Odisha road tax

In summary

Odisha road tax for new private cars ranges from 6% to 20% of the vehicle cost. The rate rises with the car’s price and is generally paid as a one-time tax during registration.

• Cars costing up to Rs. 5 lakh attract 6% road tax.
• Cars above Rs. 5 lakh and up to Rs. 10 lakh attract 8%.
• Cars above Rs. 10 lakh and up to Rs. 20 lakh attract 10%.
• Cars above Rs. 20 lakh and up to Rs. 40 lakh attract 12%.
• Cars costing above Rs. 40 lakh attract 20% road tax.
• Used-vehicle tax may vary by age and original vehicle cost.

Road tax increases the final on-road price along with registration fees, insurance, FASTag, and applicable dealer charges. Buyers should confirm the payable amount through the Odisha Motor Vehicle Department or their local RTO before booking. Odisha also allows eligible vehicle tax payments through the Parivahan portal.

A car loan from Bajaj Finance can finance up to 100% of the eligible on-road price, including road tax, subject to approval. Flexible repayment options can help you manage the purchase without using all your savings.

You may already have an eligible offer. Check your pre-approved new car loan offer and move closer to purchasing your new car.

What is road tax in Odisha? 

Road tax in Odisha is a state-levied tax imposed under the Odisha Motor Vehicles Taxation Act. For most new private vehicles, it is collected as a one-time tax when the vehicle is registered. Every registered vehicle must pay the applicable amount at the Regional Transport Office or through the authorised online registration system. The revenue collected helps fund road construction, repairs, maintenance, and transport infrastructure across Odisha. 

The payable tax depends on factors such as the vehicle’s value, category, age, and intended use. Petrol, diesel, CNG, and electric vehicles may have different applicable rates, concessions, or exemptions under current state rules. Therefore, buyers should check the latest tax schedule before registration. Road tax is separate from the ex-showroom price and forms part of the vehicle’s total on-road cost.

How is road tax calculated in Odisha? 

Odisha calculates road tax using factors such as the vehicle type, ex-showroom price, engine capacity, fuel type, age, and intended use. Private cars, two-wheelers, electric vehicles, and commercial vehicles may follow different tax structures. Commercial vehicle tax can also depend on its route and usage.

For private four-wheelers, the applicable road tax mainly increases with the vehicle’s ex-showroom price. The listed rates are 6% for vehicles below Rs. 50,000, 8% for vehicles priced between Rs. 50,000 and Rs. 10 lakh, 10% between Rs. 10 lakh and Rs. 20 lakh, 12% between Rs. 20 lakh and Rs. 40 lakh, and 20% above Rs. 40 lakh.

For example, if a new private car has an ex-showroom price of Rs. 8 lakh, an 8% tax rate would result in a one-time road tax of Rs. 64,000 at registration. The exact amount may vary based on the applicable vehicle category and current state rules.

Since road tax forms part of the on-road price, it can increase the amount needed at purchase. 

Road tax rates for new cars in Odisha 2026

When buying a new car, Odisha road tax can be a significant part of the total cost. New cars are subject to road tax, which is calculated based on various factors such as engine capacity, car type, and its price. For instance, small cars might have a lower tax rate, while larger vehicles like SUVs will attract higher taxes. Have you considered these additional costs when planning for your new car?

If you're eyeing a new car in Odisha, make sure to check the road tax amount before finalising the purchase. Don’t let this cost surprise you after the deal is done. Instead, plan ahead and consider financing options that can help cover all these expenses.

Here’s a breakdown of the road tax for new private four-wheelers in Odisha:

How to pay Odisha road tax online?

Paying Odisha road tax has never been easier. The Odisha Transport Department allows online payments, so you can settle the tax without having to visit an office. Here’s how to do it:

Visit the official e-Vahan website at https://parivahan.gov.in/ and enter your vehicle details.

Navigate to the 'Online Services' section and select ‘Pay Vehicle Tax’.

Enter your vehicle registration number and other required details.

The portal will display your vehicle’s information and any outstanding tax dues.

Proceed with payment using a debit card, credit card, or net banking option.

After successful payment, you will receive an electronic receipt for your records.

This simple online process saves you time and makes paying road tax more efficient.

Road tax in Odisha plays a major role in determining your car’s final price. It is a cost that must be considered while planning your purchase. Although it may increase your expenses, you can manage it effectively with the right financial support.

Bajaj Finance New Car Loans allow you to finance up to 100% of your car’s on-road price, including road tax. With simple eligibility conditions, flexible tenures, and competitive car loan interest rates, buying a new car becomes easier.

Check your pre-approved new car loan offer now and choose a vehicle that suits your needs and budget. If you need help with funding, explore the loan options from Bajaj Finance today.

Penalties for late road tax payment in Odisha

Late payment of road tax in Odisha can result in a penalty in addition to the outstanding tax. Under the Odisha Motor Vehicles Taxation Act, the taxing authority may impose a penalty when the tax remains unpaid beyond the prescribed due date. The unpaid tax and penalty may be recovered from the vehicle owner, and the vehicle may face enforcement action until the dues are cleared. The exact penalty depends on the vehicle category, applicable tax period, and duration of the delay. Vehicle owners should pay the tax on time through the Odisha Transport Department or the authorised Parivahan portal and retain the payment receipt for future reference.

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