Which State Has the Highest Road Tax?

Karnataka has the highest road tax in India.

When considering on-road taxes for vehicles, Karnataka stands out with its higher rates, particularly for four-wheelers. This makes it the state with the most substantial road tax burden for vehicle owners in the country. The tax structure varies based on the vehicle's price segment.

Understanding Karnataka's Road Tax Structure

The road tax in Karnataka is calculated as a percentage of the vehicle's ex-showroom price. This progressive tax system means that as the price of the car increases, the percentage of tax levied also rises, contributing to higher overall on-road prices for vehicles in the state.

Here's a breakdown of the road tax rates for four-wheelers in Karnataka:

Note: These percentages are applied to the vehicle's price to determine the road tax component of the on-road price.

Impact on Vehicle On-Road Prices

The high road tax rates in Karnataka significantly influence the on-road price of a car. The on-road price includes not only the ex-showroom price but also other charges like registration fees, insurance, and the state road tax. Due to Karnataka's elevated road tax, purchasing a new vehicle in the state often results in a higher final cost compared to many other states.

For more detailed information on car on-road prices across various states, you can refer to resources like Car On-Road Prices in India: Highest & Lowest by State.