Karnataka Road Tax

In India, road tax is a type of taxation implemented or imposed on citizens of the state that needs to be paid whenever a person buys a new vehicle or gets their vehicle registered at an RTO (Regional Transport Office). It is a legally mandated tax that must be paid by commercial and private vehicles as per the rules of Section 39 of the Motor Vehicle Act, 1988.

This tax amount is determined based on the information provided by the vehicle owner on their vehicle details like vehicle type, engine capacity, age, vehicle purpose – for commercial or private use, and other essential information.

So when you buy a new vehicle, the road tax is included in the vehicle’s on-road price and is collected as a one-time payment on each new vehicle purchase and registration for non-commercial vehicles. For commercial vehicles, it can be done as a monthly, yearly or half-yearly payment.

This tax is used to fund the respective state’s road network maintenance and all its correlating expenses. For example, it can be used to build new roads, highways, bridges, railway tracks, etc.

You will also need to re-register your vehicle and pay a road tax when you move to a different state. This is because each Indian state has different tax norms, and the exact road tax amounts differ across states.

Road tax is imposed on commercial and private vehicles. It encompasses two-wheelers, three-wheelers, four-wheelers, and other types of vehicles. Generally, the state and central governments are responsible for levying road tax amounts in Karnataka.

Central Government Road Tax: These are collected by the NHAI (National Highway Authority of India) under the central government. These taxes are paid through toll fees collected from four-wheeled or larger vehicles that drive through toll roads. This needs to be paid only when your drive by toll roads.

State Government Road Tax: This is the most common type of road tax that people often encounter. This is levied by RTOs whenever you get your vehicle registered or buy a new vehicle. For example, road tax in Karnataka is collected by RTOs when you register your vehicle.

The Karnataka state government determines the road tax amount for vehicles based on some key factors that must be provided by the vehicle owner during the registration process.
Factors that affect the RTO tax in Karnataka are:

• Seating capacity of the vehicle.
• Cubic capacity of the vehicle engine.
• Vehicle fuel type.
• Vehicle cost.
• Vehicle weight.
• Usage (private/commercial) and its purchase date.
• Age of the vehicle (considered when you are registering a used vehicle or in case of transfer of a vehicle to Karnataka from a different state).

These factors are used to ensure that the road tax is calculated fairly across all vehicle categories. The RTO charges in Karnataka can also be determined using a Karnataka road tax calculator available on the Parivahan portal.

Moreover, we have also provided comprehensive tables below for each vehicle category for new and old vehicles to help you find out your RTO tax in Karnataka.

In addition to the tax rates stated above for four-wheelers, Karnataka also has separate tax slab for vintage and classic cars that must be paid by the vehicle owner when paying their road tax in Karnataka.

Unlike most Indian States, Karnataka has a uniform tab slab rate for both commercial and non-commercial vehicles. Moreover, the road tax in Karnataka is known to be the highest in India.

In addition to paying the road tax in Karnataka, vehicle owners must also ensure that they have valid car insurance at the time of registration. Whether you opt for temporary registration (done by the dealer) or permanent registration, it is mandatory to submit proof of insurance at the RTO.

According to the Motor Vehicles Act, every vehicle on public roads must have at least third-party vehicle insurance, which provides coverage against third-party liabilities. However, many drivers prefer comprehensive car insurance for broader protection that includes their own damage, theft, and natural disasters. Before purchasing a policy, you can check your premium using a vehicle insurance calculator to estimate your costs accurately. Having a valid insurance policy from TATA AIG keeps you compliant and protects you against unexpected expenses and liabilities in Karnataka.