Two people buy the exact same car, at the same ex-showroom price. One lives in Himachal Pradesh, the other in Karnataka. The Karnataka buyer pays about ₹1.15 lakh more to put that car on the road, on a ₹10 lakh car, purely because of state road tax. Nothing about the car is different. Only the state is.
We pulled the road tax rate for all 36 states and union territories and worked out what the same car actually costs to register in each one. This is data most buyers never see in one place, because dealers only ever quote your own city. Here is the full picture, ranked cheapest to most expensive, plus the fuel twist that lets EV buyers skip road tax almost everywhere.
At a glance
- Cheapest state: Himachal Pradesh, at just 2.5% road tax on a ₹10 lakh petrol car.
- Most expensive: Karnataka, at 14%, followed by five states at 13%.
- The gap: road tax runs from 2.5% to 14% of the car’s price across India.
- It grows with price: the same-car gap between cheapest and dearest state is about ₹0.69 lakh on a ₹6 lakh car, ₹1.15 lakh at ₹10 lakh, ₹2.10 lakh at ₹15 lakh, and ₹3.75 lakh on a ₹25 lakh car.
- EVs pay 0% road tax in almost every state, which is a bigger saving than most buyers realise.
What this study covers
- Road tax by state: the full ranked table
- The cheapest and most expensive states
- Why the gap grows with the car’s price
- The fuel twist: diesel, CNG and the EV zero
- How to pay less road tax, legally
- How we calculated this
- FAQ
Road tax by state in India: the full ranked table
This is road tax on a ₹10 lakh ex-showroom petrol car, for all 36 states and UTs, ranked from cheapest to most expensive on-road cost. The on-road figure adds road tax, a constant insurance estimate and the standard registration charges, so the ranking reflects the state’s own charges.
| Rank | State / UT | Road tax | Tax amount | On-road price |
|---|---|---|---|---|
| 1 | Himachal Pradesh | 2.5% | ₹25,000 | ₹10.63 lakh |
| 2 | Arunachal Pradesh | 5% | ₹50,000 | ₹10.88 lakh |
| 3 | Gujarat | 6% | ₹60,000 | ₹10.98 lakh |
| 4 | Ladakh | 6% | ₹60,000 | ₹10.98 lakh |
| 5 | Meghalaya | 6% | ₹60,000 | ₹10.98 lakh |
| 6 | Nagaland | 6% | ₹60,000 | ₹10.98 lakh |
| 7 | Bihar | 7% | ₹70,000 | ₹11.08 lakh |
| 8 | Chandigarh | 7% | ₹70,000 | ₹11.08 lakh |
| 9 | Dadra & Nagar Haveli and Daman & Diu | 7% | ₹70,000 | ₹11.08 lakh |
| 10 | Haryana | 7% | ₹70,000 | ₹11.08 lakh |
| 11 | Jharkhand | 7% | ₹70,000 | ₹11.08 lakh |
| 12 | Manipur | 7% | ₹70,000 | ₹11.08 lakh |
| 13 | Mizoram | 7% | ₹70,000 | ₹11.08 lakh |
| 14 | Sikkim | 7% | ₹70,000 | ₹11.08 lakh |
| 15 | Tripura | 7% | ₹70,000 | ₹11.08 lakh |
| 16 | Assam | 8% | ₹80,000 | ₹11.18 lakh |
| 17 | Chhattisgarh | 8% | ₹80,000 | ₹11.18 lakh |
| 18 | Punjab | 8% | ₹80,000 | ₹11.18 lakh |
| 19 | Andaman & Nicobar Islands | 9% | ₹90,000 | ₹11.28 lakh |
| 20 | Goa | 9% | ₹90,000 | ₹11.28 lakh |
| 21 | Jammu & Kashmir | 9% | ₹90,000 | ₹11.28 lakh |
| 22 | Lakshadweep | 9% | ₹90,000 | ₹11.28 lakh |
| 23 | Madhya Pradesh | 9% | ₹90,000 | ₹11.28 lakh |
| 24 | Odisha | 9% | ₹90,000 | ₹11.28 lakh |
| 25 | Puducherry | 9% | ₹90,000 | ₹11.28 lakh |
| 26 | Uttar Pradesh | 9% | ₹90,000 | ₹11.28 lakh |
| 27 | Uttarakhand | 9% | ₹90,000 | ₹11.28 lakh |
| 28 | Delhi | 10% | ₹100,000 | ₹11.38 lakh |
| 29 | West Bengal | 11% | ₹110,000 | ₹11.48 lakh |
| 30 | Andhra Pradesh | 12% | ₹120,000 | ₹11.58 lakh |
| 31 | Kerala | 13% | ₹130,000 | ₹11.68 lakh |
| 32 | Maharashtra | 13% | ₹130,000 | ₹11.68 lakh |
| 33 | Rajasthan | 13% | ₹130,000 | ₹11.68 lakh |
| 34 | Tamil Nadu | 13% | ₹130,000 | ₹11.68 lakh |
| 35 | Telangana | 13% | ₹130,000 | ₹11.68 lakh |
| 36 | Karnataka | 14% | ₹140,000 | ₹11.78 lakh |
The cheapest and most expensive states
Cheapest 10 (lowest road tax): Himachal Pradesh (2.5%), Arunachal Pradesh (5%), Gujarat (6%), Ladakh (6%), Meghalaya (6%), Nagaland (6%), then a big group at 7%, including Bihar, Chandigarh, Haryana and Jharkhand.
Most expensive 10 (highest road tax): Karnataka (14%), Kerala, Maharashtra, Rajasthan, Tamil Nadu and Telangana (all 13%), Andhra Pradesh (12%), West Bengal (11%), Delhi (10%) and the large 9% band that includes Uttar Pradesh, Madhya Pradesh and Odisha.
The pattern is clear: the southern and western states, plus Kerala and Rajasthan, sit at the expensive end, while the north (Himachal, Haryana, Chandigarh) and the northeast register cars much more cheaply. Gujarat is the standout among the big car markets, at a low 6%.
Why the gap grows with the car's price
Road tax is a percentage, so the more expensive the car, the bigger the rupee gap between states. Worse, many states charge a higher percentage as the price rises, so the effect compounds.
| Ex-showroom price | Cheapest state (on-road) | Dearest state (on-road) | Same-car gap |
|---|---|---|---|
| ₹6 lakh hatchback | Himachal Pradesh, ₹6.39 lakh | Karnataka, ₹7.08 lakh | ~₹0.69 lakh |
| ₹10 lakh compact SUV | Himachal Pradesh, ₹10.63 lakh | Karnataka, ₹11.78 lakh | ~₹1.15 lakh |
| ₹15 lakh SUV | Himachal Pradesh, ₹16.00 lakh | Karnataka, ₹18.10 lakh | ~₹2.10 lakh |
| ₹25 lakh premium | Himachal Pradesh, ₹26.63 lakh | Karnataka, ₹30.38 lakh | ~₹3.75 lakh |
On a ₹25 lakh car, the difference between the cheapest and most expensive state is nearly ₹4 lakh, the price of a whole second small car. This is why the state you register in matters far more on a premium car than on a budget one.
Want the exact on-road number for your car and your state? Our Road Tax Calculator gives you the precise figure in seconds, and if you are financing it, the Car Loan EMI Calculator turns that on-road price into a real monthly EMI.
The fuel twist: diesel, CNG and the EV zero
The headline table is for petrol. Your fuel choice moves the number:
- Diesel usually costs more. Most states add a surcharge, commonly around 2 percentage points, on top of the petrol rate. So a diesel in Karnataka can attract 16% rather than 14%.
- CNG often gets a small discount, around 2 percentage points lower than petrol in several states.
- Electric cars pay 0% road tax in almost every state. This is the big one, and most buyers underestimate it.
That EV waiver is worth real money. Take a ₹15 lakh car in Karnataka: the petrol version carries about ₹2.55 lakh in road tax, while the EV pays zero. So the EV’s on-road price sits far closer to its ex-showroom price than any petrol car’s does. It is one reason an EV can be less of a jump on-road than the sticker suggests. We explain this in full in our upcoming electric cars in India 2026 guide, and you can compare running costs with the Car Running Cost Calculator.
How to pay less road tax, legally
You cannot just register your car in a cheaper state to dodge tax. Registration is tied to where you normally keep the vehicle, and using a car long-term on out-of-state plates is an offence that invites fines and a forced re-registration. That said, there are genuine, legal routes:
- The BH-series (Bharat series) number plate. If you are a central-government or defence employee, work for a PSU, or work for a private company with offices in four or more states, you can register on an all-India BH plate. It lets you pay road tax in shorter instalments and move between states without re-registering and paying tax twice.
- A genuine relocation. If you actually move to a low-tax state, you register there legitimately. Some buyers time a big-car purchase around a real move.
- Choosing your fuel. As above, an EV skips road tax almost everywhere, and CNG is often a notch cheaper than petrol.
For most people the honest takeaway is simpler: you pay your own state’s rate, so factor it into your budget before you fall in love with a car. A ₹12 lakh ex-showroom SUV is a very different on-road number in Karnataka than in Gujarat.
Road tax is only one piece of what a car really costs you. The bigger one is depreciation. See our companion study on the real 5-year cost of owning India’s best-selling cars, which shows why the cheapest car to buy is often not the cheapest to own.
How we calculated this
We used each state’s published road tax percentage for private cars, by fuel type and price band, and added the standard fixed charges (registration, hypothecation, smart card, number plate and any green tax). To compare fairly, we held a constant first-year insurance estimate across every state, so the ranking reflects only the state’s own charges, not insurance differences. On-road price equals ex-showroom plus road tax plus insurance plus fixed charges.
Road tax rules change, and some states use slightly different slabs for factors like seating or engine size. Treat these figures as an accurate guide for comparison, not a final quote. Always confirm the on-road price at your local RTO or dealer before you buy. Data compiled by CarThings, last updated for 2026.
FAQ
Which state has the lowest road tax in India? Himachal Pradesh, at about 2.5% of a car’s ex-showroom price on a ₹10 lakh petrol car, is the lowest. Arunachal Pradesh (5%) and Gujarat (6%) are next.
Which state has the highest road tax? Karnataka, at 14% on a ₹10 lakh petrol car, is the highest, followed by Kerala, Maharashtra, Rajasthan, Tamil Nadu and Telangana at 13%.
How much more does the same car cost in a high-tax state? On a ₹10 lakh car, about ₹1.15 lakh more on-road between the cheapest and most expensive state. On a ₹25 lakh car the gap grows to nearly ₹3.75 lakh, because road tax is a percentage and often rises with price.
Do electric cars pay road tax in India? In almost every state, EVs pay 0% road tax. On a ₹15 lakh car in a high-tax state like Karnataka, that waiver alone is worth around ₹2.55 lakh, which keeps an EV’s on-road price close to its ex-showroom price.
Can I register my car in a cheaper state to save tax? Not unless you genuinely live there. Registration is tied to where you keep the car, and running out-of-state plates long-term is an offence. The legal route for transferable employees is the BH-series number plate.
