Kerala road tax for new car: calculator, slabs and worked examples

Last updated: October 2026

The direct answer: for a new petrol, diesel or CNG car registered in Kerala you pay a one-time lifetime road tax at the time of registration, calculated as a percentage of the ex-showroom price. The slabs are 10% up to Rs.5 lakh, 13% from Rs.5 to Rs.10 lakh, 15% from Rs.10 to Rs.15 lakh, 17% from Rs.15 to Rs.20 lakh, and 22% above Rs.20 lakh. On top of that comes a Rs.200 one-time road safety cess for a car (light motor vehicle) and a Rs.600 registration fee. Electric cars have separate, lower slabs that were revised in the June 2026 state budget: 3% below Rs.10 lakh, 5% up to Rs.20 lakh, 10% from Rs.20 to Rs.40 lakh, and 15% above Rs.40 lakh. Worked examples and the full tables are below.

The petrol and diesel slab table (2026)

Kerala taxes private cars on their price, not their engine size. There is no separate slab for diesel; petrol, diesel and CNG cars all use the same table. The tax is charged once, at registration, and covers the vehicle's 15-year tax life. These are the slabs current 2026 sources report:

Ex-showroom priceRoad tax rate
Up to Rs.5,00,00010% of ex-showroom price
Rs.5,00,001 to Rs.10,00,00013% of ex-showroom price
Rs.10,00,001 to Rs.15,00,00015% of ex-showroom price
Rs.15,00,001 to Rs.20,00,00017% of ex-showroom price
Above Rs.20,00,00022% of ex-showroom price

An important honesty note on verification: the Kerala Motor Vehicles Department's own tax page returned a server error when I tried to open it during research, so I could not cross-check these slabs against mvd.kerala.gov.in directly. The table above is consistent across current 2026 sources (a state-by-state 2026 guide and recent owner-reported examples, such as 17% paid at around Rs.19.9 lakh and 22% above Rs.20 lakh). The final amount your dealer bills is the figure the Vahan registration software computes, so treat that as the last word and re-check it on parivahan.gov.in if a revision is announced.

Electric car slabs: revised in the June 2026 budget

Electric cars used to pay 5% to 10% depending on price. As part of the Kerala Budget 2026-27 announced in June 2026, the slabs were redrawn to make mass-market EVs cheaper and luxury EVs dearer:

Ex-showroom priceRoad tax rateWhat changed
Below Rs.10,00,0003%Reduced from 5%
Rs.10 lakh to Rs.15 lakh5%Unchanged
Rs.15 lakh to Rs.20 lakh5%Reduced from 8%
Rs.20 lakh to Rs.40 lakh10%Unchanged
Above Rs.40 lakh15%Raised from 10%

These revisions follow the pattern of the budget announcement as it was widely reported in June 2026. Note that budget announcements take effect only after the formal notification process, so if you are buying an EV around a budget cycle, confirm with your dealer which slab the registration software is actually applying that week.

Worked examples: do the calculation yourself

  1. Take the ex-showroom price. Use the dealer's ex-showroom figure for your variant, not the on-road price. Discounts you negotiate do not change the tax base; the slab applies to the listed ex-showroom price.
  2. Find your slab in the table above. If your price sits exactly on a boundary (for example, exactly Rs.5,00,000), the Vahan software decides which side you fall on; confirm with the dealer.
  3. Multiply. Road tax = ex-showroom price x slab percentage.
  4. Add the fixed charges: Rs.600 registration fee plus Rs.200 one-time road safety cess for a car. That is the state's side of the bill.
Example carEx-showroom priceSlabRoad taxPlus fee and cessTotal state charges
Budget hatchbackRs.4,80,00010%Rs.48,000Rs.800Rs.48,800
Compact SUVRs.7,90,00013%Rs.1,02,700Rs.800Rs.1,03,500
Mid-size sedanRs.13,00,00015%Rs.1,95,000Rs.800Rs.1,95,800
Premium SUV variantRs.19,50,00017%Rs.3,31,500Rs.800Rs.3,32,300
Luxury SUVRs.25,00,00022%Rs.5,50,000Rs.800Rs.5,50,800
EV below Rs.10 lakhRs.9,50,0003%Rs.28,500Rs.800Rs.29,300
EV Rs.10 to 20 lakhRs.12,00,0005%Rs.60,000Rs.800Rs.60,800

Watch the Rs.20 lakh cliff. Because the slab jumps from 17% to 22% at Rs.20 lakh, two variants of the same model can land very differently. A car at Rs.19,90,000 pays 17%, about Rs.3,38,300. A higher variant at Rs.20,50,000 pays 22%, about Rs.4,51,000. The variant costs Rs.60,000 more, but the tax difference is about Rs.1,13,000. If you are comparing variants that straddle a slab boundary, do this arithmetic before signing.

Other one-time charges on a new car

Road tax is the biggest line item, but not the only one. The figures below are the official schedule and commonly reported ranges:

ChargeAmount
Registration fee (car, central schedule)Rs.600
One-time road safety cess (light motor vehicle)Rs.200
Hypothecation endorsement, if you take a loanRs.1,500
High Security Registration Plate (HSRP)Commonly Rs.230 to Rs.400, fitted at a registered centre
FASTag with security depositCommonly Rs.500 to Rs.600

The Rs.200 road safety cess is levied under section 10 of the Kerala Road Safety Act, 2007, and was raised from Rs.100 to Rs.200 for light motor vehicles in the Kerala Budget 2023. If you want the HSRP booked before delivery, see our HSRP guide for Kerala.

What the tax covers, and what happens later

The lifetime tax covers the vehicle's 15-year registration life. A few consequences buyers often miss:

Old tables you may still see online

Several pages in search results still show an older slab set (9%, 11%, 13%, 16%, 21%). Those figures appear on pages last updated around 2025 and earlier, and do not match the current set. Kerala has revised its slabs upward over the years, and EV slabs changed again in the June 2026 budget. If a source does not say which year its figures are from, do not trust it for a purchase decision. The Vahan registration software applies the schedule in force on the registration date, which is why this page carries a "last updated" line.

FAQs

How is road tax calculated for a new car in Kerala?

Multiply the ex-showroom price by the slab percentage for your price bracket (10% to 22% for petrol, diesel and CNG cars; 3% to 15% for EVs), then add Rs.600 registration fee and Rs.200 road safety cess. Your dealer usually does this and includes it in the on-road price.

Does a showroom discount reduce the road tax?

No. The tax is calculated on the listed ex-showroom price before discounts, on a flat slab rate. Negotiating Rs.50,000 off does not move your car into a lower slab.

Is road tax the same for petrol and diesel cars in Kerala?

Yes. Unlike some states, Kerala does not penalise diesel cars with a separate slab; petrol, diesel and CNG cars all use the same price-based table.

Is the tax refundable if I move out of Kerala?

Partly. After re-registering the car in the new state, the original owner can claim a pro-rata refund of the unused portion of the Kerala tax from the original RTO. The claim is paperwork-heavy and takes months, so factor that in.

How long is the lifetime tax valid?

Fifteen years, matching the registration validity of a private vehicle. On renewal after 15 years, the tax rate is higher and a green tax applies.

My car is priced exactly at Rs.20 lakh. Which slab applies?

Boundary cases are decided by the registration software's exact comparison logic. Ask your dealer which slab the Vahan portal applies to your specific price, since crossing Rs.20 lakh means 22% instead of 17%.

Does the dealer handle all of this?

Normally, yes. The dealer collects the tax and fee, files the registration with the RTO that covers your address, and hands you the number and RC. The calculation above is still worth knowing, so you can check the dealer's figures against the official slabs.

Fees, slabs and rules change without notice. Verify all figures on parivahan.gov.in before paying. This guide reflects the Kerala road tax slabs as documented in October 2026.

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