Individuals purchasing a vehicle pay the road tax which is based on the ex-showroom price of the vehicle. The calculation of road tax depends on these following things:
- Seating capacity of the vehicle
- Engine capacity of the vehicle
- Age of the vehicle
- Weight of the Vehicle
Calculation of Road Tax
Tax Rate on Two Wheelers
| S.No | Description of Vehicle | Life Time Tax Charged |
| 1. | At the time of registering of new vehicles. | 9% of vehicle cost |
| 2. | Registered Vehicle not more  than two years old | 8% of vehicle cost |
| 3. | Registered Vehicle more than two years old but not more than three years. | 7% of vehicle cost |
| 4. | Registered Vehicle more than three years old but not more than four years. | 6% of vehicle cost |
| 5. | Registered Vehicle more than four years old but not more than five years. | 5% of vehicle cost |
| 6. | Registered Vehicle more than five years old but not more than six years. | 4% of vehicle cost |
| 7. | Registered Vehicle more than six years old but not more than seven years. | 3.5% of vehicle cost |
| 8. | Registered Vehicle more than seven years old but not more than eight years. | 3% of vehicle cost |
| 9. | Registered Vehicle more than eight years old but not more than nine years. | 2.5% of vehicle cost |
| 10. | Registered Vehicle more than nine years old but not more than ten years. | 2% of vehicle cost |
| 11. | Registered Vehicle more than ten years old but not more than eleven years. | 1.5% of vehicle cost |
| 12. | Registered Vehicle more than eleven years. | 1% of vehicle cost |
 Tax Rate on Four Wheelers
The road tax applicable on four-wheelers in Telangana is determined by the cost of the vehicle, which is Rs 10 lakh. The table below specifies the road tax for different vehicles based on their age and cost.
| S.No | Description of Vehicle | Life Time Tax charged (Vehicle costing under Rs 10 lakh) | Life Time Tax charged (Vehicle costing over Rs 10 lakh) |
| 1. | At the time of registering of new vehicles. | 12% of vehicle cost | 14% of vehicle cost |
| 2. | Registered Vehicle not more than two years old. | 11% of vehicle cost | 13% of vehicle cost |
| 3. | Registered Vehicle more than two years old but not more than three years | 10.5% of vehicle cost | 12.5% of vehicle cost |
| 4. | Registered Vehicle more than three years old but not more than four years. | 10% of vehicle cost | 12% of vehicle cost |
| 5. | Registered Vehicle more than four years old but not more than five years. | 9.5% of vehicle cost | 11.5% of vehicle cost |
| 6. | Registered Vehicle more than five years old but not more than six years. | 9% of vehicle cost | 11% of vehicle cost |
| 7. | Registered Vehicle more than six years old but not more than seven years. | 8.5% of vehicle cost | 10.5% of vehicle cost |
| 8. | Registered Vehicle more than seven years old but not more than eight years. | 8% of vehicle cost | 10% of vehicle cost |
| 9. | Registered Vehicle more than eight years old but not more than nine years. | 7.5% of vehicle cost | 9.5% of vehicle cost |
| 10. | Registered Vehicle more than nine years old but not more than ten years. | 7% of vehicle cost | 9% of vehicle cost |
| 11. | Registered Vehicle more than ten years old but not more than eleven years. | 6.5% of vehicle cost | 8.5% of vehicle cost |
| 12. | Registered Vehicle more than eleven years old but not more than twelve years. | 6% of vehicle cost | 8% of vehicle cost |
| 13. | Registered Vehicle more than twelve years. | 5.5% of vehicle cost | 7.5% of vehicle cost |
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