Road tax is one of the biggest chunks of your car’s on-road price, and it varies wildly across India. Register a Hyundai Creta E Petrol in Raipur and you pay ₹64,320 in road tax. Register the exact same car in Nagpur, and that number jumps to ₹1,28,640. Same car, same ex-showroom price, double the tax.
Here’s every Indian state’s road tax rate for 2026, how the calculation works, which states are cheapest and most expensive, and where EVs get a free pass.
Road Tax Rates by State: Complete Table
This table covers all 28 states and 8 union territories. Rates apply to new private four-wheelers (passenger cars) registered by individuals.
Major States
| State | Up to ₹5L | ₹5–10L | ₹10–20L | Above ₹20L | Additional Charges | Calculation Base |
|---|---|---|---|---|---|---|
| Andhra Pradesh | 12% | 12% | 14% | 14% | +2% surcharge for second vehicle | Ex-showroom |
| Assam | 4–6% | 10% | 10% | 14% | +1% Road Safety Cess on tax | Ex-showroom |
| Bihar | 8–9% | 10% | 10% | 12% | — | Ex-showroom |
| Chhattisgarh | 5% (<₹5L), 6% (>₹5L) | 6% | 6% | 6% | — | Ex-showroom |
| Goa | 9% | 9% | 12% | 15% | +₹15,000–50,000 fixed add-on for >₹10L | Ex-showroom |
| Gujarat | 6% | 6% | 6% | 6% | Flat rate, no fuel differentiation | Pre-GST price |
| Haryana | 5% | 8% | 8% | 10% | No diesel surcharge | Ex-showroom |
| Himachal Pradesh | 6% | 6% | 7% | 7% | +₹2,000–4,000 Green Fee | Ex-showroom |
| Jharkhand | 6% | 6% | 15% | 15% | — | Pre-GST price |
| Karnataka | 13% | 14% | 17% | 18% | +11% cess on tax + ₹1,000 welfare cess | Ex-showroom |
| Kerala | 10% | 13% | 15–17% | 22% | +₹200 Road Safety Cess | Ex-showroom |
| Madhya Pradesh (Petrol/CNG) | 8% | 8% | 10% | 14% | — | Ex-showroom |
| Madhya Pradesh (Diesel) | 10% | 10% | 12% | 16% | Diesel penalized | Ex-showroom |
| Maharashtra (Petrol) | 11% | 11% | 12% | 13% | +2% Road Safety Cess on tax | Ex-showroom |
| Maharashtra (Diesel) | 13% | 13% | 14% | 15% | +2% Road Safety Cess on tax | Ex-showroom |
| Maharashtra (CNG) | 8% | 8% | 9% | 10% | +2% Road Safety Cess on tax | Ex-showroom |
| Manipur | 3–5% | 6% | 7% | 8% | Low rates across the board | Ex-showroom |
| Meghalaya | 4–6% | 6% | 8% | 10% | — | Ex-showroom |
| Mizoram | Flat ₹11,250–19,500 | — | — | — | Fixed amounts, not percentages | Fixed |
| Nagaland | 6% | 6% | 6% | 6% | Flat rate | Ex-showroom |
| Odisha | 6% | 8% | 10% | 12–20% | 20% for cars above ₹40L | Ex-showroom |
| Punjab | 10% | 10% | 12% | 13% | +₹1,000 Cow Cess | Ex-showroom |
| Rajasthan (Petrol) | 6% (<800cc), 9% (800–1200cc) | 9–10% | 10% | 10% | +12.5% surcharge on tax + Green Tax ₹2,500–5,000 | Ex-showroom |
| Rajasthan (Diesel) | 8% (<800cc), 11% (800–1200cc) | 11–12% | 12% | 12% | +12.5% surcharge on tax + Green Tax ₹2,500–5,000 | Ex-showroom |
| Sikkim | 1% (<₹2L), 4% (₹10–25L) | 4% | 4% | 5% | Very low rates; 1% for EVs | Ex-showroom |
| Tamil Nadu | 12% | 13% | 18% | 20% | +₹2,250 Road Safety Tax | Ex-showroom |
| Telangana | 13% | 14% | 18% | 20–21% | +₹5,000 Road Safety Cess (from March 2026) | Ex-showroom |
| Tripura | Flat ₹4,100–8,250 | — | — | — | Fixed amounts, not percentages | Fixed |
| Uttar Pradesh | 9% | 9% | 11% | 11% | — | Ex-showroom |
| Uttarakhand | 6% | 6% | 8% | 8% | +₹1,500–3,000 Green Tax | Ex-showroom |
| West Bengal | 5.5% | 5.5% | 10% | 10% | — | Ex-showroom |
Union Territories
| UT | Up to ₹6L | ₹6–10L | Above ₹10L | Notes |
|---|---|---|---|---|
| Delhi (Petrol) | 4% | 7% | 10% | +MCD parking fee ₹2,000–4,000 |
| Delhi (Diesel) | 5% | 8.75% | 12.5% | +1% Environment Compensation for diesel ≥2000cc |
| Chandigarh | 10% | 10% | 12% | +₹1,000 Cow Cess |
| Puducherry | 4% | 4% | 7% | Low flat rates |
| Jammu & Kashmir | 9–10% | 9–10% | 10% | +3% surcharge for out-of-state purchase |
| Ladakh | 6% | 6% | 9% | Among the lowest UTs |
| Andaman & Nicobar | 6–8% | 6–8% | 6–8% | Low rates; 2% for hybrids |
| Dadra & Nagar Haveli | 2.5% | 2.5% | 2.5–3% | Lowest in India for diesel; flat 2.5% petrol |
| Lakshadweep | 5.5% | 5.5% | 5.5% | Flat rate across all brackets |
Important notes: – Most states calculate road tax on the ex-showroom price (price after GST). Dealer discounts, exchange bonuses, and accessories do NOT reduce the taxable value. – Gujarat, Chandigarh, and Jharkhand are exceptions. They calculate on the pre-GST invoice price, which makes the effective tax noticeably lower. – Company-registered and imported vehicles attract a flat 20% road tax in Maharashtra regardless of fuel type or price.
How Road Tax Is Calculated
The calculation itself isn’t complicated. You take your car’s ex-showroom price and multiply it by your state’s applicable percentage.
Formula: Road Tax = Ex-Showroom Price × State Tax Rate (%)
But what does that actually mean in rupees? Here’s how it plays out across three common price points:
Calculation Example 1: Budget Car at ₹8 Lakh
| State | Tax Rate | Road Tax Amount |
|---|---|---|
| Dadra & Nagar Haveli | 2.5% | ₹20,000 |
| Himachal Pradesh | 6% | ₹48,000 |
| Gujarat | 6% (pre-GST base ~₹6.78L) | ₹40,680 |
| Delhi (Petrol) | 7% | ₹56,000 |
| Uttar Pradesh | 9% | ₹72,000 |
| Maharashtra (Petrol) | 11% | ₹88,000 |
| Karnataka | 14% | ₹1,12,000 |
| Kerala | 13% | ₹1,04,000 |
| Tamil Nadu | 13% | ₹1,04,000 |
Calculation Example 2: Mid-Range Car at ₹15 Lakh
| State | Tax Rate | Road Tax Amount |
|---|---|---|
| Dadra & Nagar Haveli | 2.5% | ₹37,500 |
| Himachal Pradesh | 7% | ₹1,05,000 |
| Gujarat | 6% (pre-GST base ~₹12.71L) | ₹76,260 |
| Uttarakhand | 8% | ₹1,20,000 |
| Delhi (Petrol) | 10% | ₹1,50,000 |
| Maharashtra (Petrol) | 12% | ₹1,80,000 |
| Karnataka | 17% | ₹2,55,000 |
| Tamil Nadu | 18% | ₹2,70,000 |
| Kerala | 17% | ₹2,55,000 |
Calculation Example 3: Premium Car at ₹25 Lakh
| State | Tax Rate | Road Tax Amount |
|---|---|---|
| Dadra & Nagar Haveli | 2.5% | ₹62,500 |
| Himachal Pradesh | 7% | ₹1,75,000 |
| Gujarat | 6% (pre-GST base ~₹21.19L) | ₹1,27,140 |
| Delhi (Petrol) | 10% | ₹2,50,000 |
| Maharashtra (Petrol) | 13% | ₹3,25,000 |
| Karnataka | 18% | ₹4,50,000 |
| Tamil Nadu | 20% | ₹5,00,000 |
| Kerala | 22% | ₹5,50,000 |
Look at that gap. A ₹25 lakh car costs ₹62,500 in road tax in Dadra & Nagar Haveli and ₹5,50,000 in Kerala. That’s nearly ₹5 lakh more for the exact same vehicle.
Real-World Example: Hyundai Creta in Two Cities
Take the Hyundai Creta E Petrol with an ex-showroom price of ₹10.72 lakh:
| Component | Raipur (Chhattisgarh) | Nagpur (Maharashtra) |
|---|---|---|
| Ex-showroom | ₹10,72,000 | ₹10,72,000 |
| Road tax | ₹64,320 (6%) | ₹1,28,640 (12%) |
| Registration | ₹600 | ₹600 |
| HSRP | ₹800 | ₹400 |
| Insurance | ~₹45,000 | ~₹48,000 |
| On-road price | ~₹12,01,000 | ~₹12,67,000 |
That’s a ₹66,000 difference on the base variant alone. Now take the top-spec SX(O) Knight Diesel AT at ₹20.20 lakh ex-showroom. Nagpur charges ₹3,03,000 in road tax (15% diesel rate) versus ₹1,21,200 in Raipur. Nearly ₹1.8 lakh difference on the same car.
What Road Tax Includes (and What It Doesn’t)
Here’s the good news. Road tax is a one-time lifetime tax valid for 15 years from the date of registration. You pay it once and you’re done, unless you transfer the vehicle to another state.
Road tax does NOT include: – Registration fee: ₹600 (fixed nationwide) – HSRP (number plate): ₹230–400 depending on state – Hypothecation charge: ₹1,500 (only if car is financed) – FASTag fee: ₹500–600 (mandatory) – Insurance: Separate, varies by insurer and city zone – TCS: 1% Tax Collected at Source for cars above ₹10 lakh ex-showroom (refundable when filing ITR) – MCD parking fee (Delhi only): ₹2,000 (<₹4L) or ₹4,000 (>₹4L)
States With Lowest Road Tax
Want to save the most on your car purchase? These states and UTs offer the lightest road tax burden in 2026:
1. Dadra & Nagar Haveli (2.5–3%) The lowest road tax anywhere in India. A flat 2.5% for petrol cars regardless of price. Diesel cars above ₹10 lakh pay 3%. On a ₹15 lakh car, you’re looking at just ₹37,500 in road tax.
2. Sikkim (1–5%) Cars under ₹2 lakh pay just 1%. Most mass-market cars in the ₹10–25 lakh range face only 4%. EVs get a flat 1% rate.
3. Puducherry (4–7%) Puducherry keeps it simple with just two slabs: 4% for cars up to ₹10 lakh, and 7% above. One of the lowest percentage-based rates in the country.
4. Gujarat (Flat 6%, Pre-GST Base) Gujarat charges a flat 6% with no fuel surcharges or tiering. The real advantage is that the 6% is calculated on the pre-GST invoice price, not the ex-showroom price. Since GST on cars is 18–28%, this effectively reduces the road tax base by 15–22%.
5. Chhattisgarh (5–6%) Cars under ₹5 lakh pay 5%, everything above pays 6%. No fuel-type differentiation or additional cesses.
6. Haryana (5–10%) Cars under ₹6 lakh pay just 5%. The 8% bracket covers most mass-market cars between ₹6–20 lakh. Only premium cars above ₹20 lakh hit 10%.
7. Himachal Pradesh (6–7%) Cars up to ₹15 lakh pay 6%, and those above pay 7%. Note that HP also charges a Green Fee of ₹2,000 (petrol) or ₹4,000 (diesel) on top. Still among the cheapest major states.
8. Lakshadweep (Flat 5.5%) A flat 5.5% across all price brackets, making it one of the most affordable UTs for car registration.
States With Highest Road Tax
These states will add a serious chunk to your car’s on-road price:
1. Kerala (10–22%) Kerala has five tax tiers, and the top slab is brutal. Cars above ₹20 lakh face a 22% lifetime tax. On a ₹25 lakh SUV, that’s ₹5.5 lakh in road tax alone. Kerala has also scrapped its blanket EV exemption, replacing it with a tiered 5–10% tax on electric cars.
2. Karnataka (13–18% + Cesses) Karnataka starts at 13% for the cheapest cars and climbs to 18% above ₹20 lakh. On top of that, there’s an 11% Infrastructure and Road Safety Cess calculated on the tax amount, plus a ₹1,000 Transport Workers Social Security Cess. The state also slapped a 10% tax on EVs priced above ₹25 lakh, so even electric car buyers aren’t fully spared here anymore.
3. Tamil Nadu (12–20%) Four aggressive tiers: 12% for cars up to ₹5 lakh, 13% for ₹5–10 lakh, 18% for ₹10–20 lakh, and a steep 20% for anything above ₹20 lakh. Plus a fixed ₹2,250 Road Safety Tax. If you’re buying a premium SUV in Chennai, brace yourself.
4. Telangana (13–21% + Road Safety Cess) Five slabs starting at 13% and climbing to 21% for cars above ₹50 lakh. From March 1, 2026, Telangana added a brand new one-time Road Safety Cess of ₹5,000 for all passenger cars and SUVs at registration.
5. Madhya Pradesh, Diesel (10–16%) MP isn’t a flat-rate state like many think. Diesel cars face 10% up to ₹10 lakh, 12% for ₹10–20 lakh, and a steep 16% for anything above ₹20 lakh. Petrol rates are lower at 8/10/14%.
6. Maharashtra, Diesel (13–15%) Maharashtra actively penalizes diesel with rates 2% higher than petrol across every slab. A diesel SUV above ₹20 lakh faces 15% road tax plus a 2% Road Safety Cess on the tax amount. Company-registered and imported vehicles? Flat 20% regardless of price.
7. Andhra Pradesh (12–14% + Safety Surcharge) Two-slab system: 12% under ₹10 lakh, 14% above. A 10% road safety cess on the lifetime tax was recently approved. And if you’re registering a second vehicle under the same name, there’s an additional 2% surcharge.
EV Road Tax Exemptions by State
Electric vehicles still get major road tax benefits across India. But the era of blanket 100% exemptions is ending. Here’s where things stand in 2026:
States With 100% Road Tax Exemption on EVs
| State | Exemption | Valid Until |
|---|---|---|
| Delhi | 100% waiver | March 2026 (likely to be extended under EV Policy 2.0) |
| Maharashtra | 100% waiver | March 2030 |
| Tamil Nadu | 100% waiver | December 2027 |
| Telangana | 100% waiver | December 2026 |
| Andhra Pradesh | 100% waiver | December 2029 |
| Punjab | 100% waiver | Ongoing |
| Chhattisgarh | 100% waiver | March 2027 |
| Jharkhand | 100% waiver | October 2027 |
| Rajasthan | 100% waiver | August 2027 |
| Uttar Pradesh | 100% waiver | October 2027 |
| Meghalaya | 100% waiver | March 2026 |
| Chandigarh | 100% waiver | March 2028 |
| Ladakh | 100% waiver | August 2027 |
| Jammu & Kashmir | 100% waiver | Ongoing |
States With Partial or Tiered EV Exemptions
| State | EV Tax Rate | Details |
|---|---|---|
| Karnataka | 0% for EVs under ₹25L; 10% for EVs above ₹25L | Changed in 2025 amendment; luxury EVs now taxed |
| Kerala | 5% (<₹15L), 8% (₹15–20L), 10% (>₹20L) | Moved from 100% to tiered system |
| Gujarat | 1% flat | Nominal rate |
| Haryana | 1.25–2.5% | Tiered by price: 1.25% (<₹6L), 2% (₹6–20L), 2.5% (>₹20L) |
| Sikkim | 1% flat | Among the lowest EV rates |
| Madhya Pradesh | Standard rates apply | EV exemption expired March 2026 |
Why EV Exemptions Are Shrinking
The trend is clear. As EV sales grow, states can’t afford to lose road tax revenue forever. Karnataka, Kerala, and Haryana have already pivoted from full waivers to tiered taxation. Madhya Pradesh let its exemption expire in March 2026. More states will follow within the next 2–3 years.
If you’re planning to buy an EV, don’t wait. Act before your state revises its exemption policy. Check the latest notification from your state transport department before finalizing.
We’ll have a dedicated guide on electric car tax benefits soon.
The BH Series: Road Tax for Frequent Movers
Do you relocate between states for work? The Bharat (BH) Series registration could save you a lot of headache. Instead of paying a one-time 15-year lifetime tax locked to one state, BH Series lets you pay road tax in 2-year blocks that follow you across all 28 states and 8 UTs.
BH Series Road Tax Slabs (2026):
| Vehicle Invoice Price (Pre-GST) | Petrol | Diesel (+2%) | EV (-2%) |
|---|---|---|---|
| Up to ₹10 lakh | 8% | 10% | 6% |
| ₹10–20 lakh | 10% | 12% | 8% |
| Above ₹20 lakh | 12% | 14% | 10% |
How it works: Your total lifetime tax is calculated at these rates, then divided proportionally into 2-year payment blocks. So a ₹15 lakh petrol car with a 10% lifetime base would have a total tax liability of ₹1,50,000, and you’d pay roughly ₹20,000 for each 2-year block.
Who qualifies: Defence personnel, central/state government employees, and private sector professionals whose employers operate in 4+ states. You apply through the VAHAN portal with Form 20 and an employer declaration.
The trade-off: BH Series rates can be higher than low-tax states like Gujarat or Himachal Pradesh. But if you’re moving from Karnataka (18%) or Kerala (21%) to a lower-tax state, it saves you the hassle and cost of NOC transfers, re-registration, and duplicate tax payments.
FAQs
Which state has the lowest road tax in India?
Dadra & Nagar Haveli charges the lowest road tax at just 2.5% of the ex-showroom price for petrol cars. Sikkim (1–5%), Puducherry (4–7%), and Gujarat’s flat 6% on pre-GST price are other budget-friendly options.
Is road tax a one-time payment?
Yes. Road tax for private passenger cars is a one-time lifetime payment valid for 15 years from registration. No annual renewal needed. The only exception is the BH Series, where you pay road tax in 2-year renewable blocks through the Parivahan portal.
Do electric cars get road tax exemption in India?
It depends on your state. As of March 2026, fourteen states and UTs (including Delhi, Maharashtra, Tamil Nadu, Telangana, Andhra Pradesh, Punjab, UP, Rajasthan, Jharkhand, Chhattisgarh, Chandigarh, J&K, and Ladakh) still offer 100% road tax exemption on EVs. Karnataka, Kerala, and Haryana have moved to tiered EV taxation. Gujarat charges a nominal 1%. Check your state’s latest transport department notification because these policies change frequently.
Can I register my car in a low-tax state to save money?
Legally, you must register your vehicle in the state where you reside and have valid address proof. Registering in another state purely for tax savings isn’t permitted. If caught, you face penalties and forced re-registration. The BH Series is the legal alternative if you frequently move between states.
What is the difference between road tax and registration charges?
Road tax is a percentage-based state levy on your car’s value. Registration charges are a fixed ₹600 fee paid to the RTO for officially recording the vehicle in your name. Road tax is the expensive part. Registration is nominal.
Does road tax apply on dealer discounts?
No. Road tax is calculated on the full ex-showroom price regardless of any dealer discounts, exchange bonuses, or promotional offers you get. The RTO doesn’t care what deal you negotiated at the showroom.
Planning your car purchase? Understanding road tax is just one piece of the on-road price breakdown. You’ll also need to factor in the registration process and insurance costs to get your true out-of-pocket number.
Road tax rates are current as of March 2026. State governments revise rates periodically. Always verify the latest rates with your local RTO or state transport department before making a purchase decision. This article will be updated quarterly.
