Abstract: Most Electronic toll collection systems around the world are implemented using Dedicated Short Range Communication technology .The Automatic toll tax payment system is proposed and the amount transaction information sends to the cell phone of the motorists through the GSM modem technology. It is an innovative technology for expressway network automatic toll collection method. The aim of the project is to design a system, which automatically identifies an approaching vehicles and records vehicles number and time. The vehicle belongs to the authorized person, it automatically opens the toll gate and predetermined amount is automatically deducted from its account. Suppose the illegal entry through gate is observed, then it will be registered and providing the warning sound. Each vehicle will hold an RFID tag and it contain unique identification number assigned. Whenever the vehicle passes the toll booth, the amount will be deducted from his prepaid balance. New balance will be updated. Incase if one has insufficient balance, his updated balance will be negative one. The data information is exchanged between the motorists and the toll authorities, thereby enabling a more efficient toll collection by reducing traffic and eliminating possible human errors.

Keywords: RFID Tag, GSM, Automatic toll gate