Travel · Free tool
RTO Tax Calculator
Compute the on-road price of any new car or two-wheeler in any Indian state. Different states tax vehicles very differently — Gujarat charges 6%, Karnataka 13-18%, Kerala up to 21%. Plus insurance, FASTag, and other fees.
Slab-based; cars >₹20L pay 13-14%. EVs exempt.
RTO rate: 11% in Maharashtra
≈ 14.4% above ex-showroom
How on-road price is built up
The price you finally pay at the dealership is ex-showroom + RTO road tax + insurance + registration + smart-card + FASTag — and sometimes a hypothecation charge if you take a loan. Of these, RTO road tax is the single largest variable and depends entirely on which state you register the vehicle in.
Why the same car costs ₹2 lakh more in some states
Road tax rates in India are set by each state, not the centre. A ₹15 lakh petrol car attracts roughly:
- Gujarat — 6% (~₹90,000)
- Delhi — 10% (~₹1.5L) but with a green-tax discount on petrol
- Maharashtra — 11–13% (~₹1.65–1.95L)
- Karnataka — 13–18% depending on age + fuel (~₹1.95–2.7L)
- Kerala — up to 21% (~₹3.15L)
That >₹2 lakh swing on the same car explains why many people register in lower-tax states even when they live elsewhere — but you must register within 30 days at your residence state if it's your primary use case (Section 47 of the Motor Vehicles Act).
Two-wheelers
Bike road tax tracks the same state-wise pattern, usually at 6–14% of ex-showroom. EV two-wheelers (Ather, Ola S1, TVS iQube) are tax-exempt in 18+ states as of 2026 — a 6–10% saving on top of the FAME-II subsidy.
EV exemptions and rebates
Most states zero-rate EVs through at least 2027. Delhi, Maharashtra, Karnataka, Tamil Nadu, Telangana, Andhra Pradesh and West Bengal currently have 0% road tax on electric cars. Combined with FAME-II / state EV subsidies and lower running cost (use our EV vs petrol cost calculator), an EV breaks even with a petrol car around 40,000–60,000 km of use.
FAQ
Why does road tax vary so much by state?
It's a state subject. Karnataka: 13-18% of price. Delhi: 5-12.5%. Maharashtra: 10-12%. Some states (UP, MP) charge by engine cc. Check state-specific rates.
One-time vs annual?
Personal vehicles: one-time at registration (15 years). Commercial: annual or 5-year. Beyond 15 years: re-registration with fresh road tax (and higher pollution tests).
Cross-border tax?
If you move states, pay new state's road tax. Old state may refund pro-rata (rare and bureaucratic). For short stays, NOC + tourist permit avoids re-registration.