April 12, 2026 in India — The Honda City is India's longest-running premium sedan, known for its refined engine and spacious cabin. Understanding Honda City tax components helps you make an informed decision in the competitive sedan market.
This guide covers GST rates, state road taxes, and total ownership costs for the fifth-generation Honda City in 2026.
Honda City Variants and Pricing (2026)
| Variant | Engine | Ex-Showroom |
|---|---|---|
| SV MT | 1.5L Petrol MT | Rs 11.50 lakh |
| V MT | 1.5L Petrol MT | Rs 12.50 lakh |
| VX MT | 1.5L Petrol MT | Rs 13.50 lakh |
| ZX MT | 1.5L Petrol MT | Rs 14.50 lakh |
| ZX CVT | 1.5L Petrol CVT | Rs 15.50 lakh |
Honda City GST
Under India GST 2.0:
- Honda City petrol: 18% GST
- GST on SV MT: Rs 11.5L × 18% = Rs 2.07 lakh
- GST on ZX CVT: Rs 15.5L × 18% = Rs 2.79 lakh
Honda City vs Competing Sedans
| Model | Ex-Showroom | GST (18%) |
|---|---|---|
| Honda City ZX MT | Rs 14.50 lakh | Rs 2.61 lakh |
| Hyundai Verna SX | Rs 15.00 lakh | Rs 2.70 lakh |
| Skoda Slavia Style | Rs 14.50 lakh | Rs 2.61 lakh |
| Maruti Ciaz Alpha | Rs 9.50 lakh | Rs 1.71 lakh |
State Road Tax for Honda City
| State | Sedan Tax % | Tax on Rs 14L City |
|---|---|---|
| Gujarat | 2% | Rs 28,000 |
| Delhi | 6% | Rs 84,000 |
| Uttar Pradesh | 8% | Rs 1,12,000 |
| Rajasthan | 9% | Rs 1,26,000 |
| Tamil Nadu | 8% | Rs 1,12,000 |
| Karnataka | 11% | Rs 1,54,000 |
| Maharashtra | 12% | Rs 1,68,000 |
Complete On-Road Cost: Honda City ZX MT
For Honda City ZX MT (Rs 14.50 lakh ex-showroom):
| Component | Maharashtra | Gujarat | Savings |
|---|---|---|---|
| Ex-Showroom | Rs 14,50,000 | Rs 14,50,000 | — |
| GST (18%) | Rs 2,61,000 | Rs 2,61,000 | — |
| Road Tax | Rs 1,74,000 | Rs 29,000 | Rs 1,45,000 |
| Insurance | Rs 40,000 | Rs 40,000 | — |
| Total On-Road | Rs 19,25,000 | Rs 17,80,000 | Rs 1,45,000 |
Sedan Tax Classification
In most Indian states, sedans like the Honda City fall into a specific tax category:
- Delhi: Sedans taxed at 6% (same as hatchbacks)
- Maharashtra: Sedans at 12% (lower than SUVs)
- Karnataka: Sedans at 11% (lower than SUVs)
BH Series for City Owners
BH Series registration offers savings and flexibility:
- BH fee (2%): Rs 29,000 on Rs 14.50 lakh City
- vs Maharashtra road tax: Rs 1,74,000
- BH saves: Rs 1,45,000
Insurance for Honda City
- Third-party: Rs 10,000-12,000/year
- Comprehensive: Rs 35,000-45,000/year
- Add-ons: Engine protect, zero depreciation
Frequently Asked Questions
What GST applies to Honda City?
The Honda City petrol variants attract 18% GST. For the ZX MT at Rs 14.50 lakh, GST amounts to Rs 2.61 lakh.
Is Honda City road tax different from SUVs?
In most states, sedans are taxed at lower rates than SUVs. For example, Maharashtra charges 12% for sedans vs 15% for SUVs.
Which state has lowest road tax for sedan?
Gujarat has the lowest road tax at 2% for all vehicle types, including sedans. Delhi also offers competitive rates at 4-6%.
Is Honda City or Hyundai Verna better for taxes?
Both sedans attract the same 18% GST and similar road tax rates. The choice should be based on features and running costs rather than tax considerations.
Conclusion
Honda City offers competitive pricing in the premium sedan segment. Use our sedan on-road calculator to compare Honda City with Verna and Slavia.
Disclaimer: This article is for informational purposes only. Verify current prices with Honda dealers.
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