With the Road Tax Update 2025, vehicle owners across India are looking at significant changes in how road taxes are calculated and applied. This revision aims to create more uniformity in taxation, promote electric vehicles, and generate revenue for improving transport infrastructure.
If you’re buying a new vehicle or planning interstate registration, this breakdown of state-wise changes and new tax slabs will help you make informed choices.
Why This Road Tax Revision Matters
The revised road tax policy has been implemented with several key goals in mind:
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Standardize tax rates across states
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Align tax policy with BS6 emission norms
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Offer EV incentives for cleaner transport
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Increase state income for infrastructure upgrades
The Road Tax Update 2025 particularly favors eco-conscious vehicle owners and penalizes luxury or high-emission vehicles.
State-wise Road Tax Rates 2025 – Updated List
Here’s a quick look at the state-wise changes for private petrol and diesel vehicles.
Private Vehicle Road Tax Rates (Petrol & Diesel)
| State | Vehicle Cost (₹) | Revised Road Tax (%) |
|---|---|---|
| Maharashtra | Below ₹10 lakh | 11% |
| Above ₹10 lakh | 13% | |
| Delhi | All segments | 12% (13% for diesel cars) |
| Karnataka | ₹5 – ₹10 lakh | 13% |
| Above ₹10 lakh | 18% | |
| Tamil Nadu | All segments | 10% |
| Telangana | All segments | 12% |
| Gujarat | Up to ₹6 lakh | 6% |
| Above ₹6 lakh | 9% | |
| Uttar Pradesh | ₹6 – ₹10 lakh | 10% |
| West Bengal | All private vehicles | 10% – 12% |
Road Tax Update 2025: EV and Green Vehicle Benefits
Electric vehicle owners get the biggest relief under the Road Tax Update 2025. Here’s a look at the state-wise changes for EV tax exemptions and discounts.
EV Road Tax Exemptions by State
| State | EV Road Tax Rate (2025) | Exemption Validity |
|---|---|---|
| Delhi | 0% | Till 2026 |
| Maharashtra | 0% | Till 2025 |
| Tamil Nadu | 1% | Indefinite (as per policy) |
| Karnataka | 0% | 5 years |
| Uttar Pradesh | 0% | 3 years |
What’s New in the Road Tax Update 2025
The 2025 update includes several key changes:
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Shift to ex-showroom price-based tax slabs
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Enhanced road tax for luxury cars and SUVs
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Special benefits for EVs and green vehicles
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Penalty hikes for delayed registration and renewal
How the Road Tax Update 2025 Affects You
If You’re Buying a New Vehicle
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Expect a higher on-road price for petrol/diesel vehicles
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Consider EVs for tax savings and incentives
If You’re a Commercial Fleet Owner
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Be prepared for increased registration costs in urban areas
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Re-registration in another state may involve additional taxes
If You’re a Used Car Buyer
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Tax at the time of ownership transfer will be based on revised slabs
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Check depreciation-linked rates before purchase
Tips for Vehicle Owners in 2025
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Always check your state transport department’s website before purchasing or registering a vehicle
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Use on-road price calculators to factor in road tax costs
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If relocating, research tax implications in your new state
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Opt for electric or hybrid vehicles to save on taxes
FAQs on Road Tax Update 2025
What is the basis for calculating road tax in 2025?
Most states have shifted to calculating road tax as a percentage of the vehicle’s ex-showroom price. Factors like engine type, vehicle segment, and fuel type also apply in some regions.
Are electric vehicles completely exempt from road tax?
Yes, in several states like Delhi, Maharashtra, and Karnataka, electric vehicles are fully exempt under the Road Tax Update 2025. However, exemption periods vary by state.
Can I transfer my vehicle to another state without paying extra tax?
In most cases, if the road tax in the new state is higher, you’ll need to pay the difference. You may also need to apply for a refund from your original state.
Will the revised road tax impact my car’s resale value?
Yes. Higher road taxes can increase the on-road price, which might reduce demand and resale value, especially for high-end fuel-based vehicles.
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