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.
अस्वीकरण: यह लेख केवल सूचनात्मक उद्देश्यों के लिए है। वर्तमान कीमतों और कर दरों को टाटा मोटर्स डीलरों से सत्यापित करें।
Official Resources: Parivahan Portal | Vahan Road Tax | India GST Portal | FAME-III Scheme
Frequently Asked Questions
Q: What is the current road tax rate for cars in India 2026?
Road tax rates in India vary by state and vehicle category. For new cars, GST is charged at 5% for EVs, 18% for hybrids under 1,200cc, and up to 28% for petrol/diesel SUVs. State road tax is charged separately and varies from Rs3,000-15,000 annually depending on the state's slab system. Check your specific state's RTO website for current rates.
Q: How do I calculate my car road tax online in India?
You can calculate your car road tax using online calculators available on state RTO portals and CarTax.online. The calculation considers your vehicle's ex-showroom price, fuel type, engine capacity, and state of registration. Road tax is payable annually or for the vehicle's lifetime depending on your state's rules.
Q: Is GST included in the road tax for new cars in India?
No — GST and road tax are separate charges. GST is a central tax charged by the vehicle manufacturer at the time of purchase. State road tax is a separate annual or one-time charge levied by your state's transport department. Both apply at the time of first registration, and annual road tax continues for subsequent years.
Q: Do electric vehicles get tax benefits in India 2026?
Yes — electric vehicles in India qualify for a reduced GST rate of 5% (down from 28% for petrol cars). Under FAME-III subsidies, EVs may also qualify for additional state-level incentives, reduced road tax, and free registration in many states. The exact benefits vary by state.
Q: What happens if I don't pay my car road tax on time?
If you don't pay road tax, your vehicle's registration can be flagged in the Vahan database, preventing renewal of fitness certificates and creating legal liability during police checks. Penalties range from Rs200-500 per day of default in most states. Road tax is a legal requirement under the Motor Vehicles Act.