Telangana govt increases life tax on two, three, four-wheelers and other non-transport vehicles from August 14

Telangana Transport department has hiked life tax on two-wheelers, four-wheelers and other non-transport category vehicles effective from Thursday (August 14, 2025). 

As per the old regime, the tax rates for new four wheelers ranged from 12% to 14% depending on the cost of the vehicle. For two wheelers, it was calculated at 9%. Similarly, non-transport three wheelers were also taxed at 12%.

New life tax on two-wheelers

According to a government order dated August 13, the hiked life tax on two-wheelers is between 9% and 18% depending on the price of the vehicle.

For three wheelers, and four wheelers, and vehicles with up to 10 seats, under the non-transport category, the tax rates are between 13% and 21% for new vehicles, depending on their cost. New vehicles costing above ₹50 lakh now attract 21% tax.

Interestingly, the Transport Department increased the tax slab for company-owned vehicles. Such vehicles will now have life tax rates ranging from 15% to 25%, and will be contingent upon their cost. An additional 2% surcharge over the standard rates for second or more vehicles will be applicable.

According to the G,O., the enhancement was done for the improvement of “road infrastructure, road safety and better enforcement”.