Car tax in India is set by each state, so buyers of similar cars are paying very different amounts depending on where the vehicle is registered. In Karnataka, as per a 2026 guide on an unofficial calculator site, the road tax is 13% to 18% of the car's price, which is the highest band among the states listed. Uttar Pradesh charges 8% for cars up to Rs 10 lakh and 10% above that.
Delhi starts at 4% for cars up to Rs 6 lakh, and a 2026 report from GreenTax.in puts the next slab at 7% and the top slabs at 10% to 12.5%. In Maharashtra, the tax also varies by fuel, and in the lowest price band petrol cars pay 11%, diesel cars 13% and CNG cars 8%, as per a 2026 rate table.
Who collects it and on what price
The Motor Vehicles Act, 1988, which came into force on 1 July 1989, is the central law for vehicle registration and permits, while each state levies motor vehicle tax under its own Motor Vehicles Taxation Act.
Most state rate tables apply the percentage to the ex-showroom price of the car and not to the on-road price. Individuals buying a car are therefore calculating the tax on a lower base than the final amount they pay at the dealership.
A car owner who moves to another state will have to pay that new state's road tax within a month of the move. Late payment attracts a penalty on top of the arrears, and the grace period differs from state to state.
Cesses and electric car waivers
Several states add a separate charge on top of the percentage tax. Tamil Nadu adds a fixed Rs 2,250 road safety tax, and Telangana has added a Rs 5,000 road safety cess from March 2026. Andhra Pradesh, under its 2026 amendment, charges a 10% cess on the life tax. In Maharashtra, the 2% road safety cess is charged on the tax amount as a separate item and is not part of the petrol rate mentioned above.
For electric cars, a 2026 state-wise table from the AutoFy Store blog shows 0% road tax in Delhi, Maharashtra, Tamil Nadu and Telangana and in Haryana up to Rs 30 lakh. Kerala reduced its tax on electric vehicles up to Rs 10 lakh from 5% to 3% through a Finance Bill passed on 1 July 2026.
As EV waivers changed in many states during 2026, the state notification is the final authority.
