Have you ever wondered why the price tag on a new car always comes with a note saying ‘ex-showroom price‘? Well, that’s because the final amount you pay is significantly shaped by the road tax levied in your state. Whether you’re eyeing a sleek sedan or a robust SUV, the state you live in can play a big role in determining how much you actually shell out.
In this comprehensive guide, we’ll navigate through the complex terrain of Road Transport Office (RTO) and road taxes across India, highlighting which state has the lowest RTO tax and where you’ll encounter the highest road tax. Check out our guide on RTO transfer charges from one state to another in India to understand the rules and expected costs when moving your vehicle registration.
The Basics of Vehicle Registration and Road Tax in India
When you buy a car, new or used, registering it is not just a formality but a legal necessity. This process, managed by the Regional Transport Offices (RTOs) across India, involves a series of charges, the most significant of which is the road tax. This tax, varying vastly from state to state, is what we’ll focus on, especially highlighting the regions with the lowest road tax in India.
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Which State Has Lowest RTO Tax in India?
But first, let’s break down the typical fees involved in car registration:
| Type of Fee | Fee Details |
|---|---|
| Vehicle Registration Charges | ₹600 – Applicable to all types of vehicles |
| Hypothecation Charges | ₹1,500 – Imposed when the vehicle is under a loan |
| Number Plate Fees | ₹230 – ₹400 – Same cost for High-Security Number Plate |
| Parking Fee/State Development Charges | ₹2,000 – MCD Parking Fees (vehicles under ₹4 Lakh) ₹4,000 – MCD Parking Fees (vehicles above ₹4 Lakh) |
| Temporary Registration Charges | ₹1,500 – ₹2,500 – Temporary Registration (valid for up to 1 month) |
| Road Tax Fees | Road Tax fees vary by state and location |
| FastTag Charges | ₹500 – ₹600 – FastTag fees required upon vehicle purchase |
Exploring Road Tax Across States
Road tax in India is a crucial component of your vehicle’s on-road price. It’s calculated based on factors like engine capacity, seating capacity, and the vehicle’s price. Let’s delve into the states with the highest and lowest road tax rates.
Which State has Highest Road Tax in India
- Karnataka: Often topping the list, Karnataka imposes a road tax of up to 18% for luxury vehicles. This hefty tax significantly elevates the on-road price of cars.
- Andhra Pradesh & Telangana: Both states follow closely with a simpler tax structure, charging 12% for cars under Rs 10 lakhs and 14% for those above.
- Maharashtra: Here, the road tax varies with the fuel type, making it a bit complex.
Which State has Lowest Road Tax in India
- Himachal Pradesh: Known for its scenic beauty and now, for its low RTO taxes, Himachal Pradesh is amongst the states with the most affordable road tax rates.
- North-Eastern States: These states, along with Delhi and Puducherry, offer some of the lowest on-road prices for cars in India.
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Which State Has Lowest Road Tax in India?
Road Tax in Himachal Pradesh
| Type of Vehicle | Road Tax (%) |
|---|---|
| Cars below 1000cc | 2.5% |
| Cars above 1000cc | 3% |
Road Tax Fees in Puducherry (Pondicherry)
| Cost of Vehicle | Road Tax (in INR) |
|---|---|
| Up to Rs. 5 Lakh | Rs. 8000 |
| Rs. 5 to 8 Lakh | Rs. 11,000 |
| Rs. 8 to 15 Lakh | Rs. 15,000 |
| Rs. 15 to 20 Lakh | Rs. 60,000 |
| Rs. 20 to 30 Lakh | Rs. 1.1 Lakh |
| Above Rs. 30 Lakh | Rs. 1.25 Lakh |
Road Tax In New Delhi
| Cost of Vehicle | Private Vehicle Registration (%) | Company Vehicle Registration (%) |
|---|---|---|
| Up to Rs. 6 Lakh | Petrol Cars – 4% | Petrol Cars – 5% |
| Diesel Cars – 5% | Diesel Cars – 6.25% | |
| Rs. 6 to 10 Lakh | Petrol Cars – 7% | Petrol Cars – 8.75% |
| Diesel Cars – 8.75% | Diesel Cars – 10.94% | |
| Above Rs. 10 Lakh | Petrol Cars – 10% | Petrol Cars – 12.5% |
| Diesel Cars – 12.5% | Diesel Cars – 15.63% |
Road Tax in Uttar Pradesh
| Cost of Vehicle | Road Tax (%) |
|---|---|
| Up to Rs. 10 Lakh | 8% |
| Above Rs. 10 Lakh | 10% |
| For Ghaziabad, Noida, Kanpur, Meerut, Agra, etc. | Additional Temporary Charges of Rs. 1500 |
| For used cars (less than 15 years old) | Green Tax will be levied, chargeable at the time of renewal of registration |
Road Tax in Haryana
| Cost of Vehicle | Road Tax (%) |
|---|---|
| Up to Rs. 6 lakh | 5% |
| 6 to 20 Lakh | 8% |
| Above 20 Lakh | 10% |
Road Tax in Chandigarh
| Cost of Vehicle | Road Tax (%) |
|---|---|
| Up to 20 Lakh | 6% |
| Above 20 Lakh | 8% |
| People with Disabilities | 0% (Road tax exemption in Chandigarh) |
| NGO and Social Welfare workers (registered with Social Welfare Department) who work for people with disabilities | 0% (Road tax exemption in Chandigarh) |
Road Tax in Punjab
| Type of Contribution | Rate (%) |
|---|---|
| Road Tax | 8% |
| Social Security Contribution | 1% |
Road Tax in Maharashtra
| Cost of Vehicle | Private Vehicle Registration (%) | Company Vehicle Registration (%) |
|---|---|---|
| Up to Rs. 10 Lakh | CNG – 7% Petrol – 11% Diesel – 13% | All Vehicles – RTO Slabs would be double the cost. |
| Rs. 10 to 20 Lakh | Petrol – 12% Diesel – 14% | All Vehicles – RTO Slabs would be double the cost listed above |
| Above Rs. 20 Lakh | Petrol – 13% Diesel – 15% | All Vehicles – RTO Slabs would be double the cost listed above |
Road Tax in Gujarat
| Type of Vehicle | Private Vehicle Registration | Company Vehicle Registration |
|---|---|---|
| All Vehicles | 6% | 12% |
| Additional VAT Duty | CBU Imported Cars – Road Tax will be Double the rates of CKD Cars | 5% |
Road Tax in Rajasthan
| Cost of Vehicle | Road Tax (%) |
|---|---|
| Cars up to 800cc | Petrol – 6% Diesel – 8% |
| Cars between 800cc and 1200cc | Petrol – 9% Diesel – 11% |
| Cars above 1200cc | Petrol – 10% Diesel – 12% |
Road Tax in Andhra Pradesh
| Cost of Vehicle | Road Tax (%) | Additional Tax (%) |
|---|---|---|
| Up to Rs. 10 Lakh | 12% | 2% (when buying a 2nd vehicle under the same name) |
| Above Rs. 10 Lakh | 14% | 2% (when buying a 2nd vehicle under the same name) |
Road Tax in Telangana
| Cost of Vehicle | Road Tax (%) |
|---|---|
| Up to Rs. 10 Lakh | 12% |
| Above Rs. 10 Lakh | 14% |
Road Tax in Karnataka
| Cost of Vehicle | Road Tax (%) |
|---|---|
| Up to Rs. 5 Lakh | 13% |
| Rs. 5 to 10 Lakh | 14% |
| Rs. 10 to 20 Lakh | 17% |
| Above Rs. 20 Lakh | 18% |
Road Tax in Tamil Nadu
| Cost of Vehicle | Road Tax (%) |
|---|---|
| Up to Rs. 10 Lakh | 10% |
| Above Rs. 10 Lakh | 15% |
Road Tax in Kerala
| Cost of Vehicle | Road Tax (%) |
|---|---|
| Up to Rs. 5 Lakh | 6% |
| Rs. 5 to 10 Lakh | 8% |
| Rs. 10 to 15 Lakh | 10% |
| Rs. 15 to 20 Lakh | 15% |
| Above Rs. 20 Lakh | 20% |
Road Tax in Odisha
| Cost of Vehicle | Road Tax (%) |
|---|---|
| Up to Rs. 5 Lakh | 6% |
| Rs. 5 to 10 Lakh | 8% |
| Above Rs. 10 Lakh | 10% |
Road Tax in West Bengal
| Type of Vehicle | One-Time Tax for 5 Years | One-Time Tax for 15 Years |
|---|---|---|
| Cars up to 800cc | 5.5% or Rs. 17,500 (Whichever is higher) | 10% or Rs. 40,000 (Whichever is higher) |
| Cars between 800cc and 1490cc | 5.5% or Rs. 25,000 (Whichever is higher) | 10% or Rs. 55,000 (Whichever is higher) |
| Cars between 1490 and 1999cc | 5.5% or Rs. 35,000 (Whichever is higher) | 10% or Rs. 80,000 (Whichever is higher) |
| Cars above 2000cc | 5.5% or Rs. 45,000 (Whichever is higher) | 10% or Rs. 1 Lakh (Whichever is higher) |
Road Tax in Bihar
| Cost of Vehicle | Road Tax (%) |
|---|---|
| Up to Rs. 8 Lakh | 7% |
| Above Rs. 8 Lakh | 13% |
Road Tax in Jharkhand
| Cost of Vehicle | Road Tax (%) | Additional Tax for 2nd Car (%) |
|---|---|---|
| Up to Rs. 15 Lakh | 6% | 3% |
| Above Rs. 15 Lakh | 9% | 3% |
Road Tax in Uttarakhand
| Cost of Vehicle | Road Tax (%) |
|---|---|
| Up to Rs. 5 Lakh | 8% |
| Rs. 5 to 10 Lakh | 9% |
| Above Rs. 10 Lakh | 10% |
Road Tax in Jammu & Kashmir
| Cost of Vehicle | Road Tax (%) |
|---|---|
| All Vehicles | 9% |
Road Tax in Madhya Pradesh
| Cost of Vehicle | Road Tax (%) |
|---|---|
| Up to Rs. 10 Lakh | 8% |
| Rs. 10 to 20 Lakh | Petrol – 8% Diesel – 9% |
| Above Rs. 20 Lakh | 16% |
Road Tax in Assam
| Cost of Vehicle | Road Tax (%) |
|---|---|
| Up to Rs. 4 Lakh | 5% |
| Rs. 4 to Rs. 6 Lakh | 6% |
| Rs. 6 to Rs. 12 Lakh | 7% |
| Rs. 12 to Rs. 15 Lakh | 7.5% |
| Rs. 15 to Rs. 20 Lakh | 9% |
| Above Rs. 20 Lakh | 12% |
Road Tax in Goa
| Cost of Vehicle | Road Tax (%) |
|---|---|
| Up to Rs. 6 Lakh | 9% |
| Rs. 6 to 10 Lakh | 11% |
| Above Rs. 10 Lakh | 12% |
Infrastructure Cess – only applicable on cars above Rs. 10 Lakh
| Cost of Vehicle | Road Tax (%) | Infrastructure Cess (INR) |
|---|---|---|
| Rs. 10 to 20 Lakh | 12% | Rs. 12,000 |
| Rs. 20 to 40 Lakh | 12% | Rs. 40,000 |
| Rs. 40 to 60 Lakh | 12% | Rs. 75,000 |
| Above Rs. 60 Lakh | 12% | Rs. 1,00,000 |
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FAQs on Road Tax in India
Why Pay Road Tax?
Road tax is essential for the maintenance and expansion of the road infrastructure.
How is Road Tax Calculated?
It depends on factors like engine capacity, seating capacity, and vehicle weight.
Difference between Road Tax vs. Toll Tax
Road tax is for state roads, while tolls are for interstate travel.
Who Should Pay Road Tax?
All vehicle owners, at the time of purchase or when moving to a different state.
Which State Has the Lowest RTO Tax in India?
Himachal Pradesh has the lowest RTO tax rates in India.
Which State Has the Highest RTO Tax in India?
Karnataka has the highest RTO tax rates in India.
Wrap Up
Understanding the nuances of road tax in different states can significantly influence your car-buying decision. With regions like Himachal Pradesh offering the lowest road tax in India, and states like Karnataka has the highest road tax, this guide should help you navigate the complexities of RTO charges. Remember, the next time you’re car shopping, a glance at the road tax rates might just sway your decision!
