Owning a car comes with great responsibilities and compliances when it comes to India. You need to pay certain taxes to the government to run your car on the road legally. Road tax in Punjab is a similar tax to any other road tax that the government asks you to pay if you own a vehicle. The reason this amount is paid is to make and maintain the infrastructure of roads in the particular state.
Just like any other state, Road tax in Punjab has its own tax slabs and rules for different vehicles. In this blog, we will talk about different road tax slabs in Punjab, who needs to pay it, how you can calculate it, and pay road tax in Punjab.
How is Road Tax Calculated in Punjab?
Punjab, like other states in India, has its own tax slabs depending upon vehicle category, vehicle cost, type, and fuel. The rates were revised in 2024 by the Transport Department. You can take a quick look at the updated structure.
| Vehicle Type | Vehicle Price (Ex-Showroom) | Road Tax Rate (Approx.) |
| Cars / Four-Wheelers | Up to ₹15 lakh | 9.5% of actual cost |
| ₹15–25 lakh | 12% | |
| Above ₹25 lakh | 13% | |
| Two-Wheelers | Up to ₹1 lakh | 7.5% |
| ₹1–2 lakh | 10% | |
| Above ₹2 lakh | 11% or ₹22,000 (whichever is higher) |
For cars, Punjab also has a 2% category for small private vehicles under older valuation norms, which is often referenced in official documents. However, under the new revision, the slabs are mostly percentage-based. If you’re buying a car through a dealer, your on-road cost already includes this tax, so you won’t have to calculate it manually.
Things That Affect Road Tax in Punjab
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People often think road tax is just a flat fee, but that’s not how it works. The amount changes based on a few things:
- Type of vehicle: Two-wheelers, four-wheelers, or commercial.
- Fuel type: Diesel vehicles usually pay a bit more than petrol ones.
- Vehicle price: The higher your car’s value, the higher your tax bracket.
- Purpose: Private vs commercial use.
- City or district: Some urban areas charge slightly higher due to infrastructure usage.
Keep in mind that the vehicle’s base cost is not the total invoice value but its actual price before GST. This can actually make a difference for luxury cars or discounted vehicles.
Road Tax for Electric Vehicles in Punjab
Here’s some good news for people who are planning to buy an EV in Punjab. Under the Punjab Electric Vehicle Policy 2023, all electric vehicles registered within the policy period are completely exempt from road tax and registration fees.
It means you don’t have to pay any road tax on your electric car or scooter. It’s a big initiative from the state government to encourage cleaner mobility. However, this exemption is valid for three years from the notification date. So, if you’ve been thinking about switching to an EV, this is probably the best time to do it.
You can read about EV maintenance costs here.
How to Pay Road Tax Online in Punjab?
Now let’s talk about something everyone wants to know: how to pay road tax online? Punjab has made the process quite simple with its online payment portal.
Step-by-Step Process
- Go to the official Punjab Transport Department portal.
- Click on the “Online Vehicle Services” or “Pay Road Tax” section.
- Enter your vehicle registration number and basic details.
- The system will automatically calculate your pending road tax.
- Choose your payment method: debit card, UPI, or internet banking.
- Once paid, download the digital receipt for your records.
If you prefer doing things traditionally, you can still visit your local RTO office with your RC, invoice, and ID proof and pay by cash or demand draft. But the online method is smoother and faster, especially if you’re renewing road tax for an existing vehicle.
You can read about eChallan Punjab: How to Easily Pay Your Traffic Fines Online too.
Road Tax Refunds in Punjab
Here’s a part many people don’t talk about, but it’s actually quite important. Road tax refunds. You can claim a refund if:
- You’ve shifted your vehicle permanently from Punjab to another state and re-registered it there.
- Your vehicle has been scrapped or deregistered.
- You’ve paid excess road tax by mistake.
To apply for a road tax refund, visit your local RTO with proof of deregistration or re-registration (like the new RC from another state), your old payment receipt, and an application form for refund. The amount refunded is proportional to your remaining registration period.
Example: If your car’s registration was valid for 15 years and you moved out after 5, you might get a refund for the remaining 10 years after deductions.
This is where your road tax receipts become crucial. Always keep a copy of the payment document. It makes refund claims easier and faster.
Common Mistakes People Make While Paying Road Tax
The process looks simple, but sometimes people end up paying the wrong amount or even missing deadlines. Here are some common mistakes that you should avoid while paying tax.
- Ignoring the correct vehicle cost base (ex-showroom, not on-road).
- Forgetting to renew the tax on time can attract penalties.
- Not checking the exemption status if you own an EV or hybrid vehicle.
- Missing address updates after moving cities within Punjab.
- Losing the digital payment receipt, which you’ll need for re-registration or resale.
Always double-check these details before you hit the “Pay” button.
Penalties for Late Road Tax Payment
If you fail to pay road tax on time, the penalty can range from ₹1,000 to ₹5,000 depending on the delay. In extreme cases, your RC can even be blocked or your vehicle seized for non-payment.
So, pay your road tax on time and keep your documents safe. It not only keeps your car legal but also avoids unnecessary headaches later.
Conclusion
Road tax in Punjab is very easily payable if you understand your category and slab. Now, without even visiting the RTO, both new car owners and existing owners can pay the tax through an online process. You just need to keep track of your payment receipts, stay updated on tax slabs, and if you move or scrap your vehicle, then check for the refund policy. Overall, it’s become very easy for anyone to understand and pay the road tax in Punjab.
And if you’re an EV buyer, make the most of the current tax exemption. It’s not going to last forever.
FAQs
1) How much is the road tax in Punjab?
Here’s the thing. Punjab charges on the ex-showroom price. Cars are roughly 9.5% up to ₹15 lakh, 12% from ₹15 to ₹25 lakh, and 13% above ₹25 lakh. Two-wheelers are 7.5%, 10%, then 11% or ₹22,000, whichever is higher. Fuel type and private vs commercial can tweak it, and EVs under the state policy get a limited-period waiver.
2) What is the tax on a ₹10 lakh car?
Plan for about 9.5% of ex-showroom, so around ₹95,000 in Punjab. The exact number can move a bit with fuel type and whether it is private or commercial. This sits apart from insurance, RTO fees, plates, and dealer add-ons, which make up your final on-road price.
3) How do I check how much road tax I owe?
Skip guessing. On the Punjab Transport Department site, open Online Vehicle Services, enter your registration number, and the portal shows pending or applicable tax. Parivahan works too. Choose Vehicle Related Services, pick Punjab, then Tax Payment or View Tax Details. Always download and save the receipt.
4) How to calculate the road tax formula?
Keep it simple. Road Tax = ex-showroom price × rate ÷ 100. Example, ₹10,00,000 at 9.5% comes to ₹95,000. Use ex-showroom only. If the dealer discounts ex-showroom, tax usually applies on the final invoiced ex-showroom value.
5) Which state has the lowest RTO tax?
There is no forever winner, but Jharkhand, Arunachal Pradesh, and Himachal Pradesh are usually lower for private vehicles. Metro-heavy states like Maharashtra, Karnataka, and Delhi tend to be higher. EV waivers and time-bound state notifications can flip the math, so check the current slab before you buy.
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