Buying a new car comes with multiple expenses, and road tax is one of the most significant. This tax varies from state to state and can greatly influence the vehicle’s final on-road price. Some states in India have notably lower road taxes, making car registration more affordable. Knowing which states offer the lowest car registration charges in India can help you save money while staying compliant with legal requirements.
In this guide, we’ll explore the states with the lowest road tax in India and how choosing the right location can benefit car buyers.
List of states with lowest road tax
Here’s a list of the states offering the lowest RTO tax in India:
|
State
|
Criteria
|
Road Tax
|
|
Himachal Pradesh
|
Cars below 1000cc
|
2.5%
|
|
Cars above 1000cc
|
3%
|
|
Chandigarh
|
Cost of car: Upto 20 Lakh
|
6%
|
|
Cost of car: Above 20 Lakh
|
8%
|
|
Jharkhand
|
Cost of car: Upto 15 Lakh
|
6%
|
|
Cost of car: Above 15 Lakh
|
9%
|
|
Gujrat
|
All vehicles
|
6%
|
|
Haryana
|
Cost of car: Upto 6 Lakh
|
5%
|
|
Cost of car: 6 to 20 Lakh
|
8%
|
|
Cost of car: Above 20 Lakh
|
10%
|
|
Jammu & Kashmir
|
All vehicles
|
9%
|
|
Punjab
|
All vehicles
|
8%
|
|
Odisha
|
Cost of car: Upto 5 Lakh
|
6%
|
|
Cost of car: 5 to 10 Lakh
|
8%
|
|
Cost of car: Above 10 Lakh
|
10%
|
Conclusion
Choosing a state with the lowest RTO charges in India can significantly reduce the overall cost of car ownership. States like Himachal Pradesh offer lower tax rates, making vehicle registration more affordable.
However, road tax is just one factor to consider when buying a car. A comprehensive car insurance policy is equally essential to protect your vehicle from theft, accident and damage. Additionally, mandatory third party insurance covers liabilities for injuries or damages caused to others.
To maximise your savings, strike the right balance between lower road tax and adequate insurance coverage, ensuring both affordability and long-term financial security.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the topic featured in the article. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.