ABSTRACT An Automated toll collection system is the system that helps in eliminating the heavy traffic caused in the Metropolitan countries. It is one of the flexible methods used to manage the flow of traffic in big cities of today. An Automated toll collection system is proposed, and the RFID technology is used. It is an innovative method that uses electromagnetic waves to easily identify and track the tags that are attached to the windshield of the vehicle. The main focus of this project is to design a system that automatically identifies the unique tag number on the windshield of the vehicle and be able to deduct the money on the tag. When the transaction is done, the system must be able to send the message to owner of the vehicle to notify how the transaction happened and also be able to automatically open the gate for the vehicle to pass.