When buying a car in India, the final on-road price depends not only on the ex-showroom cost but also on road tax, which varies from state to state. Since road tax is decided by state governments, the same vehicle can have a different on-road price depending on where it is registered. In 2026, some states continue to offer lower road tax rates, making car ownership more affordable for buyers.
Himachal Pradesh is considered one of the cheapest states for road tax, especially for small cars, where the tax percentage is significantly lower compared to most other states. Punjab and Chandigarh also have relatively affordable road tax slabs, which helps reduce the total cost of buying a vehicle. Gujarat is another state where road tax rates are moderate, making it a preferred option for buyers looking to save on registration charges. Jharkhand also falls in the lower tax category, offering better affordability compared to high-tax states.
On the other hand, states like Karnataka, Telangana and Maharashtra are known for higher road tax rates, which can increase the on-road price by a large margin. This is why many buyers compare state-wise tax rates before purchasing a new vehicle.
Checking road tax differences before buying a car in 2026 can help you save a good amount of money on the final price.
