RFID based Smart Toll Collection System as a solution to solve the traffic problems and also to maintain transparency of the toll collection system. This system is to make a digital toll collection system that will be less time consuming and automated. This system focuses on an electronic toll collection (ETC) system using radio frequency identification (RFID) technology. The proposed RFID system uses tags that are mounted on the windshields of vehicles, through which information embedded on the tags are read by RFID readers; this system eliminates the need for vehicle owners and toll authorities to manually perform ticket payments and toll fee collections, respectively. Data information is also easily exchanged between the vehicle owners and toll authorities, thereby enabling a more efficient toll collection by reducing traffic and eliminating possible human errors.