Based on Vehicle Type

• The calculation differs for two-wheelers, four-wheelers, and commercial vehicles.
  
• Private vehicles generally have a fixed or slab-based rate.
  
• Commercial vehicles are taxed based on usage and load capacity.
  
• Agricultural and special utility vehicles may have concessional rates.
  
• Electric vehicles often enjoy reduced or waived tax in some states.
  

Engine Capacity and Vehicle Cost

• Higher engine capacity leads to higher tax rates.
  
• Engine size is measured in cubic centimeters as a key factor.
  
• Costlier vehicles attract higher percentage-based tax.
  
• Luxury cars and SUVs have steeper tax brackets.
  
• Some states apply tax as a percentage of ex-showroom price.
  

Age of the Vehicle

• New vehicles attract full road tax as per state policy.
  
• Older vehicles may have a lower tax based on depreciation.
  
• States apply reduced rates for used vehicles during re-registration.
  
• Some states use the manufacturing year for calculating depreciation.
  
• Lower tax applies when ownership is transferred after several years.
  

Purpose of Use

• Vehicles registered for private use are taxed differently than commercial ones.
  
• Commercial vehicles face periodic taxation based on operation.
  
• Transport vehicles may incur tax by distance or per trip.
  
• School buses and ambulances often have special rates.
  
• The intended use declared during registration impacts the tax slab.
  

State-Specific Rules

• Each state in India frames its own tax structure under the Motor Vehicles Act.
  
• Slabs and rates vary significantly between states.
  
• Some states use flat fees while others use percentage models.
  
• Lifetime tax or periodic tax depends on state policies.
  
• Changes in state of registration require new tax calculation and payment.