States With Highest and Lowest On-Road Prices Of Cars in India

A thorough look at the road tax situation in India.
21-Feb-22 06:03 PM IST
  • On-road prices depend heavily on road tax.
  • Road tax is different for different states.
  • Union Territories usually tend to have lower road taxes.

Road tax, which is also sometimes referred to as motor vehicle tax is levied on every new vehicle that you buy. And this could change the on-road prices of vehicles drastically. This is the main reason why cars advertise their prices with a disclaimer noting that the prices are on-road in nature and the final price will be dependent on the state from which you will be purchasing it.

As you may know, road tax changes are based on the state you are purchasing the car from. Another aspect you should know about is that this tax is completely mandatory and there's no way around it. Road tax is levied on the basis of various factors including engine capacity, seating capacity, unladen weight, and price.

And it is ultimately used in the maintenance of the roads you drive on and various other things that help you get a pleasant driving experience. This tax can be paid to the Regional Transport Office (RTO) yearly or as a single payment.

Types of road tax


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States levy different road taxes on different types of vehicles. The first major distinction is between private vehicles and company vehicles. The latter type is taxed slightly higher. Some states also tax their vehicles based on whether they run on petrol, diesel, or CNG. Tax slabs exist for almost all states, which means vehicles costing more than a certain amount will get taxed more than the ones that are below that amount. Apart from that, there are several additional charges added for things like greenification, parking, and more.

State with the highest on-road prices of cars


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Karnataka has remained the state with the highest on-road price of vehicles for a very long time. That's because it has the highest road tax in India. If you're purchasing a four-wheeler below Rs 4 lakh, the road tax will come to 13% of the vehicle's actual price. And if it's a car priced between Rs 5 lakh and Rs 10 lakh, 14% of road tax will be levied on it. The tax increase to 17% for cars between Rs 10 lakh and Rs 20 lakh, and to 18% for vehicles that are priced over Rs 20 lakh. If you're buying an electric car, the road tax comes down drastically, to 4% of the cost of the vehicle.

Andhra Pradesh & Telangana

AP & Telangana range close to Karnataka in levying road-tax on purchase of vehicles. However, their tax structure is quite simple. For cars under Rs 10 lakhs, the tax levied is 12% and for cars above 10 Lakhs, it is 14%.


Maharashtra is also one among states with high on-road prices for cars. Purchase of a car below Rs 10 lakhs will make you incur road tax of 7% for CNG, 11% for petrol and 13% for diesel. Their tax slab is a little bit complicated. So check it out in the table below.

Cost of Vehicle

Road Tax

Private Vehicle Registration

Up to Rs. 10 Lakh

CNG - 7%, Petrol - 11%, Diesel - 13%

Rs. 10 to 20 Lakh

Petrol - 12%, Diesel - 14%

Above Rs. 20 Lakh

Petrol - 13%, Diesel - 15%

Company Vehicle Registration

 All Vehicles

RTO Slabs would be double the cost listed above

States with the lowest on-road prices of cars


The on-road prices of cars are incredibly low in North-Eastern states, as well as Puducherry, and Delhi.


Price of car

Road tax

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 lakhs

Rs 1.25 lakh


Price of car

Road Tax

Up to Rs 6 lakh

Petrol Cars - 4%, Diesel Cars - 5%

Rs 6 to 10 lakh

Petrol Cars - 7%, Diesel Cars - 8.75%

Above Rs 10 lakh

Petrol Cars - 10%, Diesel Cars - 12.5%

MCD parking charges

Rs 2000 for cars priced under

Rs 4000 for the rest of the vehicles.


Price of car

Road Tax

Up to Rs 4 lakh


Rs 4 to Rs 6 lakh


Rs 6 to Rs 12 lakh


Rs 12 to Rs 15 lakh


Rs 15 to Rs 20 lakh


Above Rs 20 lakh


As you can see, the road tax can significantly alter the price of the car you're trying to buy. So, whether you will get the car for cheap or not depends on the state in which you permanently reside.

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