Toll Tax Update 2026: Live Near a National Highway Toll Plaza? You Could Get an Annual Pass for ₹1,500

People living near National Highway toll plazas may soon have a more affordable option for regular travel. The Ministry of Road Transport and Highways has introduced a Concessional Local Pass for eligible non-commercial vehicle owners residing within 20 kilometres of a toll plaza.

The new provision will come into effect on November 1, 2026. Depending on the location of the toll plaza, eligible residents can obtain an annual pass for ₹1,500 or ₹3,000, potentially reducing the cost of frequent journeys through a particular toll point.

How Much Will the New Local Pass Cost?

The annual charges depend on whether the toll plaza is located within or outside municipal or local town limits.

  • ₹1,500 per year for eligible toll plazas located outside municipal or local town limits.

  • ₹3,000 per year for eligible toll plazas situated within these limits.

The pass is intended for regular commuters who live close to a toll plaza and frequently use the same route. It is not a nationwide toll-free pass and cannot be used at every toll plaza.

Who Is Eligible for the Pass?

To qualify under the new provision, applicants must meet the applicable conditions:

  • They must own an eligible non-commercial vehicle.

  • Their residence must be within 20 kilometres of the relevant toll plaza.

  • The vehicle must have a valid and functional FASTag.

  • The selected toll plaza must fall within the scope of the new provision.

The pass will be linked to a specific toll plaza and cannot be transferred for use at another plaza.

Who Cannot Use This Facility?

The concessional local pass will not be available at National Highways or expressways where toll collection operates under a closed user-fee collection system.

It will also not be issued where a service road or alternative road is available for commuters to use.

Therefore, living within 20 kilometres of a toll plaza does not automatically guarantee eligibility. Residents should confirm the status of their particular toll plaza before making any payment.

How Can You Apply?

The government has stated that the annual local pass will be available at eligible toll plazas from November 1, 2026.

The facility is scheduled to become available through the Rajmargyatra app from December 1, 2026.

Before applying, vehicle owners should confirm the applicable annual fee, the toll plaza's eligibility and the documents or residence proof required. They should also ensure that their FASTag is active and functioning properly.

Is the Annual Pass Better Than a Monthly Pass?

The new facility provides an additional option rather than automatically replacing the existing monthly pass. Eligible commuters can choose between the two options for the relevant toll plaza.

For someone who crosses the same toll plaza regularly, comparing the annual fee with the cost of repeated toll payments or the existing monthly pass may help determine which option is more economical.

However, the savings will depend on travel frequency, the applicable toll charges and the terms governing the selected pass.

What Should Commuters Remember?

The Concessional Local Pass is designed to make regular travel more affordable for eligible residents living near National Highway toll plazas. Its benefits will depend on whether the relevant toll point meets the prescribed conditions.

The government announced the measure on October 27, 2026, through the Ministry of Road Transport and Highways. Residents should check the official ministry announcement or ask the relevant toll plaza for confirmation before applying.

The key dates to remember are November 1, 2026, for availability at eligible toll plazas and December 1, 2026, for availability through the Rajmargyatra app.