India Car Tax Calculator 2026

India's GST (Goods and Services Tax) structure for vehicles is tiered by vehicle type and engine specification. Electric vehicles (EVs) attract the lowest rate at 5% GST with no cess, making them significantly cheaper than equivalent petrol vehicles before state taxes are considered.

Small cars with engine capacity under 1200cc (petrol) or 1500cc (diesel) attract 18% GST. Larger petrol cars and SUVs with engine capacity over 1200cc, and diesel vehicles over 1500cc, attract the full 28% GST.

The cess applies specifically to vehicles with engine capacity over 1500cc (petrol) or 1800cc (diesel), or with length over 4 metres and ground clearance over 170mm (the SUV definition). A large sedan with 2000cc petrol engine and length over 4 metres could face 28% GST plus 22% cess, totalling 50% on the ex-showroom price before state taxes.

State RTO (Regional Transport Office) registration fees range from 2-12% of the vehicle's ex-showroom price depending on the state. Delhi charges approximately 4-8% for registration plus fixed fees, while Maharashtra charges approximately 6-12%.

Annual road tax (formed as vehicle tax or road cess) is assessed by each state and ranges from 0% for EVs in incentive states to 15% of vehicle value annually for conventional vehicles in some states. Most states charge between 3-8% annually, with Sikkim, Mizoram, and Meghalaya offering particularly competitive rates.

For EVs, states including Delhi, Maharashtra, Karnataka, Tamil Nadu, Gujarat, and Uttar Pradesh have exempted road tax through various dates (typically 2025 or 2026), creating significant savings. Maharashtra's EV road tax exemption is particularly valuable given the state's high vehicle density.

India's EV policy creates dramatic cost advantages for electric vehicles. At 5% GST versus 28% GST plus cess, a Tata Nexon EV priced at INR 1,499,000 ex-showroom costs approximately INR 1,574,000 on-road (with 5% GST) versus INR 2,099,000+ for the petrol Nexon (with 28% GST plus 15% cess), a difference of over INR 500,000.

State-specific EV subsidies add further advantage. Delhi offers purchase subsidies of up to INR 150,000 for EVs under the Delhi EV Policy, Maharashtra offers up to INR 150,000, and Gujarat up to INR 100,000.

The FAME II (Faster Adoption and Manufacturing of Electric Vehicles) subsidy programme provides up to INR 250,000 for electric four-wheelers based on battery capacity, administered through the NITI Aayog. For a vehicle meeting all FAME II criteria, total government support can reach INR 400,000+.

For buyers prioritising lowest total cost of ownership, the Tata Tiago EV and MG Comet represent exceptional value at approximately INR 800,000-1,200,000 on-road. Both qualify for 5% GST, state EV subsidies, and road tax exemptions in most major states.

For families needing larger vehicles, the Tata Nexon EV Max, Mahindra XUV400, and Hyundai Ioniq 5 offer practical space with 400-500km range at on-road prices of INR 1,800,000-3,500,000. These compete with petrol SUVs at similar price points when GST advantages are factored.

For conventional vehicle buyers, Maruti Dzire (petrol, under 1200cc, 18% GST) and Hyundai Creta (diesel, 28% GST, cess applies) represent opposite ends of the tax spectrum. Choosing the smaller engine option where possible saves significantly on GST.

Registering a vehicle in Goa versus Mumbai for the same vehicle can save INR 80,000-150,000 in total registration and road tax. Goa charges approximately 2-3% total at registration versus Maharashtra's 8-12%, making Goa an attractive registration destination despite potentially higher dealer prices in the state.

Delhi offers particularly competitive EV economics with 5% GST plus INR 150,000 state subsidy plus road tax exemption, making it the cheapest major market for EV purchases. Karnataka (Bangalore) similarly offers excellent EV incentives and is India's largest EV market by volume.

For commercial vehicle registrations, several states offer reduced road tax for vehicles used in goods transport, reflecting their contribution to state logistics networks. This makes the choice of registration state even more significant for business fleet operators.

Enter the vehicle's ex-showroom price in INR and select the state where the vehicle will be registered. The calculator applies the correct GST rate based on vehicle type and engine capacity, adds cess where applicable, and applies state-specific RTO fees and road tax.

Select the fuel type (Electric, Petrol, Diesel, CNG, Hybrid) and engine capacity for precise GST bracket determination. The calculator automatically applies EV incentives where applicable, including reduced GST rates and state subsidies for qualifying vehicles.

Review the complete breakdown including ex-showroom price, GST, cess, RTO registration fee, state road tax, and insurance. The calculator shows the full on-road price and annual road tax renewal cost for the selected state.