Car tax rates in India 2026 span a wide range depending on vehicle type, ex-showroom price, and state of registration. GST ranges from 5% to 28% (set by GST Council), while road tax ranges from 4% to 18% (set by state governments). Combined, total tax on a ₹10 lakh car ranges from approximately ₹2.3 lakh in Delhi to ₹4.4 lakh in Karnataka — a difference of ₹2.1 lakh just from state road tax variation.

This guide provides the complete table of car tax rates across GST brackets and major Indian states, updated with April 2026 GST 2.0 rates.

GST Tax Rates by Vehicle Type

Small cars (under 4m, petrol under 1200cc): 5% GST. Sub-compact SUVs (Creta, Brezza type): 18% GST (down from 28%). Large SUVs (above ₹15 lakh ex-show): 28% GST. Electric vehicles: 5% GST (lowest bracket).

State Road Tax Comparison

Delhi: 4-8% (lowest). UP: 5-10%. Haryana: 5-9%. Maharashtra: 6-15%. Karnataka: 8-18% (highest). Tamil Nadu: 7-13%.

What is the total tax on a ₹10 lakh car in India?

On a ₹10 lakh car in Delhi: GST 18% = ₹1,80,000 + Road Tax 5% = ₹50,000 = Total tax ₹2,30,000 (~23% of ex-showroom). In Karnataka: GST 18% + Road Tax 13% = ₹3,10,000 (~31% of ex-showroom).

Why do car tax rates differ between states?

Road tax is a state subject under the Indian Constitution. Each state government sets its own road tax rates based on its road infrastructure budget, vehicle density, and policy priorities. GST is uniform across India but road tax varies.

What is the GST rate on a ₹20 lakh luxury car?

A ₹20 lakh luxury car (above ₹15 lakh ex-showroom) attracts 28% GST — the highest GST bracket for vehicles. Additionally, road tax in Delhi (8%) = ₹1,60,000. Total tax: ₹7,20,000 (~36% of ex-showroom).

Are car tax rates different for petrol and electric vehicles?

Yes — electric vehicles attract 5% GST vs 18-28% for petrol/diesel vehicles. EVs are also exempt from road tax in Delhi and receive exemptions in several other states. The tax advantage for EVs is ₹2-5 lakh compared to equivalent petrol vehicles.

How often do car tax rates change in India?

GST rates on vehicles are set by the GST Council and change infrequently. Road tax rates are set by state governments and can change with each state budget. GST 2.0 revised rates in April 2026 — the first major auto tax revision in years.

Official Resources: Parivahan Portal | India GST Portal | NHAI