Car Registration Fees & Road Tax Slabs in India (2026): State-Wise Charges Explained

Introduction

Car registration fees and road tax in India are not uniform. In 2026, every State and Union Territory follows its own tax slabs, calculation logic, and additional RTO charges when registering a new car.

What many buyers overlook is that not only do road tax rates differ, but even the basis of calculation changes across states. This directly impacts the final on-road price of a vehicle.

This guide explains how car registration fees and road tax are calculated in 2026, what charges you pay at the RTO, and how BH Bharat Series registration compares with state-wise registration.

How Road Tax Is Calculated in India (2026)

In most Indian states, road tax is calculated on the ex-showroom price of the car, not on the discounted price offered by dealers.

• Fuel type (Petrol, Diesel, Electric)
• Ex-showroom price of the car
• Engine cubic capacity (in some states)
• Number of cars owned (second car attracts higher tax in some states)

Important exception: Chandigarh, Jharkhand, and Gujarat calculate road tax on the vehicle price before GST.

Discounts or dealer offers do not reduce road tax liability.

Official rules are defined by MoRTH and implemented via Parivahan Sewa.

Charges Paid While Registering a New Car

Registration Charges

₹600 (fixed nationwide).

Hypothecation Charges

• ₹1,500 if vehicle is financed
• No charge for cash purchases

Incorrect hypothecation entries should be corrected via hypothecation removal services .

High Security Number Plate (HSRP)

₹230 – ₹400 depending on state.

State Development / Parking Fees

Example: Delhi MCD Parking Fees

• Below ₹4 lakh ex-showroom → ₹2,000
• Above ₹4 lakh ex-showroom → ₹4,000

Temporary Registration

₹1,500 – ₹2,500 (valid for ~1 month).

Fastag

₹500 – ₹600 including security deposit.

Why Road Tax Varies by State & Union Territory

States use road tax to fund local infrastructure, highways, and transport projects.

This is why identical cars can have different on-road prices across states.

For ownership changes across states, ensure proper ownership transfer .

BH Bharat Series Registration & Road Tax

BH Bharat Series allows road tax payment in blocks instead of lifetime upfront tax.

• Petrol cars: 8% – 12%
• Diesel cars: 10% – 14%
• Electric cars: 6% – 10%

Ideal for transferable jobs and inter-state movement. Learn more: What Is BH Series Number Plate?

Frequently Asked Questions (FAQs)

• Is road tax refundable? Usually no.
• Do discounts affect road tax? No.
• Is BH Series cheaper? It reduces upfront cost, not always total cost.
• Who sets road tax slabs? State governments.

Conclusion

Car registration fees and road tax in India in 2026 depend on state rules, vehicle category, and ownership pattern. Understanding these costs helps avoid surprises during registration.

For expert RTO assistance, visit our RTO services or contact our team.