Road tax, known by various names around the world, is a tax which has to be paid on, or included with, a motorised vehicle to use it on a public road.
National implementations Australia Road tax in Australia was a charge calculated on a per ton, per mile basis on goods vehicles until the Razorback Blockade which occurred in April 1979. Road tax was abolished in response to the blockade and was replaced by fuel excise and changes to the vehicle registration costs.
All states and territories require an annual vehicle registration fee to be paid in order to use a vehicle on public roads; the cost of which varies from state to state and is dependent on the type of vehicle. The fee is known colloquially as 'rego' (pronounced with a soft g, short for registration). Queensland road tax is based on the number of cylinders or rotors the vehicle's engine has. There is also a small traffic improvement fee. New South Wales road tax is paid based on the vehicle's tare weight.
Belgium Passenger cars pay a registration fee based on the engine displacement and power output (degressive towards 2014 (66% in 2012, 33% in 2013, 0% in 2014) and environmental criteria such as CO2 g/km output (increasingly towards 2014). The more CO2 g/km the car produces, the higher the fee will be.
Every year, the plate number owner has to pay the annual road tax contribution. This tax is based on the engine displacement (0-799cc = fiscal HP 4, above 800cc each 200cc is one class higher). Due to CO2-based regulations, diesel cars with above average displacement (>2,000cc) are favoured, and petrol cars with bigger displacements are put at a disadvantage). A supplementary annual fee has to be paid for cars that run on LPG/CNG (0-799cc: €84/year, 800–2,499cc; €148/year and >2,500cc: €208/year) to compensate financial loss for the state due to the absence of excise at the pump.
Brazil In Brazil, the states may collect an annual Vehicle Licensing Fee () which has a fixed value for each vehicle category determined by each state. In addition, each state may impose a Vehicle Property Tax (), with a rate up to 4%.
Costa Rica The Costa Rican car property tax, commonly referred to as , is among the highest in Latin America, with rates that can go up to 3.5% of the fiscal value of the vehicle yearly. When compared to the Costa Rican minimum wage (₡331,516.22 a month, equivalent to US$597.33), the tax on an average US$15,000 (₡8,600,000) car can be ₡302,000 (US$525), or 80% to 120% of a month's pay. Even though Costa Ricans receive a yearly bonus equivalent to a month's salary, the property tax negates this for most car owners, which has led to calls for tax law reform.
Opponents to the car property tax argue that common cars already pay 100% tariff when imported, meaning that a car in Costa Rica is twice as expensive as in the country of origin. Additionally, gas refills include 65% fuel tax. Owning a car that would cost US$7,500 to purchase (in the United States) for seven years can result in the owner paying up to US$29,595 in total taxes (around US$4,227.85 a year). The Ministry of Finance also has the right to step up the fiscal value of a car, effectively a negative depreciation.
Estonia The yearly motor vehicle tax () was implemented in 2025. Vehicles first registered at least 20 years ago to the date are only taxed at the flat basic rate of €50 per year, tax for newer vehicles is in addition to the €50 calculated based on CO2 emission per WLTP standards (€3 per gramme between 118-150 grammes, €3.50 per gramme between 151-200 grammes and €4 per gramme for over 201 grammes) and GVWR (€0.40 for every kilogramme over 2000 kilogrammes, up to €400). If the CO2 emission is instead given in NEDC standards, the price based on emission will be multiplied with a coefficient of 1.21. If the CO2 emission is not given, then the tax rate will be calculated by adding the engine power in kilowatts multiplied by 0.29 and the vehicle's curb weight in kilogrammes multiplied by 0.07.
France
In France, the vignette was abolished for private vehicles in 2001 and was replaced by a tax on toll-road operators at a rate of €6.85 per 1,000 kilometres travelled. In addition, a tax is levied on vehicles registered to companies. Since 2006, the tax is levied according to CO2 emissions ranging from €2 per gramme to €19 per gramme.
Germany In Germany, the Motor Vehicle tax () is an annual tax on all vehicles. It ranges from €5 per 100cc to €25 per 100cc for petrol engines and €13 to €37 for diesel engines. Vehicles first registered before June 30, 2009 are taxed according to engine displacement and national/European emission class, whereas vehicles which were registered after that date are taxed solely based on CO2 emission in grams per km (g CO2/km). An on-line tax calculator has been made available. The CO2 Price is up to 4 Euros per gram.
Hong Kong In Hong Kong, the licence fee is according to the category (passenger cars, goods vehicles, taxis, etc.) of the vehicle first. Then, for passenger cars (known as private cars), it is calculated by the engine size. The lowest tax band is under 1500 cc, then the tax band changes at 2500 cc, 3500 cc and 4500 cc. Due to this system of license fee, most of 1600 cc to 1800 cc car models do not sell well. Most people prefer 1500 cc for compact cars. Due to this reason, some manufacturers provide only the 1500 cc version of their compact cars to Hong Kong market such as Toyota Corolla and Nissan Tiida. Both of these two cars only have 1500 cc version available.
By engine displacement: ≤ 1500 cc = HK$3,929 1501 cc- 2500 cc = HK$5,794 2501 cc- 3500 cc = HK$7,664 3501 cc- 4500 cc = HK$9,534 >4500 cc = HK$11,329
Hungary In Hungary, since 2009, this tax is based on the vehicle's engine performance and the vehicle's age. Before this so-called performance tax, this tax was based on the vehicle's weight and unofficially it was called a weight tax.
India In India, road tax is imposed by the respective state governments (lifetime and also annual for commercial vehicles) also, further there could be toll for specific usage of roads (charge depends on distance, type, etc.). At the time of purchase of the vehicle, the government levies GST (Goods & Services Tax) at the rate of 28% and additional cess is levied based on the cubic capacity of the engine of the vehicle(1% for small cars with CC< 1200 CC, 3% for CC between 1200 and 1500 CC, 15% for above 1500 CC). Electric cars are levied lower tax of 5%.
The motor vehicles tax (called road tax) is calculated on the basis of various factors including engine capacity, seating capacity, unladen weight and cost price. Each state has different rules and regulations for charging the road tax.
There is proposal to have uniform rules and also tariffs across the country in line with the government's initiative of having "One Nation-One Tax".
In India, there is a movement called "Digital India" for digitalizing labor in every department and the Ministry of Road Transport & Highways has created a portal called "Vahan" for online road tax payment to ease the payment of taxes.
Ireland Vehicle registration tax applies to all new car registrations as well as imports. VRT for private cars is based on CO2 emissions as well as emissions.
Motor tax is payable as an annual duty (subject to exemptions) in Ireland. Prior to 2008, the annual tax levy was based on the engine size, and was ranging from €199 pa for <1,000 cc to €1,809 for >3,001 cc. Private cars registered after July 2008 are taxed at the tax rates based on the vehicle's carbon dioxide emissions. The tax bands for CO2 emissions range from €120 pa for 0-80 g/km to €2,350 pa for >225 g/km. Commercial vehicle tax is based on GVW, regardless of engine size or CO2 emissions, and range from €333 to €900 pa. Vintage vehicles are taxed at €56 pa; a vehicle is considered vintage 30 years after the date of its first registration.
Israel Combustion engine cars base purchase tax is 83% plus 7% customs tax for manufacturers from countries with no treaty with Israel plus VAT of 17% and optional "prestige tax" of 2.9% to 18% for high cost cars. This brings total tax on a new car to around 100%. Hybrid engine cars base tax is 45%, and electric cars base tax is 10%.
Italy As of 2023, road taxes in Italy are classified by tax horsepower and European emission standards.
Japan A tax is collected under the Local Tax Act of 1950 that is paid every May based on the vehicle's engine's displacement. The tax is then determined by whether the vehicle is for business or personal use. Brackets are determined based on exterior dimensions and engine displacement as defined under the dimension regulations. The tax to be paid is then based on the engine's displacement starting with engines below 1,000 cc, and increasing at 500 cc intervals to a top bracket of 6,000 cc and above.
Personal vehicles pay more than vehicles identified as business use. If the car has been certified as a low-emissions vehicle, under the Japanese low-emission vehicle certification system, the tax obligation is reduced. Kei cars (Japanese vehicles with 660 cc engines and reduced exterior dimensions) have significant tax advantages because their tax is about a quarter of that of a 1,000 cc car.
The legislation is similar to a European approach to taxing engine horsepower, while the Japanese approach taxes engine displacement.
Automobile Tax (exterior dimensions) Road Tax for regular 4-wheel vehicles (Metropolitan/Prefectural Tax) vehicle plates and taxes 40/400 and 50/500 Japan license plates: ¥7,500 33/300 license plates (4.5-litre engines and below): ¥19,000 33/300 license plates (4.6-litre engines and above): ¥22,000 11/100 license plates: ¥32,000 Light Motor Vehicle Tax Road Tax for mini-cars and motorcycles (city/ward tax) Kei car: ¥3,000 Motorcycles up to 125 cc: ¥500 Motorcycles 125 and above cc: ¥1,000
Automobile Weight Tax On 31 May 1971 until 31 March 2010, the Japanese government passed a law creating the Automobile Weight Tax . It was modified on 31 March 2010, and the next day, on 1 April 2010. The tax is paid every year in conjunction with the engine displacement based road tax. The weight determination is made in tonnes.
Vehicle class Tax amount motorcycle ¥1,500 kei car ¥2,500 passenger car ¥5,000 per tonne truck ¥2,500 per tonne
As of 1 April 2010, the tax requirements are as follows. The determination of whether the vehicle is for business or personal use has been added, similar to the engine displacement regulations:
Vehicle class Personal use Business use motorcycle ¥2,200 ¥1,600 kei car (125~250cc) ¥5,500¥4,300 new kei car ¥11,300 ¥8,100 renewal kei car ¥3,800 ¥2,700 passenger car ¥10,000 per tonne¥5,400 per tonne truck (commercial vehicle) ¥3,800 per tonne¥5,400 per tonne bus ¥5,000 per tonne¥2,700 per tonne
31 March 2010
Vehicle class Personal use Business use motorcycle ¥2,500¥1,700 kei two wheel(126~250cc) ¥6,300¥4,500 new kei car ¥13,200¥8,400 renewal kei car ¥4,400¥2,800 passenger car ¥12,600 per tonne¥5,600 per tonne truck (commercial vehicle) ¥4,400 per tonne¥2,800 per tonne bus ¥6,300 per tonne¥2,800 per tonne
Road Tax increments The following is the tax rates for passenger vehicles used for both personal and business use, incremented by 500 cc engine displacement.
Total displacement Personal use Business use under 1-litre ¥29,500¥7,500 1-litre–1.4-litres ¥34,500¥8,500 1.5-litres–1.9-litres ¥39,500¥9,500 2.0-litres–2.4-litres ¥45,000¥13,800 2.5-litres–2.9-litres ¥51,000¥15,700 3.0-litres–3.4-litres ¥58,000¥17,900 3.5-litres–3.9-litres ¥66,500¥20,500 4.0-litres-4.4-litres ¥76,500¥23,600 4.5-litres–5.9-litres ¥88,000¥27,200 6-litres and larger ¥111,000¥40,700
The following table is the tax bracket for lorries or vehicles built with a load carrying section without seats and a single bench seat in the front of the vehicle in an enclosed passenger compartment.