Buying a new car or bike in India in September 2025 has become slightly more expensive due to revised road tax rates. Several states have updated their tax slabs this year, making it important for buyers to understand the state-wise changes before registering a vehicle. Road tax is a one-time payment levied at the time of purchase, and it varies depending on state laws, vehicle cost, engine capacity, and fuel type.
The road tax revised 2025 India update reflects the government’s push for higher revenue generation and stricter compliance while also encouraging adoption of electric vehicles through lower tax brackets.
Why Road Tax Matters
Road tax is essential for maintaining infrastructure such as highways, state roads, and urban traffic systems. The state-wise changes in 2025 directly affect:
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On-road vehicle prices – Road tax is included in the final cost paid by buyers.
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Registration charges – Varies across states, often 8–20% of vehicle cost.
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Vehicle ownership decisions – Higher tax may push buyers towards EVs or smaller vehicles with lower slabs.
Key Changes in 2025
Several states have revised their slabs in September 2025. Highlights include:
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Maharashtra – Increased road tax on petrol/diesel cars above ₹15 lakh to 18%. EVs continue to enjoy just 5% tax.
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Karnataka – Revised slab from 13–17% to 14–18% for conventional cars. CNG and EVs taxed lower at 8%.
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Delhi NCR – Petrol/diesel cars face a 15% slab, while EVs remain tax-free until 2026.
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Tamil Nadu – Introduced a uniform 12% slab across most categories, but hybrids get a 2% discount.
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Uttar Pradesh – Revised slabs by 1–2% for SUVs above ₹12 lakh.
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Kerala – Maintained one of the highest slabs at 20% for luxury cars, encouraging EV buyers with reduced 7% tax.
State-Wise Road Tax Slabs in 2025
Here’s an overview of the road tax revised 2025 India for popular states:
| State | Petrol/Diesel Cars | CNG/Hybrid Cars | Electric Cars |
|---|---|---|---|
| Delhi NCR | 15% | 12% | 0% (tax-free till 2026) |
| Maharashtra | 14–18% | 10–12% | 5% |
| Karnataka | 14–18% | 8–10% | 8% |
| Tamil Nadu | 12% (uniform) | 10% | 6% |
| Uttar Pradesh | 12–16% | 10–12% | 6% |
| Kerala | 15–20% | 12% | 7% |
| Gujarat | 10–14% | 9–11% | 5% |
This table highlights the state-wise changes, showing how EVs consistently attract lower road tax compared to petrol and diesel models.
Impact on Buyers
For buyers, the state-wise changes in 2025 mean that:
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Luxury car buyers pay more – High-end petrol and diesel SUVs now attract up to 20% road tax.
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EV buyers save big – In most states, EVs enjoy 0–7% tax, cutting lakhs from the on-road price.
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Middle-class buyers squeezed – Vehicles in the ₹10–15 lakh range see the biggest tax hike.
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Regional variations matter – The same car can cost ₹1–2 lakh more in Kerala than in Gujarat due to road tax differences.
Impact on Automakers
Automakers are adjusting strategies to cope with the road tax revised 2025 India changes:
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Maruti Suzuki and Tata Motors are pushing affordable EVs to attract tax-conscious buyers.
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Toyota and Hyundai highlight hybrid benefits in states offering reduced rates.
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Luxury brands like BMW and Mercedes are focusing on EV launches to offset high petrol/diesel taxes.
These changes are also influencing where automakers prioritize launches and promotions.
Government’s Objective
The pollution control and revenue balance is the main objective of these revised slabs:
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Discourage high-emission petrol and diesel cars with higher taxes.
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Encourage clean alternatives like EVs and hybrids with lower slabs.
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Increase revenue collection to fund highway and urban mobility projects.
Buyer Tips for September 2025
If you are planning to buy a new vehicle this year, keep these in mind:
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Check state-specific slabs before finalizing purchase.
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Consider EVs or hybrids to save lakhs in tax.
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Buy before Q4 2025 – Some states are likely to revise slabs further before BS7 norms implementation.
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Compare on-road costs – A car that looks affordable in one state may cost significantly more in another.
FAQs
What is the current road tax rate in Delhi NCR in 2025?
Delhi NCR levies 15% road tax on petrol/diesel cars, while EVs remain tax-free until 2026.
Which state has the highest road tax in 2025?
Kerala has the highest rate, charging up to 20% on luxury petrol/diesel cars.
Are EVs taxed under the new slabs?
In most states, EVs attract 0–7% tax, much lower than conventional cars.
How much is road tax in Maharashtra in 2025?
Maharashtra charges 14–18% on petrol/diesel cars above ₹15 lakh and just 5% for EVs.
Can road tax rates change again in 2025?
Yes, some states may update slabs again later in the year, especially when BS7 norms come into effect in December 2025.
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