Road Tax in Karnataka: Applicability, Calculation, Payment & More

Learn everything about Karnataka Road tax, including how to calculate road tax for your vehicle, payment methods, applicable rates, and exemptions.
Last updated 6 months ago

Road tax is an essential aspect of vehicle ownership in India. With its expanding road network and increasing number of vehicles, Karnataka has established a systematic process for collecting road tax. The government imposes a road tax on vehicles operating on public roads, and it serves as a crucial source of funds for maintaining and upgrading the state’s infrastructure.

In Karnataka, road tax rates and regulations vary based on the type, age, fuel variant, and cost of the vehicle. Thus, automobile owners should understand how the Karnataka road tax is calculated and the necessary steps to pay it.

Read on for a comprehensive understanding of Karnataka road tax —from computation and payment to delays, penalties, key rules, and potential exemptions.

What is Road Tax and Why is it Important?

Road tax is a government levy imposed on vehicles for travelling on public roads. It is typically paid at the time of vehicle registration or annually. The funds raised are used to maintain and upgrade roads, highways, and bridges, making travel safer and smoother. Road tax also encourages legal compliance, helping avoid fines or vehicle seizure. 

Additionally, it finances public transport and road safety initiatives. By paying road tax, vehicle owners contribute to improving infrastructure and managing traffic, enhancing the safety and efficiency of the roads for everyone. Overall, road tax is critical for providing funds to maintain roads and ensure the legitimate use of vehicles.

Road Tax Rules in Karnataka

As of May 2025, Karnataka has implemented significant changes to its road tax regulations under the Karnataka Motor Vehicles Taxation (Amendment) Act, 2025. Here’s a comprehensive overview:

  1. Applicability of Road Tax in Karnataka

Karnataka road tax is compulsory for all vehicles registered under the Karnataka Transport Department. The tax varies according to the type of vehicle:

  • Private Vehicles: These include personal automobiles, motorbikes, scooters, and other privately owned vehicles.
  • Commercial Vehicles: This category encompasses taxis, buses, trucks, and goods carriers, subject to higher tax slabs under commercial use.
  • Electric Vehicles (EVs): As per the latest updates, the Karnataka government will impose a lifetime tax on EVs based on their cost price.  
  1. Factors Affecting Road Tax Rates

Karnataka determines road tax based on several factors, including:

  • Vehicle Type: Commercial vehicles incur higher road taxes than private vehicles due to their more intensive use and commercial operations.
  • Fuel Type: Diesel vehicles typically carry higher tax rates than petrol and CNG vehicles because of their greater emissions. Electric vehicles enjoy substantial tax exemptions.
  • Engine Capacity: Vehicles with larger engine displacements are subjected to higher road tax, reflecting increased wear on infrastructure and environmental impact.
  • Vehicle Price: Road tax is generally calculated as a percentage of the vehicle’s purchase cost, so higher-priced vehicles pay higher taxes.
  • Vehicle Age: Older vehicles often attract additional charges, such as green tax, to discourage polluting vehicles and promote cleaner alternatives.
  1. Lifetime Tax, Green Tax, and Exemptions
  • Lifetime Tax: Karnataka offers vehicle owners the option of paying a single lifetime tax during registration. This eliminates the need to pay road tax annually or upon renewal, except in cases of vehicle ownership transfer.
  • Green Tax: A green tax is applied to older, polluting vehicles (primarily diesel vehicles over a certain age) to encourage eco-friendly transport and reduce pollution.
  • Exemptions: Under Karnataka’s updated policies, EVs and hybrids under ₹25 lakh are exempt from road tax.    

How to Calculate Road Tax in Karnataka?

Calculating road tax in Karnataka involves understanding various factors influencing the tax amount. Check out the section below for further details:

Parameters Used for Road Tax Calculation

Parameters commonly used for road tax calculation are:

FactorsDescription
Vehicle TypeDifferentiates between private and commercial vehicles.
Fuel TypeDiesel vehicles may attract higher taxes; EVs often receive exemptions.
Vehicle CostTax is a percentage of the ex-showroom price of the vehicle.
Engine CapacityHigher engine displacement (cc) often results in higher tax slabs.
Vehicle AgeOlder vehicles may incur green tax to encourage the adoption of eco-friendly transport. 
Usage TypePersonal, transport, or goods carriage usage affects the tax rate.
Vehicle WeightRelevant for commercial/goods vehicles – heavier vehicles attract higher tax.
Location of RegistrationSome urban zones may have slightly varying rules (e.g., BBMP limits).

Sample Road Tax Calculation for Different Vehicles

Here’s a table with a practical example showing how road tax varies for different types of cars based on the latest Karnataka road tax rules:

Vehicle PriceLifetime Tax Rate
Internal Combustion Engine (ICE) Vehicles Priced Under ₹10 Lakh5%
ICE Vehicles Priced Between ₹10 Lakh and ₹15 Lakh9%
ICE Vehicles Priced Over ₹15 Lakh15%
EVs and Hybrids Priced Under ₹25 LakhExempted
EVs Priced Over ₹25 Lakh10%

How to Pay Road Tax in Karnataka?

The various methods of paying Karnataka road tax are listed below:

Online Payment Process

Paying your road tax online in Karnataka via the Parivahan portal is easy. Follow these simple steps:

  • Visit the Parivahan Portal: Go to https://parivahan.gov.in/.
  • Navigate to Vehicle-Related Services: Click “Online Services” and select “Vehicle Related Services.”
  • Choose Your State and RTO: Select “Karnataka” as your state from the dropdown list and then choose your individual Regional Transport Office (RTO).
  • Enter Vehicle Details: Enter the last 5 digits of your vehicle’s chassis numbers. Click on “Validate Regn_no/Chasi_no.”
  • Generate OTP: Click on “Generate OTP.” Enter the OTP received at your registered mobile number and submit it.
  • Update Insurance Details: Verify that your vehicle’s insurance details are updated.
  • Review Tax Details: The portal will show your vehicle details and the tax amount due. Check all details for accuracy.
  • Proceed to Payment: Select your desired payment option (credit/debit card, net banking, etc.) and proceed with the payment.
  • Download Receipt: Save the payment receipt after successful payment for your reference.

Offline Payment Options

Paying road tax offline in Karnataka requires visiting your regional Transport Office (RTO). Following is a brief step-by-step guide to assist you through the process:

  • Find Your RTO: Determine the RTO where your vehicle is registered. For example, if you’re in Bangalore, check the list of RTOs on the official Karnataka Transport Department website.
  • Collect the Road Tax Form: Go to the RTO and ask for the relevant road tax payment form.
  • Fill Out the Form: Enter all the correct information about your vehicle, such as the registration number, chassis number, engine number, and owner’s details.
  • Submit Required Documents: Provide the required documents along with the completed form.
  • Pay the Road Tax: Go to the identified counter to pay the calculated amount of road tax. The accepted mode of payment is cash, demand draft, or any other as indicated by the RTO.
  • Get the Receipt: Upon payment, make sure you obtain the formal receipt as a confirmation of payment. 

Documents Required for Road Tax Payment

To pay Karnataka road tax, ensure you have the following documents:

  • Vehicle Registration Certificate (RC): Proof of your vehicle’s registration.
  • Vehicle Invoice: Original invoice detailing the vehicle purchase price.
  • Valid Insurance Certificate: Proof of active vehicle insurance.
  • Pollution Under Control (PUC) Certificate: A valid PUC certificate for the vehicle.
  • Address Proof: You can use your Aadhaar card, passport, voter ID, rental agreement, or utility bills to prove your address.
  • No Objection Certificate (NOC): If the vehicle is re-registered from another state, a NOC from the old RTO is required.
  • Form KMVT14: Applicable for vehicles re-registered from other states.
  • Identity Proof: Aadhaar card, PAN card, or passport for proof of your identity.

Penalties for Late Payment of Road Tax in Karnataka

In Karnataka, prompt road tax payment is imperative to avoid fines. Below is what you should know:

  • Grace Period: When you bring a vehicle from another state into Karnataka, you can use it for 30 days without paying the road tax.
  • No Interest Within 30 Days: No interest or fine is charged if the road tax is paid within 30 days.
  • Consequences of Delay: Failure to pay the road tax after the 30-day window can result in your vehicle being impounded. It will only be released upon full payment of the due road tax.
  • Lifetime Tax with Penalty: If you keep using an out-of-state car in Karnataka for more than one year without paying the road tax, you might be forced to pay the lifetime road tax and penalties.

Paying your road tax on time can prevent all these penalties and legal hassles, particularly if you’re bringing a car from another state to Karnataka.

Refunds and Road Tax Transfer Rules in Karnataka

The refunds and road tax transfer rules in Karnataka are explained below: 

Conditions for Road Tax Refund

Here are some of the general conditions to claim road tax refunds:

  • Vehicle registration and documentation for the new state have been completed.
  • The residents of Karnataka need to inform the CRTI of the completion of vehicle registration.
  • RTO Form 16 and Form DT are provided with the application.
  • A motor vehicle would be levied a lower tax rate than the current rate.
  • Individuals paying a higher tax are eligible for a refund.
  • If a vehicle owner has already returned a registration certificate and taxation card.
  • When the registration certificate of a vehicle was rejected for some reason.

Procedure for Applying for a Road Tax Refund/Transfer

  • Eligibility: Where a vehicle registered in Karnataka is transferred to another state and re-registered there.
  • Obtain NOC: Obtain a No Objection Certificate (NOC) from the Karnataka RTO before shifting the vehicle.
  • Re-registration: Get the vehicle registered in the new state and receive the new Registration Certificate (RC).
  • Notify CRTI: Report the new registration to the Central Road Tax Information (CRTI) system.
  • Submit Application: Get a refund at the initial Karnataka RTO on Form 16.
  • Documents Needed: To claim a refund, ensure you have all the necessary documents.
  • Refund Calculation: The refund is computed pro rata, considering the unexpired portion of the vehicle’s life (usually 15 years).
  • Processing Time: The refund process could take a few months. It’s best to follow up with the RTO periodically.

Comparison: Road Tax in Karnataka vs Other States

Here’s a simplified comparison table with states, based on a ₹10 lakh private petrol car and corresponding electric vehicle (EV) tax status:

StateRoad Tax for ₹10 lakh Petrol CarElectric Vehicle Tax
Karnataka₹50,000 (5%)Exempted
Maharashtra₹1,10,000 (11%)Exempted (100%)
Tamil Nadu₹1,00,000 – ₹1,50,000 (10–15%)Exempted (100%) till 2025
Gujarat₹60,000 (6%)Exempted (100%)

Note: Road tax rates are approximate and may vary based on specific vehicle details and RTO assessments. Always consult the respective state’s RTO for precise calculations.

Karnataka road tax is crucial for maintaining infrastructure and financing road development programs. Taxation rates differ based on vehicle type, engine size, and fuel type. Electric vehicles are exempt (up to a certain cost price), promoting green transport.

Vehicle owners can avoid penalties and contribute to the city’s development by understanding how road tax is calculated and ensuring timely payment. Utilising online platforms for payment makes the process easier and more efficient, ensuring compliance and smooth vehicle ownership. Stay informed to make the most of Karnataka’s updated road tax system.

FAQs About Karnataka Road Tax

  1. Q. What is the road tax rate in Karnataka for private cars?

    The Karnataka road tax rate for private vehicles varies according to their cost. The lifetime tax rates are usually 5% for vehicles that cost less than ₹10 lakh, 9% for vehicles costing between ₹10 lakh and ₹15 lakh, and 15% for vehicles that cost more than ₹15 lakh.

  2. Q. Is there a road tax discount for EVs in Karnataka?

    In Karnataka, EVs and hybrids under ₹25 lakh are exempt from road tax. Only EV models costing above ₹25 lakh will be charged with a 10% lifetime tax.

  3. Q. Can I pay road tax online in Karnataka?

    Yes, Karnataka has an online portal where one can calculate and pay road tax conveniently. Payments can be made via net banking, credit/debit cards, and other digital modes.

  4. Q. What happens if I delay road tax payment in Karnataka?

    Delays in road tax payment may result in penalties. The vehicle owner can also suffer legal repercussions, like impoundment, until the taxes and penalties are paid.

  5. Q. How is road tax calculated for commercial vehicles in Karnataka?

    In Karnataka, a higher road tax is charged for commercial vehicles depending on their type, weight, and cost. Commercial vehicles like taxis, buses, and trucks usually pay a lifetime tax of a percentage of the vehicle cost, generally more than private vehicles, reflecting their commercial use and wear on infrastructure.

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