Starting 2025, vehicle owners in Kerala will have to navigate a new set of road tax rules. The state government has officially revised the Kerala Vehicle Tax 2025 Update, with changes affecting both new vehicle buyers and existing vehicle owners. Whether you’re planning to buy a car, a bike, or a commercial vehicle — this article walks you through what’s changing and what you should be prepared for.
Why the Update?
The RTO road tax revision Kerala aims to:
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Increase state revenue to support infrastructure upgrades
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Encourage environment-friendly vehicle choices
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Streamline tax structures for better transparency and compliance
Key Highlights of the Kerala Vehicle Tax 2025 Update
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New road tax slabs introduced for private and commercial vehicles
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Electric vehicle (EV) owners will benefit from extended tax concessions
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Revised RTO charges for registration, ownership transfer, and fitness certification
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Penalties for late tax payments have increased
Updated Road Tax Slabs (2025)
Private Vehicles
| Vehicle Cost (Ex-Showroom) | Road Tax (% of Cost) |
|---|---|
| Up to ₹5 lakhs | 8% |
| ₹5 lakhs – ₹10 lakhs | 10% |
| ₹10 lakhs – ₹15 lakhs | 12% |
| Above ₹15 lakhs | 15% |
Two-Wheelers
| Engine Capacity | Road Tax (% of Cost) |
|---|---|
| Up to 150cc | 6% |
| 151cc to 500cc | 8% |
| Above 500cc | 10% |
Commercial Vehicles
| Vehicle Type | Tax Per Year |
|---|---|
| Light Motor Vehicle (LMV) | ₹6,000 – ₹10,000 |
| Heavy Motor Vehicle (HMV) | ₹15,000 – ₹25,000 |
| Tourist Buses | ₹20,000 – ₹40,000 |
EV Owners – You’re in Luck
The RTO road tax revision Kerala brings good news for electric vehicle owners:
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100% road tax exemption extended until December 2025
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Special rebates for e-autos and e-bikes
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Lower RTO service charges on EV registration
Other Notable RTO Rule Changes
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Ownership Transfer Fee: Increased to ₹750 for private vehicles
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Fitness Certificate: ₹1,000 for private, ₹2,500 for commercial
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Green Tax: Applicable to vehicles older than 15 years
What This Means for You
Whether you’re buying a vehicle or renewing your road tax, these new rules could impact your budget and choices. Here’s what you should do:
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Plan your vehicle purchase keeping in mind the new slabs
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Check online RTO portals for updated charges
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Consider electric vehicles to take advantage of tax waivers
FAQs
1. Who does the Kerala Vehicle Tax 2025 Update apply to?
The update applies to all vehicle owners in Kerala—private, commercial, and two-wheeler owners included.
2. Will EV owners continue to enjoy tax exemption in 2025?
Yes, electric vehicles will remain 100% exempt from road tax until December 31, 2025.
3. Are the new tax rates applicable to existing vehicle owners?
No, the new slabs apply only to new vehicle registrations from January 1, 2025. However, revised fees (like green tax, fitness fees) may affect older vehicles.
4. Where can I pay my revised road tax?
You can pay the updated road tax through the Motor Vehicles Department’s online portal or at the nearest RTO office in Kerala.
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