Question 1

How is road tax calculated in India?

Accepted Answer

Road tax in India is calculated as a percentage of the vehicle's ex-showroom price. The rate varies by state, vehicle type (car/bike/EV), fuel type (petrol/diesel/CNG/EV), and the price slab. For example, Delhi charges 4% for petrol cars under Rs.6 lakh, 7% for cars between Rs.6 lakh and Rs.10 lakh, and 10% for cars above Rs.10 lakh. Maharashtra charges 11% for petrol cars under Rs.10 lakh and 13% above Rs.10 lakh. Electric vehicles get 0% road tax in most states as an incentive for EV adoption. Two-wheelers typically pay about 60-70% of the four-wheeler rate in the same state. Road tax is a one-time payment made at the time of vehicle registration at the RTO.

Question 2

Which state has the lowest road tax for cars in India?

Accepted Answer

Among major states, Haryana has the lowest road tax for petrol cars at 5%, followed by Punjab at 6% and Gujarat at 6%. Delhi is very competitive at 4% for cars under Rs.6 lakh. For EVs, most states including Delhi, Uttar Pradesh, Rajasthan, Gujarat, and West Bengal charge 0% road tax. High-tax states include Karnataka (13% for petrol cars), Andhra Pradesh (12%), and Tamil Nadu (10%). The difference in road tax can be significant on expensive vehicles — for a Rs.20 lakh car, Karnataka charges Rs.2.6 lakh in road tax while Haryana charges only Rs.1 lakh. Vehicle registration is done in the state where the buyer resides, so tax savings by registering in a different state are generally not permitted.

Question 3

Is road tax zero for electric vehicles in India?

Accepted Answer

Yes, most Indian states have reduced road tax on electric vehicles (EVs) to zero or near-zero as part of their EV promotion policies. States like Delhi, Uttar Pradesh, Rajasthan, Gujarat, West Bengal, Telangana, Haryana, Punjab, and Andhra Pradesh charge 0% road tax on EVs. Karnataka charges a reduced 4% on EVs compared to 13% on petrol cars. Tamil Nadu offers 0% for EVs priced below Rs.10 lakh. Maharashtra charges 7% for EVs. This road tax exemption, combined with subsidies under FAME-II and state EV policies, can result in savings of Rs.50,000 to Rs.3 lakh or more on premium EVs. The exemption is typically time-bound and tied to state EV policy windows, so it is advisable to verify current rates with your state RTO before purchase.

Question 4

Can I transfer road tax if I move to another state?

Accepted Answer

Yes, if you relocate to another state for more than 12 months, you are required by the Motor Vehicles Act to re-register your vehicle in the new state and pay road tax there. You can apply for a refund of the unexpired portion of road tax paid in the original state (this is typically calculated on a pro-rata basis for states that collect annual or term-based tax, but most states collect lifetime road tax as a one-time payment). For lifetime road tax states, the refund process involves submitting Form 22 at the original state RTO, though in practice refunds can be difficult to obtain. You will need to pay road tax in the new state at that state's applicable rate. The process involves: obtaining a No Objection Certificate (NOC) from the original state RTO, applying for re-registration in the new state RTO, and paying the applicable road tax difference or full tax in the new state.

Question 5

What is the difference between road tax for diesel and petrol cars?

Accepted Answer

Most Indian states charge higher road tax on diesel vehicles compared to petrol vehicles, typically 2-5 percentage points more. For example, Karnataka charges 13% on petrol cars but 18% on diesel cars — a difference of 5%. Andhra Pradesh charges 12% on petrol and 14% on diesel. Uttar Pradesh charges 8% on petrol and 10% on diesel. This premium tax on diesel is a policy measure to discourage diesel vehicles due to their higher particulate emissions. On a Rs.15 lakh diesel car in Karnataka, this means paying Rs.75,000 more in road tax compared to a petrol variant. Buyers choosing diesel for better fuel economy should factor in this higher road tax when computing total cost of ownership.

Road Tax Calculator India 2025