Green Tax at a Glance
Under the National Scrappage Policy, transport vehicles older than 8 years and personal vehicles older than 15 years are charged a 'Green Tax' at 10-25% of the road tax. In highly polluted cities, this can go up to 50%.
Old Vehicle Green Tax
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Estimate the cost of renewing your RC for vehicles older than 15 years.
Vehicle Info
Green Tax
₹12,500
RC Fees
₹5,000
State-wise Green Tax Rates in India (2026)
Green Tax rates vary by state, vehicle type, and the pollution level of the registration city. Below is a summary of rates across major Indian states.
| State | Personal Vehicle | Commercial Vehicle | Polluted Cities |
|---|---|---|---|
| Delhi NCR | 25% of Road Tax | 50% of Road Tax | Up to 50% |
| Maharashtra | 10-15% of Road Tax | 25% of Road Tax | Up to 25% |
| Karnataka | 10% of Road Tax | 25% of Road Tax | Up to 25% |
| Tamil Nadu | 10% of Road Tax | 25% of Road Tax | Up to 25% |
| Uttar Pradesh | 10-25% of Road Tax | 25-50% of Road Tax | Up to 50% |
| Gujarat | 10% of Road Tax | 15% of Road Tax | Up to 25% |
| Rajasthan | 10% of Road Tax | 15-25% of Road Tax | Up to 25% |
| Other States | 10% of Road Tax | 10-15% of Road Tax | 10-15% |
How Green Tax Works in India
The Green Tax, also known as the Environmental Compensation Charge (ECC), was introduced under the National Vehicle Scrappage Policy approved by the Union Cabinet. It is levied on vehicles that exceed the prescribed age limit at the time of RC (Registration Certificate) fitness renewal.
Who has to pay Green Tax?
- Personal vehicles older than 15 years from the date of initial registration
- Commercial/Transport vehicles older than 8 years from the date of initial registration
- Vehicles registered in highly polluted cities (CPCB non-attainment cities) pay higher rates
How is it calculated?
Green Tax is calculated as a percentage of the original road tax paid at the time of vehicle registration. The rate depends on:
- Vehicle type: Two-wheelers pay lower absolute amounts, while commercial vehicles pay the highest
- City classification: Highly polluted cities (Delhi NCR, Lucknow, Patna) attract up to 50% rates
- Vehicle age: Older vehicles may attract progressively higher rates in some states
What vehicles are exempt?
- Electric Vehicles (EVs) — 100% exempt from Green Tax as they produce zero tailpipe emissions
- CNG/LPG vehicles — May receive reduced rates in some states
- Hybrid vehicles — Concessions available depending on state policy
- Government and military vehicles — Exempt under central regulations
What happens if you don't pay?
If the Green Tax is not paid at the time of fitness renewal, the RTO will not issue the fitness certificate. Without a valid fitness certificate, the vehicle cannot legally ply on Indian roads. Driving without valid RC/fitness attracts a fine of up to ₹10,000 under the Motor Vehicles (Amendment) Act, 2019.
Frequently Asked Questions
What is Green Tax on old vehicles in India?
Green Tax is an environmental surcharge levied on vehicles older than 15 years (personal) or 8 years (commercial) at the time of RC fitness renewal. The rate ranges from 10-50% of the original road tax depending on the city and vehicle type.
How much is Green Tax in highly polluted cities?
In highly polluted cities like Delhi NCR, Lucknow, and Patna, the Green Tax rate can go up to 50% of the road tax amount. In Tier 1 cities it is typically 25%, and in other areas it is around 10%.
Are electric vehicles exempt from Green Tax?
Yes, electric vehicles are 100% exempt from Green Tax as they produce zero tailpipe emissions. They are also exempt from road tax in most Indian states, making EVs significantly cheaper to own long-term.
Can I scrap my vehicle instead of paying Green Tax?
Yes. Under the National Scrappage Policy, you can voluntarily scrap your old vehicle at a registered scrapping facility (RVSF) and receive a Certificate of Deposit (CoD). This entitles you to a 25% rebate on road tax for a new vehicle and up to 5% discount from manufacturers.
How do I renew RC for a vehicle older than 15 years?
Visit your nearest RTO with the vehicle for a fitness inspection. Pay the Green Tax along with the standard fitness renewal fees. The RTO will conduct emission tests and physical inspection. If the vehicle passes, you will receive a renewed fitness certificate valid for 5 years.
Avoid Green Tax
Switch to Electric
Electric vehicles are 100% exempt from Green Tax and Road Tax. Use the ₹78,000 subsidy to charge your EV for free at home.