April 12, 2026 in India — The Tata Nexon is India's best-selling compact SUV, available in petrol, diesel, and electric variants. Understanding Nexon tax benefits can help you save lakhs, especially with the EV variant's massive tax advantages.
Whether you choose the affordable petrol Nexon or the tax-advantaged Nexon EV, this guide covers all tax components for 2026.
Nexon Variants and Pricing (2026)
| Variant | Fuel | Ex-Showroom | GST |
|---|---|---|---|
| XE Base | Petrol | Rs 8.00 lakh | Rs 1.44 lakh |
| XM | Petrol | Rs 9.00 lakh | Rs 1.62 lakh |
| XZ | Diesel | Rs 11.00 lakh | Rs 1.98 lakh |
| XZ+ Dark | Diesel | Rs 12.00 lakh | Rs 2.16 lakh |
| Nexon EV Prime | Electric | Rs 14.50 lakh | Rs 72,500 |
| Nexon EV Max | Electric | Rs 16.00 lakh | Rs 80,000 |
Nexon GST Breakdown
Under India GST 2.0:
- Petrol/Diesel Nexon: 18% GST
- Nexon EV: Only 5% GST (government incentive)
- GST savings with EV: Rs 2.07 lakh to Rs 2.30 lakh
State Road Tax for Tata Nexon
| State | Petrol Tax % | Tax on Rs 10L Nexon | EV Tax |
|---|---|---|---|
| Gujarat | 2% | Rs 20,000 | 0% |
| Delhi | 4% | Rs 40,000 | 0% |
| Uttar Pradesh | 5% | Rs 50,000 | 0% |
| Rajasthan | 6% | Rs 60,000 | 0% |
| Tamil Nadu | 8% | Rs 80,000 | 0% |
| Karnataka | 11% | Rs 1,10,000 | 0% |
| Maharashtra | 12% | Rs 1,20,000 | 0% |
Complete Cost Comparison: Nexon Petrol vs EV
For Rs 10 lakh Nexon XM (petrol) vs Rs 14.50 lakh Nexon EV Prime in Maharashtra:
| Component | Petrol XM | EV Prime |
|---|---|---|
| Ex-Showroom | Rs 9,00,000 | Rs 14,50,000 |
| GST | Rs 1,62,000 | Rs 72,500 |
| Road Tax | Rs 1,08,000 | Rs 0 |
| Insurance | Rs 30,000 | Rs 35,000 |
| Total On-Road | Rs 12,00,000 | Rs 15,57,500 |
| Running Cost/km | Rs 3-4 | Rs 0.90 |
Nexon EV Total Tax Savings
Choosing Nexon EV over petrol in high-tax states saves:
- GST savings: Rs 89,500 less
- Road tax exemption: Rs 1.08 lakh saved in Maharashtra
- Total tax advantage: Rs 1.98 lakh+
- 5-year fuel savings: Rs 2-3 lakh additional
BH Series for Nexon
BH Series registration offers consistent savings:
- BH fee (2%): Rs 20,000 on Rs 10 lakh Nexon
- vs Maharashtra: Rs 1,20,000
- BH saves: Rs 1 lakh on road tax alone
Depreciation Benefit for Business Use
Self-employed individuals using Nexon for business can claim:
- Section 32 depreciation: 15% WDV for cars above Rs 10 lakh
- Operating expenses: Fuel, maintenance fully deductible
- No deduction for: Car loan interest (not covered by any section)
Frequently Asked Questions
What GST applies to Tata Nexon petrol?
Tata Nexon petrol and diesel variants attract 18% GST under India GST 2.0. The base XM variant at Rs 9 lakh ex-showroom has Rs 1.62 lakh GST.
Is Nexon EV completely tax-free?
The Nexon EV has reduced GST at 5% and road tax exemption in most states. While not completely tax-free, total tax savings vs petrol Nexon exceed Rs 1.50 lakh.
Which state has cheapest road tax for Nexon?
Gujarat offers the lowest road tax at 2% flat, saving Rs 1 lakh compared to Maharashtra on a Rs 10 lakh Nexon.
Can I claim tax benefit if I use Nexon for business?
Self-employed individuals can claim depreciation under Section 32 and operating expenses. However, car loan interest is not deductible. Consult a CA for proper documentation.
Conclusion
Nexon EV offers substantial tax advantages that make it competitive despite higher upfront cost. Use our Nexon cost calculator to compare petrol vs EV total cost of ownership.
Disclaimer: This article is for informational purposes only. Verify current prices and tax rates with Tata Motors dealers.
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