That's on top of an existing "Congestion Charge" aimed at decreasing traffic in the city.
The toxicity charge covers the same area and operating times as the congestion charge zone and applies mainly to vehicles registered before 2006 that do not meet the "Euro 4" European directive to regulate vehicle emissions.
It will be followed by the Ultra-Low Emission Zone (ULEZ) in September 2020, which will require all vehicles entering central London to comply with tough emissions standards or face a steep daily charge.
London surpassed the European Union's annual limit for nitrogen dioxide exposure just five days into 2017, according to King's College. The new charge is based on estimates that diesel vehicles account for 40% of all air pollution in the city and add to pollution-related health issues for Londoners.
Here is a look at PM's reunion with Nitish Kumar in pics
The Prime Minister stressed that the Central government gives utmost importance to the development of eastern India. The excitement and anticipation of the students at Patna University were apparent as the Prime Minister arrived.
"Today marks a major milestone in this journey with the introduction of the T-Charge to encourage motorists to ditch polluting, harmful vehicles. It's costing us. So the T-charge will cost us money but I think that's a price worth paying to improve the quality of our air".
A report last week found that pollution is killing 50,000 people in the United Kingdom each year, with the chief executive of the British Lung Foundation saying air pollution is reaching "crisis point worldwide".
Meanwhile on Friday Khan announced a new two-year collaboration with the Alan Turing Institute to develop new ways of modelling air quality in London using machine learning.
However, she said it was "only one step towards clean air".