India is one of the few countries where the same car can cost ₹1,40,000 more just because of where you register it. Road tax (officially called Motor Vehicle Tax or State Road Tax) is levied by state governments and is entirely separate from the GST you pay at the showroom. It is a one-time lifetime tax paid at the time of registration — and the rates differ so dramatically between states that savvy buyers have been crossing state borders to save money for decades.
This is the most comprehensive state-wise road tax list for 2026, covering all 28 states and major Union Territories, with specific rates for petrol, diesel, and electric vehicles.
What Is Road Tax and Who Sets It?
Road tax is collected by the state government under the Motor Vehicles Act, 1988. Each state legislature sets its own rates, which is why the differences are so dramatic. Unlike GST (which is uniform nationally), road tax is entirely a state subject.
Road tax is typically calculated as a percentage of the ex-showroom price (or sometimes the invoice/vehicle cost) and is paid once for a lifetime registration. When the car is sold to a second owner, road tax is usually paid again at a lower rate (typically 50–75% of the original rate in most states).
Complete State-Wise Road Tax List 2026 (Petrol Cars)
Rates below are for new petrol cars purchased by individuals. Diesel and EV rates are noted separately where they differ significantly.
| State / UT | Road Tax Rate (Petrol) | On ₹10L Car | On ₹20L Car | EV Rate |
|---|---|---|---|---|
| Himachal Pradesh | 3% | ₹30,000 | ₹60,000 | 0–3% |
| Punjab | 3–5% | ₹30,000–₹50,000 | ₹60,000–₹1,00,000 | 0% |
| Haryana | 4–5% | ₹40,000–₹50,000 | ₹80,000–₹1,00,000 | 0% |
| Uttarakhand | 4–5% | ₹40,000–₹50,000 | ₹80,000–₹1,00,000 | 0% |
| Rajasthan | 4–8% | ₹40,000–₹80,000 | ₹80,000–₹1,60,000 | 0% |
| Delhi | 4–7% | ₹40,000–₹70,000 | ₹80,000–₹1,40,000 | 0% |
| Uttar Pradesh | 5–8% | ₹50,000–₹80,000 | ₹1,00,000–₹1,60,000 | 0% |
| Madhya Pradesh | 6–8% | ₹60,000–₹80,000 | ₹1,20,000–₹1,60,000 | 0% |
| Bihar | 6–9% | ₹60,000–₹90,000 | ₹1,20,000–₹1,80,000 | 0% |
| Gujarat | 6–7% | ₹60,000–₹70,000 | ₹1,20,000–₹1,40,000 | 0% |
| Jharkhand | 6–7% | ₹60,000–₹70,000 | ₹1,20,000–₹1,40,000 | 0% |
| Chhattisgarh | 5–7% | ₹50,000–₹70,000 | ₹1,00,000–₹1,40,000 | 0% |
| Odisha | 6–8% | ₹60,000–₹80,000 | ₹1,20,000–₹1,60,000 | 0% |
| West Bengal | 7–9% | ₹70,000–₹90,000 | ₹1,40,000–₹1,80,000 | 0–5% |
| Assam | 7–8% | ₹70,000–₹80,000 | ₹1,40,000–₹1,60,000 | 0% |
| Maharashtra | 7–11% | ₹70,000–₹1,10,000 | ₹1,40,000–₹2,20,000 | 0% |
| Goa | 8–9% | ₹80,000–₹90,000 | ₹1,60,000–₹1,80,000 | 0% |
| Telangana | 9–12% | ₹90,000–₹1,20,000 | ₹1,80,000–₹2,40,000 | 0% |
| Andhra Pradesh | 9–12% | ₹90,000–₹1,20,000 | ₹1,80,000–₹2,40,000 | 0% |
| Tamil Nadu | 10–13% | ₹1,00,000–₹1,30,000 | ₹2,00,000–₹2,60,000 | 0% |
| Kerala | 10–14% | ₹1,00,000–₹1,40,000 | ₹2,00,000–₹2,80,000 | 0% |
| Karnataka | 13–18% | ₹1,30,000–₹1,80,000 | ₹2,60,000–₹3,60,000 | 0% |
Note: Rates within a range depend on vehicle price slabs. Higher-priced vehicles attract the higher rate in most states. EV rates of 0% indicate a waiver in force as of April 2026 — subject to state government policy review.
The Biggest Difference: Delhi vs Karnataka
Let us take a concrete example using two identical cars — a Maruti Suzuki Grand Vitara at ₹12.5 lakh ex-showroom — and compare the total on-road cost in Delhi vs Bangalore (Karnataka):
| Component | Delhi | Bangalore (Karnataka) | Difference |
|---|---|---|---|
| Ex-showroom price | ₹12,50,000 | ₹12,50,000 | — |
| Road Tax (Lifetime) | ₹75,000 (6%) | ₹2,12,500 (17%) | ₹1,37,500 |
| Registration Fee | ₹2,000 | ₹2,000 | — |
| Insurance (1st Year) | ₹32,000 | ₹32,000 | — |
| Handling/Logistics | ₹8,000 | ₹8,000 | — |
| Estimated On-Road Price | ₹13,67,000 | ₹15,04,500 | ₹1,37,500 |
The same car costs ₹1,37,500 more in Bangalore than in Delhi — purely because of road tax. On a ₹20 lakh car, the difference exceeds ₹2 lakh.
State Comparison: Delhi vs Neighbouring States (for NCR Buyers)
Buyers in the Delhi NCR region have options. Here's how the neighbouring states compare on a ₹10 lakh petrol car:
| State | Road Tax Rate | Tax on ₹10L Car | Saving vs Delhi |
|---|---|---|---|
| Himachal Pradesh | 3% | ₹30,000 | ✅ Save ₹10,000–₹40,000 |
| Haryana | 4–5% | ₹40,000–₹50,000 | ✅ Comparable to Delhi |
| Uttarakhand | 4–5% | ₹40,000–₹50,000 | ✅ Comparable |
| UP | 5–8% | ₹50,000–₹80,000 | ❌ Higher than Delhi |
| Delhi | 4–7% | ₹40,000–₹70,000 | Baseline |
For NCR buyers, registering in Haryana or Uttarakhand can offer comparable or slightly lower road tax — but the practical savings are modest and come with complications (see below).
South India Comparison: The High-Tax Zone
Southern states — particularly Karnataka, Kerala, Tamil Nadu, and Telangana — levy some of the highest road taxes in India. This makes them challenging for budget car buyers:
| State | Road Tax (₹10L car) | Road Tax (₹20L car) |
|---|---|---|
| Karnataka | ₹1,30,000–₹1,80,000 | ₹2,60,000–₹3,60,000 |
| Kerala | ₹1,00,000–₹1,40,000 | ₹2,00,000–₹2,80,000 |
| Tamil Nadu | ₹1,00,000–₹1,30,000 | ₹2,00,000–₹2,60,000 |
| Telangana | ₹90,000–₹1,20,000 | ₹1,80,000–₹2,40,000 |
| Andhra Pradesh | ₹90,000–₹1,20,000 | ₹1,80,000–₹2,40,000 |
Which States Offer the Cheapest Road Tax for Electric Vehicles?
Nearly every Indian state currently offers a 100% road tax waiver on electric vehicles as part of EV adoption incentive programmes. This makes the EV equation particularly attractive in high-tax states like Karnataka and Kerala — because the road tax saving alone on an EV vs a petrol equivalent can reach ₹1.5–₹3.6 lakh.
| State | EV Road Tax | Saving vs Equivalent Petrol Car |
|---|---|---|
| Karnataka | 0% (waived) | Save ₹1.3L–₹3.6L vs petrol car |
| Kerala | 0% (waived) | Save ₹1.0L–₹2.8L vs petrol car |
| Tamil Nadu | 0% (waived) | Save ₹1.0L–₹2.6L vs petrol car |
| Delhi | 0% (waived) | Save ₹40,000–₹1.4L vs petrol car |
| Maharashtra | 0% (waived) | Save ₹70,000–₹2.2L vs petrol car |
In Karnataka, buying an EV instead of a petrol car can save over ₹3.6 lakh in road tax alone on a ₹20 lakh vehicle. Combined with the lower GST (5% vs 18–28% on petrol), EV incentives are the most effective way to reduce the on-road cost in high road-tax states.
Can You Buy a Car in a Cheaper State and Drive It Home?
This is the most common question — and the answer is: yes, but with important caveats.
You can purchase a car from any state dealership regardless of where you live. However, you must register the vehicle in the state where it is primarily kept/used. Under the Motor Vehicles Act, a vehicle must be registered in the state where the owner resides — not where it was purchased.
Registering in a different state than your residence is technically a violation and can lead to:
- Notice from the state transport authority to re-register in your home state
- Requirement to pay the home state's road tax (minus what was already paid, with no refund from the first state in most cases)
- Insurance claims complications if the registered address doesn't match the usual parking location
What actually happens in practice: Many buyers in border areas (e.g., Bangalore buyers registering in Andhra Pradesh) do this successfully. The risk is low for the first few years but increases with RTO enforcement drives. It is not a recommended strategy for salaried employees with permanent city addresses.
Diesel Car Road Tax: Is It Different?
Several states levy a higher road tax on diesel vehicles compared to petrol:
| State | Petrol Car Rate | Diesel Car Rate | Extra for Diesel |
|---|---|---|---|
| Delhi | 4–7% | 5–8% | +1% |
| Karnataka | 13–18% | 14–18% | +1% |
| Maharashtra | 7–11% | 8–12% | +1% |
| Telangana | 9–12% | 10–13% | +1% |
| Tamil Nadu | 10–13% | 11–14% | +1% |
Frequently Asked Questions
Which Indian state has the lowest road tax in 2026?
Himachal Pradesh has the lowest road tax for petrol cars at 3% of ex-showroom price — making it the cheapest state for vehicle registration. Punjab and Haryana follow at 3–5%. However, you can only register a car in the state where you reside, so this benefit is primarily relevant for residents of these states.
Which state has the highest road tax in India?
Karnataka levies the highest road tax in 2026 — up to 18% on petrol cars priced above a threshold, making Bangalore one of the most expensive cities to own a car in India. Kerala and Tamil Nadu follow with rates up to 14% and 13% respectively.
Is road tax included in the ex-showroom price?
No. Road tax is NOT included in the ex-showroom price. The ex-showroom price includes only the vehicle cost and GST. Road tax is a separate charge paid to the state government at the time of registration and is part of the "on-road price" or "on-road cost" that dealers quote.
Can road tax be paid in instalments?
Road tax is a lifetime one-time tax and must typically be paid in full at registration. Most states do not offer instalment options. However, some states allow annual road tax payment for certain vehicle categories — check with your local RTO for your specific case.
Is road tax refundable if I sell my car?
In most states, road tax is non-refundable when you sell a used car. The second buyer typically pays a lower rate of road tax (usually 50–75% of the original rate) at the time of re-registration. When you export a car or permanently move to another country, a road tax refund may be possible in some states.
Do I have to pay road tax again if I move to another state?
Yes. If you move permanently to another state and the vehicle has been in the new state for more than 12 months, you must re-register it and pay that state's road tax. You can apply for a refund of the unused portion of the previous state's road tax (calculated on a pro-rated basis), but the process varies by state and refunds are not guaranteed.
Conclusion: The Real Cost of Road Tax in 2026
Road tax is the single biggest variable in your car's on-road price in India — far more variable than dealer margins or insurance costs. The difference between the cheapest and most expensive states can exceed ₹2–3 lakh on a mid-size car.
Key takeaways:
- North Indian states (HP, Punjab, Haryana, Uttarakhand) offer the cheapest road tax at 3–5%
- South Indian states (Karnataka, Kerala, Tamil Nadu) are the most expensive at 10–18%
- Every state currently waives road tax for EVs — the saving in Karnataka alone can exceed ₹3.6 lakh on a ₹20L EV
- You cannot legally exploit low-tax state registrations unless you actually reside there
Use our India Car Tax Calculator to get the exact on-road price including current road tax for your state, car model, and price band.