Road Tax in Mumbai

1. Repair and resurfacing, upgrading, and niche existing roadways

1. Purchase of road safety equipment

1. Enhancements of the traffic management systems

1. Supporting plans for large infrastructure improvements such as bridge and flyover applications

As a large city with significant daily traffic, a growing volume of vehicles, and a considerable flow of people and goods, the road tax system supports existing road conditions, road safety, and assists in managing infectious congestion levels.

Who is Required to Pay Road Tax in Mumbai

While the payment process for road tax differs between the Central and State governments, the main payment is typically made to the State where you purchased and operate your vehicle. In Mumbai, this tax is administered by the Maharashtra government, and you are required to pay if you purchase, register, or use a vehicle in Mumbai.

There are primarily three groups of vehicle owners that the Mumbai Road Tax applies to:

1. Owners of New Vehicles Registered in Mumbai

Any person who purchases a new bike or car from Mumbai will pay the applicable State road tax when they register the vehicle alongside the other registration charges. This tax is calculated typically based on a percentage of the vehicle cost that is set by the Maharashtra Government.

1.  Vehicle Owners Transferring Their Registration from Another State

If you move to Mumbai from a different State, you are required to pay Maharashtra's road tax when you move your vehicle into the city and within the month of each move. For example, if you moved from Maharashtra to Hyderabad, or vice versa, you would have to pay a road tax in each State when you re-registered your vehicle. It is important to see that every single State collects money from its own roads infrastructure each time it is transacted in.

1. Commercial Vehicle Owners

All commercial vehicles, including taxis, buses, goods carriers, and vehicles utilized in business transport, are required to pay road tax under State rules. Charges may be a recurrent fee (usually on an annual basis) and are often related to seating capacity, purpose of use, or type of classification of the vehicle. Commercial vehicles exert a notably heavier toll on urban roads, which is accounted for in the tax structure.

Note: While the Central Government is only responsible for national highways, the State Municipal Corporation is responsible for local roads and some State roads. Thus, road tax is used to pay for the infrastructure, safety system, and road improvement projects in the State of Maharashtra.

How is Road Tax Calculated in Mumbai

Similar to other States in India, Mumbai takes into consideration several key parameters when finalizing the total road tax amount. These parameters are a critical part of deciding the precise fee when first registering the vehicle and in the vehicle's subsequent registrations.

The major parameters used for the calculating the Mumbai Road Tax include:

1. Vehicle Price (ex-showroom price): The tax will generally be calculated as a percentage of the vehicle's ex-showroom price, where higher priced vehicles will incur a higher road tax. Cars and two-wheelers are taxed differently depending on price brackets, whereby there are higher slabs of tax for higher priced vehicles.

1. Engine Size (cc): In Mumbai, two-wheelers are taxed by engine size. Ordinarily, the smallest engines (up to 99 cc) are charged the least, and the larger the engine size, the greater the tax percentage. This tax model means that vehicles that burn more fuel and create more environmental externalities are charged higher during registration.

1. Vehicle Class (private or commercial): Private vehicles generally have lower road tax than commercial vehicles. Commercial vehicles - such as taxis, buses, electric supplies, trucks, and equipment carrying, follow separate invoices, sometimes by number of seats allowed for what they are transporting or the rate of any passengers. There may be additional annual or recurring taxes or levies for commercial categories.

1. Age of Vehicle (new vs. transfers): New vehicles in Mumbai incur a one-time lifetime tax at the time of registration. Older vehicles or subsequent registrations are taxed from a percentage of their removal, which is a variable amount that declines with age. It appears that the older you get, the upper tax does not continue to tax, putting fair implementation towards vehicle procedures.

1. Fuel Type (petrol, diesel, CNG, LPG, or electric): Tax rates change depending on what kind of fuel the vehicle uses. Highway petrol and diesel are taxed by slab, and diesel cars tend to be taxed at a higher percentage than petrol. CNG and LPG enjoy a slightly better tax slab. Electric vehicles in Maharashtra may be eligible for full exemption or reduced rates.

Mumbai Road Tax Rates (2026)

The Mumbai Road Tax Rate for the year 2026 is determined by the age, type, and capacity of vehicle and how it is intended to be used. Here is the detailed list:

New Two-Wheelers (Based on Engine Capacity)

The tax for new two-wheelers is calculated as a percentage of the vehicle cost, with a minimum floor for small engine bikes. Higher engine capacities attract slightly higher rates.

Subsequent Registrations for Two-Wheelers (Depreciation-Based)

For older two-wheelers, the road tax is reduced progressively based on the age of the vehicle. This table helps calculate applicable rates for subsequent ownership or renewal.

Calculation of Three-Wheeler Road Tax in Mumbai

New Three-Wheelers (Based on Passenger Capacity)

Three-wheelers’ road tax depends on their passenger-carrying capacity. Vehicles carrying more passengers incur higher taxes.

Subsequent Registrations for Three-Wheelers

For three-wheelers older than one year, depreciation-based rates are applied for subsequent registration or resale.

Calculation of Car Road Tax in Mumbai

Initial Registration for Four-Wheelers

For new cars, the road tax is calculated as a percentage of the vehicle cost, with higher rates for diesel vehicles and more expensive cars.

Mumbai Road Tax for Commercial Four-Wheelers (Subsequent Registrations)

The tax for older commercial vehicles is applied annually and reduces over time as the vehicle ages

Mumbai Road Tax for Other State Vehicles

Commercial Omni Buses

Omni buses and other vehicles brought from outside Maharashtra have tax calculated based on cost, fuel type, and seating capacity. Rates differ for AC, non-AC, and standee seats.

Note: Vehicles from other states can be driven in Maharashtra without paying local tax for up to 11 months. Beyond this period, re-registration in Maharashtra and payment of lifetime tax is mandatory.

Mumbai Road Tax for Commercial Four-Wheelers (Passenger Capacity)

Commercial vehicles are also subject to road tax based on their category and passenger-carrying capacity. The following table outlines the annual road tax rates for contract carriage vehicles, such as auto-rickshaws, cabs, and taxis:

These rates ensure that commercial operators contribute fairly to the upkeep and development of Mumbai’s road infrastructure. The tax amount increases progressively with passenger capacity, reflecting the greater impact larger vehicles have on traffic and road wear.

How to Pay Road Tax in Mumbai?

Mumbai Road Tax Offline Payment Process

Step-by-Step Process for Paying Mumbai Road Tax Offline 

1. Step 1: Visit Your RTO Office: Go the RTOs jurisdiction covering your vehicle registration and bring the following required documents: Vehicle Registration Certificate (RC), Proof of Identity (Aadhaar, PAN, or Passport), Proof of Address, and Vehicle Insurance Certificate

1. Step 2: File Documents: Fill and submit the documents with the RTO staff and ask them to calculate the applicable road tax based on the vehicle type, usage, and registration.

1. Step 3: Make Payment: Once the RTO has calculated the tax obligation, make the payment via accepted means, either as a challan, cash or through other authorised payment means.

1. Step 4: Get Payment Receipt: Once accepted, the RTO will grant a receipt or acknowledgment. Keep this receipt as proof of payment received. The receipt will serve as proof of payment and may be usable for vehicle transactions or legal needs later.

Mumbai Road Tax Online Payment Process

Paying your Mumbai road tax online is fast, secure, and easy to do. Vehicle owners can complete the payment through the Parivahan website without going to the RTO in person. Below is a step-by-step process:

1. Step 1: Go to the official website of the Parivahan Vahan Services.

1. Step 2: From the dropdown menu, select Maharashtra and then the applicable RTO in Mumbai, and click 'Proceed'.

1. Step 3: Click on 'RC Related Services' from the main menu.

1. Step 4: From the dropdown, select 'Pay Your Tax'.

1. Step 5: Enter Your Vehicle Details. Provide your vehicle registration number, engine number, and other required details.  Verify the information carefully.

1. Step 6: Pay the road tax online via any of the available methods (debit/credit card, net banking or UPI).

1. Step 7: Download and Save the Receipt. Once you have successfully paid your road tax, download and save the receipt to keep it for any future reference and to ensure legal compliance.

How to Find the Amount of Your MV Tax in Mumbai Online

Before making any online payment for your Mumbai road tax, it is essential to ascertain what the exact motor vehicle (MV) tax amount is for your vehicle. The government of Maharashtra has a very user-friendly online facility leveraging the Vahan Services you can use as a vehicle owner, to figure out how much periodic road tax you may owe without having to visit your local RTO office. To check for your own Mumbai road tax, follow the steps below.

1. Step 1: Visit the Vahan Services Portal. Go to the official Vahan portal for Mumbai RTO services on the webpage.

1. Step 2: Select Option 'Know Your Tax Amount'. On the menu, select the 'Know Your Tax Amount' option, which will allow you to find all outstanding road tax that you owe as well as the exact amount you owe for the vehicle you have registered.

1. Step 3: Submit your Vehicle Details. On the page that opens, fill in the required details, such as: Your vehicle registration number, and the captcha code (any letters or numebers you see on the screen). 

1. Step 4: Once you have entered your vehicle registration number and captcha, click 'Get Tax Details'. This will provide you with the amount of road tax you owe along with any penalty or arrears that have accumulated over time.

Important note: For vehicles classified as private vehicles, select option 'Motor Cab' for the tax type, and then select 'Light Motor Vehicle' in the next field, to make sure that the calculation is appropriate for your private vehicle. 

Penalty for Non-Payment of Road Tax in Mumbai

Timely payment of your Mumbai road tax is not a statutory obligation. It prevents penalties, late fees, and possible legal issues. The Maharashtra Motor Vehicles Tax Act includes strict deadlines, and not meeting the deadlines can incur significant fines.  The penalty structure is as follows: 

1. First Time Offenders: If a vehicle owner fails to pay their road tax on time, the penalty will be equal to two quarters of tax. The minimum penalty for first-time offenders is Rs.300. However, the penalty cannot exceed the amount payable for the annual road tax for the vehicle.

1. Repeat Offenders: Repeat offenders who do not pay their road tax will incur more substantial penalties. The fine for repeat offenders cannot be less than the annual road tax for the vehicle and may even double, based on the period of non-payment and discretion of the RTO authorities.

Consequences of Non-Payment of Mumbai Road Tax

1. Suspension of Vehicle Registration: The RTO may suspend the registration, which means that the vehicle would not be legally registered to drive.

1. Legal Action: The authorities may take legal action against the offenders, which could even include seizing the vehicle to recover unpaid taxes.

1. Accumulation of Penalties: Penalties accumulate over time. Thus, it is best to pay on time to avoid delays.

Road Tax Refund in Mumbai

Vehicle owners in Mumbai can be entitled to road tax reimbursement under certain conditions. The reimbursement can generally be claimed where tax was paid in advance, and the vehicle was sold, deregistered, not used or non-utilized. A thorough understanding of the rules helps ensure owners receive proper reimbursement.

1. Vehicle Sold or Registered Outside of Maharashtra

If a vehicle registered in Mumbai is sold and registered in another state in India, a road tax reimbursement claim may be made for any road tax that was paid in advance and was not used. A reimbursement claim of usually prorated will be based on the remaining period of paid road tax.

1. Vehicle Deregistered or Not Used

If the owner of a vehicle deregisters or hands the certificate of taxation back or otherwise declares it as not in use on public routes (i.e. is being privately used), the owner is entitled to receive reimbursement for services not used. Refunds are prorated per remaining months of prepaid tax, not necessarily strictly 1/12 for all categories (some categories may differ).

1. Paying Excess Tax

If a vehicle owner has paid excess road tax based on an incorrect amount or application to that vehicle (i.e. reclassification of vehicles), they can also claim road tax reimbursement for the excess amount paid. You will be required to provide sufficient proof of payment and an original tax certificate.

How to Request a Refund for Road Tax in Mumbai

To apply for a Refund of Road Tax in Mumbai, please complete the following steps:

1. Step 1: Gather all the necessary documents, such as the original tax certificate, proof of sale (if required), deregistration certificate or proof of non-use, and the original payment of receipt for taxation.

1. Step 2: File an application for a refund at the local RTO where the vehicle is registered and specify the reason for refund, accompanied with entire documents.

1. Step 3: The RTO will verify the documents and refund the amount calculated based on unused period or over payment for taxation.

1. Step 4: If approved, the refund will be processed and remitted to the bank account listed on the application, or by cheque.

RTO Offices in Mumbai

Mumbai, a major metropolitan city, is served by 5 Regional Transport Offices (RTOs) that offer vehicle registration, collection of road tax, and other transport services. Vehicle owners will need to visit the RTO for their area for anything legal or official. List of major RTO offices with location in Mumbai:

Conclusion

To sum up, in Mumbai, paying road tax is important to follow the law and necessary for the transport ecosystem of the city. Road tax is determined by your vehicle type, engine capacity, fuel, cost of the vehicle, and how you use it. Road tax can be paid online or at your local RTO.

It is important to stay up to date with your road tax since this ensures your compliance with the law. Financial penalties will be avoided, and the funds will help maintain and develop the roads, bridges, and traffic planning systems in Mumbai. By fulfilling this obligation, the vehicle owner is providing a safer, smoother, and effective travel experience for other citizens in the city.