If you’re a vehicle owner, Road Tax Update October 2025 brings important changes that could affect your annual costs. With updated rates, a slight road tax increase, and revised renewal fees, staying informed is key to avoiding unexpected expenses. Let’s break down what’s new, how much more you might be paying, and what you should do to stay compliant.
Key Highlights of the Road Tax Update October 2025
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Higher road tax rates for older and high-emission vehicles
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Discounts for EVs and hybrid vehicles extended
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Updated renewal process, including online options
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Grace period reduced from 30 days to 15 days
New Road Tax Rates (Effective October 2025)
The table below shows the revised rates under Road Tax Update October 2025:
| Vehicle Type | Previous Rate (₹) | New Rate (₹) | Change (%) |
|---|---|---|---|
| Small petrol car (up to 1200cc) | 4,000 | 4,400 | +10% |
| Large petrol car (above 1200cc) | 7,500 | 8,250 | +10% |
| Diesel car (all sizes) | 8,000 | 8,800 | +10% |
| Electric vehicle | 0 | 0 | No change |
| Two-wheeler | 1,500 | 1,650 | +10% |
This road tax increase mainly targets high-emission vehicles, aligning with the government’s green mobility goals.
Renewal Fees and Process
Renewing your vehicle tax in 2025 is easier but comes with some adjustments:
| Renewal Category | Old Fee (₹) | New Fee (₹) |
|---|---|---|
| On-time renewal | 300 | 350 |
| Late renewal (within grace period) | 500 | 600 |
| Late renewal (after grace period) | 1,000 | 1,200 |
Online renewal portals now accept UPI, net banking, and major wallets for smoother payments.
You can set up reminders via SMS and email to avoid missing deadlines.
How the Road Tax Update October 2025 Impacts You
The Road Tax Update October 2025 affects different owners in different ways:
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Petrol and diesel vehicle owners: Expect a 10% hike in your tax rates
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EV owners: You continue to benefit from zero road tax under current policy
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Businesses with fleet vehicles: Budget for increased renewal fees
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New buyers: Check updated rates before making a purchase decision
Tips to Handle the Road Tax Increase
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Consider switching to electric vehicles to avoid higher taxes
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Renew your tax early to save on renewal fees
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Make use of digital renewal options to skip queues and paperwork
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Set calendar reminders to meet the 15-day grace period for renewals
Frequently Asked Questions
Why has the road tax increased in October 2025?
The road tax increase aims to promote cleaner vehicles and generate funds for infrastructure improvements and pollution control.
Are electric vehicles exempt under Road Tax Update October 2025?
Yes, electric vehicles continue to enjoy tax exemptions in most states as part of the Road Tax Update October 2025 to encourage sustainable transport.
Can I still renew my road tax offline?
Yes, while online renewal is encouraged, offline renewal at regional transport offices (RTOs) is still available. However, expect longer processing times.
What happens if I miss the new 15-day grace period?
If you miss the grace period, higher renewal fees apply, and you may also face penalties or restrictions on using your vehicle on public roads.
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