We all know that the price of a new car differs from state to state. The on-road or final price of a new car consists of registration charges, insurance amount, and, most importantly, road tax. The road tax depends on the state the buyer lives in, and due to different road taxes in different states, a car’s price varies vastly, depending on the city it is registered in. For example, the on-road price of the Hyundai Creta EX variant is Rs. 14.27 lakh in Delhi, whereas the same model has an on-road price of Rs. 15.39 lakh in Bengaluru. In this article, we list the states that have the lowest road tax in India.
Himachal Pradesh
With the lowest road tax in India, Himachal Pradesh is the cheapest state to own a car. On cars with up to 1000 cc engines, this state levies a tax of a mere 2.5 percent, and for cars with larger engines, the road tax is 3 percent.
| Car | On-Road Price in Shimla |
| Maruti Suzuki Alto | Rs 4.70 – 6.87 lakh |
| Tata Nexon | Rs 8.89 – 17.53 lakh |
| Hyundai Creta | Rs 12.41 – 23 lakh |
Punjab
Compared to most states, Punjab has a rather simple road tax structure. An 8 percent road tax is levied on all vehicles, with an additional 1 percent cess for social security.
| Car | On-Road Price in Amritsar |
| Maruti Suzuki Alto | Rs 4.85 – 7.08 lakh |
| Tata Nexon | Rs 9.22 – 18.08 lakh |
| Hyundai Creta | Rs 12.60 – 24.02 lakh |
Pondicherry
Depending on the ex-showroom price of the car, the road tax varies from 6 to 9 percent in Pondicherry, officially known as Puducherry, the capital of the Union Territory of Puducherry. This makes it one of the cheapest places to own a new car.
| Car | On-Road Price in Pondicherry |
| Maruti Suzuki Alto | Rs 4.36 – 6.48 lakh |
| Tata Nexon | Rs 8.84– 19.28 lakh |
| Hyundai Creta | Rs 12.52 – 23 lakh |
Jharkhand
Compared to its neighbouring states, Jharkhand has significantly lower road taxes. This eastern state levies 6 percent road tax on vehicles with an ex-showroom of less than Rs 15 lakh, and 9 percent on vehicles with a higher than Rs 15 lakh ex-showroom price.
| Car | On-Road Price in Ranchi |
| Maruti Suzuki Alto | Rs 4.79 – 6.97 lakh |
| Tata Nexon | Rs 9.22 – 17.95 lakh |
| Hyundai Creta | Rs 12.71 – 23.33 lakh |
Gujrat
The Gujarat state imposes a 6 percent road tax on all privately registered vehicles, making it one of the cheapest states to own a car.
| Car | On-Road Price in Ahmedabad |
| Maruti Suzuki Alto | Rs 4.71 – 6.87 lakh |
| Tata Nexon | Rs 8.90 – 17.39 lakh |
| Hyundai Creta | Rs 12.53 – 22.91 lakh |
Chandigarh
In the Union Territory of Chandigarh, the road tax is 6 percent for vehicles that cost less than Rs 20 lakh. For vehicles that cost more than Rs 20 lakh, the road tax is 8 percent. A special tax benefit in Chandigarh is a 0 percent road tax on vehicles registered for people with disabilities and social welfare workers.
| Car | On-Road Price in Chandigarh |
| Maruti Suzuki Alto | Rs 4.87 – 7.12 lakh |
| Tata Nexon | Rs 9.08 – 17.72 lakh |
| Hyundai Creta | Rs 12.42 – 24.02 lakh |
Assam
The road tax in Assam ranges between 5 to 12 percent, depending on the ex-showroom price of a vehicle, offering a rather economical car owner experience to the public.
| Car | On-Road Price in Dispur |
| Maruti Suzuki Alto | Rs 4.70 – 7.12 lakh |
| Tata Nexon | Rs 9.27 – 18.03 lakh |
| Hyundai Creta | Rs 12.84 – 24.36 lakh |
Jammu and Kashmir
With a uniform 9 percent road tax on all vehicles, the road tax structure of Jammu and Kashmir is simple and impressively affordable.
| Car | On-Road Price in Jammu |
| Maruti Suzuki Alto | Rs 4.83 – 7.06 lakh |
| Tata Nexon | Rs 9.13 – 17.85 lakh |
| Hyundai Creta | Rs 12.64 – 23.30 lakh |
Uttarakhand
The road tax in Uttarakhand varies between 8 to 10 percent, depending on the ex-showroom price of a vehicle.
| Car | On-Road Price in Dehradun |
| Maruti Suzuki Alto | Rs 4.80 – 7.05 lakh |
| Tata Nexon | Rs 9.14 – 18.03 lakh |
| Hyundai Creta | Rs 12.87 – 23.64 lakh |
Haryana
Haryana levies 5 to 10 percent road tax on private vehicles, belonging to states with the cheapest road tax in India.
| Car | On-Road Price in Gurugram |
| Maruti Suzuki Alto | Rs 4.61 – 6.94 lakh |
| Tata Nexon | Rs 9.18 – 17.57 lakh |
| Hyundai Creta | Rs 12.63 – 23.54 lakh |
FAQs
Which are the states with the cheapest road tax in India?
The states with the cheapest road tax in India are Himachal Pradesh, Punjab, Pondicherry, Jharkhand, Gujarat, Chandigarh, Assam, Jammu and Kashmir, Uttarakhand, and Haryana.
What is road tax?
Road tax is the tax imposed by the state to fund the road infrastructure and maintenance. It is paid at the time of the vehicle’s registration.
Which northern states have the cheapest road tax in India?
The northern states with the cheapest road tax in India are Himachal Pradesh, Punjab, Chandigarh, Haryana, and Jammu and Kashmir.
What is the difference between road tax and toll tax?
Road tax is collected by RTOs for the infrastructure and maintenance of roads within the state. Whereas, toll tax is collected when a vehicle crosses certain interstate expressways, tunnels, bridges, and other national and state highways.
