Road Tax in Karnataka

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When you decide to purchase a car or a bike in any state, there are two prices that you are presented with. The first is the ex-showroom price and the second the on-road price. The on-road prices in Karnataka (Capital City: Bangalore) are actually the price that the manufacturer determines plus the cost of registration, taxes due (central and state) and the cost of insurance for the vehicle. When it comes to taxes on vehicles registered in Karnataka, the amounts of taxes levied are determined by the Karnataka Motor Vehicles Taxation Act. The act was first introduced in 1957 and has since undergone a few amendments in both 2008, 2010 and 2014. It lays out the guidelines on which the tax is to be calculated for all the vehicles that are sold and/or registered in the state. This is the tax that is commonly referred to as the road tax but is actually the motor vehicles tax.

How is the Tax calculated in Karnataka?

The amount of tax charged can depend on a lot of factors that can range from the price of the vehicle to the age and even include the seating and engine capacity of the vehicle. Other than this, the factors that are considered can also be the purpose of the vehicle and the place that it was manufactured. For example, if the vehicle is manufactured in India then the cost of the vehicle will include the price announced by the manufacturer and any other central or state government cess and taxes applicable (excise duty,sales tax, entry tax, etc).

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Tax on 2 Wheelers:

The tax charged on 2 wheelers is dependent on the cost of the vehicle and the age. As per these guidelines the taxes collected can be:

Vehicle category	Life Time Tax Applicable
New vehicle that costs less than Rs. 50,000	10% of the cost of the vehicles
New vehicles that cost more than Rs. 50,000	12% of the cost of the vehicles
Vehicles that run on electricity	4% of the cost of the vehicles
Vehicles that are less than 5 years old	73% to 93% as per clause A
Vehicles that are 5 years to 10 years old	49% to 69% as per clause A
Vehicles that are 10 to 15 years old	45% to 25% as per clause A

Tax on 4 Wheelers:

The tax on 4 wheeler can depend on the use of the vehicle and its classification too. The vehicles we can consider for this segment can include cars and jeeps, vehicles commonly bought for personal use, that have a floor area of up to 5 sq mt.

Vehicle Category	Life time Tax applicable
New vehicle that costs less than Rs. 5 lakhs	13% of the cost of the vehicles
New vehicles that cost Rs. 5 lakhs to Rs. 10 lakhs	14% of the cost of the vehicles
New vehicles that cost Rs. 10 lakhs to Rs. 20 lakhs	17% of the cost of the vehicles
New vehicles that cost more than Rs. 20 lakhs	18% of the cost of the vehicles
Vehicles that run on electricity	4% of the cost of the vehicles
Vehicles that are less than 5 years old	75% to 93% as per clause A
Vehicles that are 5 years to 10 years old	49% to 69% as per clause A
Vehicles that are 10 to 15 years old	45% to 25% as per clause A

Apart from these taxes there are also taxes that are charged on classic and vintage cars registered in Karnataka. The tax is a lifetime tax and needs to be paid only once.

It is:

Classic cars: Rs. 1,000
Vintage cars: Rs. 500

Tax on Imported Vehicles:

In the case of imported vehicles, the cost of the vehicle to be considered for this tax will be inclusive of things like the cost of the vehicle, the customs duty applicable and any other cost incurred in bringing the vehicle to the state for sale.

Tax on Vehicles registered in Other States:

As per the current rules, if someone is operating a vehicle in Karnataka, which has been registered in another state, lifetime tax need not be paid unless the vehicle is used in the state for more than 1 year.

How to pay Road Tax in Karnataka:

The road tax can be paid at the time of registering the vehicle by visiting any of the Regional Transport Offices present in various cities in the state. There you will have to provide the registration documents of the vehicle, along with other supporting document which can include the invoice for the sale of your vehicle. You will also have to fill out a form which will be used to determine the tax that is due.