tailored to each individual financial background is ensured. You can use a dedicated and trusted road tax calculator for two-wheelers to reduce the taxable amount easily.

Road Tax Rates for Two-Wheelers in Andhra Pradesh

Follow the table below to understand the road tax rates imposed by Andhra Pradesh’s RTO Department for two-wheelers.

Classification of Two-wheeler Road Tax Rates
Newly purchased vehicle 9% of the purchased value
Vehicle age up to 2 years 8% of the purchased value
Vehicle age between 2 and 3 years 7% of the purchased value
Vehicle age between 3 and 4 years 6% of the purchased value
Vehicle age between 4 and 5 years 5% of the purchased value
Vehicle age between 5 and 6 years 4% of the purchased value
Vehicle age between 6 and 7 years 3.5% of the purchased value
Vehicle age between 7 and 8 years 3% of the purchased value
Vehicle age between 8 and 9 years 2.5% of the purchased value
Vehicle age between 9 and 10 years 2% of the purchased value
Vehicle age between 10 and 11 years 1.5% of the purchased value
Vehicle age more than 11 years 1% of the purchased value

Please note that these tax rates are applicable only for private vehicles and not commercially used ones.

Road Tax in Andhra Pradesh for Three-Wheelers

Three-wheeler vehicles, like tri-cycles, etc., also follow the same rules as two-wheelers in applying road tax. They are calculated based on the weight of the vehicle, their engine power, and their sitting capacity. The Andhra Pradesh Motor Vehicles Taxation Act 1963 ensures a balanced contribution from all three-wheeler owners and is designed to suit the unique features of this category. This fund is used for the maintenance of roads and their development. Older vehicles are designated lesser road tax in Andhra Pradesh than the newer ones.

Road Tax Calculation for New Four-Wheelers in Andhra Pradesh

The RTO department has also established a fair tax tier for new four-wheelers. The first determining aspect is the purchase cost of the vehicle and how old it is. The government also considers the purpose of the vehicles - commercial or personal use. Additionally, the weight and sitting capacity of the vehicles are also taken into account. Usually, the tax scale is calculated based on the passenger number of up to 10.

Road Tax Rates for Four-Wheelers in Andhra Pradesh

Understand the road tax value for your four-wheeler with the following table. Please note that these values are applicable only for vehicles weighing less than or equal to 2286 kg in unladen weight.

Classification of Four-wheeler Road Tax Rates for Vehicles with a Purchase Value of less than Rs. 10 Lakhs (lifetime) Road Tax Rates for Vehicles with a Purchase Value of more than Rs. 10 Lakhs (lifetime)
Newly purchased vehicle 12% 14%
Vehicle age up to 2 years 11% 13%
Vehicle age between 2 and 3 years 10.5% 12.5%
Vehicle age between 3 and 4 years 10% 12%
Vehicle age between 4 and 5 years 9.5% 11.5%
Vehicle age between 5 and 6 years 9% 11%
Vehicle age between 6 and 7 years 8.5% 10.5%
Vehicle age between 7 and 8 years 8% 10%
Vehicle age between 8 and 9 years 7.5% 9.5%
Vehicle age between 9 and 10 years 7% 9%
Vehicle age between 10 and 11 years 6.5% 8.5%
Vehicle age more than 11 years 6% 8%
Vehicle age more than 12 years 5.5% 7.5%

Please note that these tax rates are applicable only for private vehicles.

Commercial Vehicles Road Tax in Andhra Pradesh

Andhra Pradesh has established a structured road tax tier based on your vehicle type and age. If you have purchased a vehicle for commercial use, be it for carrying goods or passengers, the government will impose a road tax on your vehicle, depending on its age and weight. For vehicles purchased for passenger conveyance, the tax calculator includes both its weightage and sitting capacity. As commercial vehicles form a major part of India’s transportation system, they play a crucial role in the development and maintenance of the network of roads. The commercial vehicle road tax structure is designed to generate revenue while reducing the tax burden on older vehicles.

Road Tax Rates for Commercial Vehicles in Andhra Pradesh

Check the table below to understand the rules and regulations of road tax rates for commercial vehicles in the state.

Classification of Commercial Vehicle Road Tax Rates for Vehicles with a Purchase Value of less than Rs. 10 Lakhs Road Tax Rates for Vehicles with a Purchase Value of more than Rs. 10 Lakhs
Type of Vehicle Age of Vehicle
LMV* Till 3 years 12% 14%
LMV Between 3 and 5 years 11% 13%
LMV Between 5 and 10 years 10% 12%
LMV More than 10 years 9% 11%
MCV** Till 3 years 14% 16%
MCV Between 3 and 5 years 13% 15%
MCV Between 5 and 10 years 12% 14%
MCV More than 10 years 11% 13%
HCV*** Till 3 years 16% 18%
HCV Between 3 and 5 years 15% 17%
HCV Between 5 and 10 years 14% 16%
HCV More than 10 years 13% 15%

*LMV: Light Motor Vehicle

**MCV: Medium Commercial Vehicle

***HCV: Heavy Commercial Vehicle

Road Tax for Other State Vehicles in Andhra Pradesh

There is an 11-month grace period for vehicle owners of other states to operate within the state. As soon as this period elapses, they must fulfil the state's tax regulations. They need to switch their vehicle registration to Andhra Pradesh. The specific road tax tier varies depending on whether it is a two-wheeler, three-wheeler, or four-wheeler vehicle. Vehicle age and type are other factors that influence tax ranges. It is mandatory for other states' owners to comply with state laws and facilitates.

Penalty for Non-Payment of Road Taxes in Andhra Pradesh

If you delay paying road tax within a month after its due date, a penalty will be imposed on you. It is recommended to stay updated with the Andhra Pradesh Motor Vehicles Taxation Act 1963 to be aware of the penalty timeline and amount. When you are operating your vehicle in the state, you are legally bound to pay road taxes. This penalty is charged to ensure the safety of drivers and passengers. Your payable road tax is an aid to the government in maintaining the transportation network and integrating street lights and other basic amenities. This is why complying with the deadline is very important.

Andhra Pradesh RTO Road Tax Online Payment: A Step-By-Step Process

Here is a step-by-step guide to simplify the intricacies of online transactions.

Follow these steps to pay your road tax easily and adhere to fulfilling your road tax obligations.

Step 01
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Visit the official PARIVAHAN website of the Ministry of Road Transport and Highways, Government of India.

Step 02
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Find the “Vehicle Related Services” option in the “Online Services” dropdown.

Step 03
reminder

Select your state and enter your vehicle registration number and RTO.

Step 04
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Under "Online Services," click "Pay Vehicle Tax" and validate your vehicle details by entering the last 5 digits of your chassis number.

Step 05
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Submit the generated OTP and check your tax details.

Step 06
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Select a payment method and complete the transaction to obtain the payment receipt.

Road Tax Online Payment in Andhra Pradesh: How to Do It?

Follow the simple steps below to pay Andhra Pradesh road tax online:

01

Visit the official RTO website.

02

Navigate to the Online Payment section.

03

Provide vehicle details.

04

Verify the calculated amount.

05

Select the preferred payment method.

06

Complete the transaction.

Road Tax Offline Payment in Andhra Pradesh: How to Do It?

If you are not comfortable with online payment methods, you can opt for offline options anytime. Here are the steps to follow for the same:

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Frequently Asked Questions (FAQs)

Can I drive vehicles from other states in Andhra Pradesh without paying road tax?

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There is no immediate obligation to pay road taxes for vehicles registered other than in Andhra Pradesh. You can seamlessly navigate within Andhra Pradesh for up to 11 months. However, after that period, you will need to register your vehicle with the Andhra Pradesh Government and pay the required tax.

What benefits does comprehensive auto insurance provide with recently purchased vehicles?

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It protects your vehicle against various risks, including natural disasters, damage, etc. Furthermore, it covers the cost of repairs or replacement, providing peace of mind with your significant investment.

How can I verify my vehicle registration in Andhra Pradesh?

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You can visit the official Transport Department site of the Government of Andhra Pradesh site to verify your vehicle's registration.

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