Karnataka is India’s 6th largest state by area. It houses an extensive road network spanning 91959.80 km composed of major district roads and national and state highways. Most of its population relies on public transport or private vehicles to make their commute within the state.
This southern state also experiences yearly increases in its traffic density, with more people visiting or moving to the state. To keep up with logistical needs, the state must continuously maintain its road networks by sustaining existing roads and building new ones.
To fund this, the government imposes a road tax in Karnataka on all residents within the state who intend to use its roads. Therefore, anyone that owns a vehicle in Karnataka or plans to visit this state in their private vehicle must pay this tax. Once paid, they can drive freely within the state for up to 15 years.
Karnataka Motor Vehicles Taxation Act
The road taxes for two-wheelers and four-wheelers that are registered in Bangalore are determined by Karnataka Motor Vehicles Taxation Act. The act was implemented in 1957 and this has undergone several improvements.
Karnataka Vehicle Tax Calculation
Vehicle taxes in Karnataka are calculated depending on the vehicle’s age, cost, the original date of registration, seating capacity and engine capacity. In addition to this, the purpose of the vehicles and the place in which it was manufactured are considered while calculating the taxes.
Taxes Levied on Two Wheelers
As per the taxation guidelines, the tax charged on two-wheelers is dependent on the cost and age of the vehicle.
Vehicle Category | Applicable Tax |
New two-wheeler pricing below Rs. 50,000 | 10% of the cost of the vehicle |
New two-wheeler pricing between Rs. 50,000 and Rs. 1,00,000 | 12% of the cost of the vehicle |
| New two-wheeler pricing above than Rs. 1,00,000 | 18% of the total cost of the vehicle |
New two-wheeler that runs on electricity
| 4% of the cost total of the vehicle |
| Used two-wheelers that are not more than 2 years | 93% of the cost of the vehicle |
| Used Two Wheelers that are more than 3 years but not more than 4 years | 81% of the cost of the vehicle |
| Used Two Wheelers that are more than 4 years but not more than 5 years | 75% of the cost of the vehicle |
| Used Two Wheelers that are more than 5 years but not more than 6 years | 69% of the cost of the vehicle |
| Used Two Wheelers that are more than 6 years but not more than 7 years | 64% of the cost of the vehicle |
| Used Two Wheelers that are more than 7 years but not more than 8 years | 59% of the cost of the vehicle |
| Used Two Wheelers that are more than 8 years but not more than 9 years | 54% of the cost of the vehicle |
| Used Two Wheelers that are more than 9 years but not more than 10 years | 49% of the cost of the vehicle |
| Used Two Wheelers that are more than 10 years but not more than 11 years | 45% of the cost of the vehicle |
| Used Two Wheelers that are more than 11 years but not more than 12 years | 41% of the cost of the vehicle |
| Used Two Wheelers that are more than 12 years but not more than 13 years | 37% of the cost of the vehicle |
| Used Two Wheelers that are more than 13 years but not more than 14 years | 33% of the cost of the vehicle |
| Used Two Wheelers that are more than 14 years but not more than 15 years | 29% of the cost of the vehicle |
| Used Two Wheelers that are more than 15 years | 25% of the cost of the vehicle
|
Taxes Levied on Four Wheelers
As per the taxation guidelines, the taxes levied for four-wheelers depends on the use of the vehicle and its classification. The vehicles that come under this section include cars and jeeps that are bought for personal use having a floor area up to 5 square meters.
Vehicle Category
| Applicable Tax |
| A 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 below 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 up to 10 to 15 years old | 45% to 25% as per clause A |
Besides these taxes, there is a separate tax that is levied in the classic and vintage cars that are registered in Karnataka. This is a lifetime tax that has to be paid only once.
- For Classic cars, it is Rs. 1000
- For vintage cars, it is Rs. 500
Taxes on Imported Vehicles
Taxes for vehicles that are imported include the cost of the vehicle, the customs duty that area applicable and other costs charged for bringing the vehicle to the state for sale.
Taxes on Vehicles Registered in Other States
If a vehicle operating in Karnataka is registered in other State, then the vehicle owner need pay lifetime tax unless the vehicle is used in the state for more than a year.
FAQs
What is Karnataka Vehicle Tax?
Karnataka Vehicle Tax, also known as road tax, is a tax imposed by the Karnataka government on vehicles registered in the state. This tax is used to maintain and develop road infrastructure.
Who is required to pay vehicle tax in Karnataka?
All vehicle owners in Karnataka must pay vehicle tax. This includes both new and old vehicles, whether they are for personal or commercial use.