Archive · 2 Jun 2025
Karnataka Introduces Lifetime Tax Structure for Motor Vehicles
The Karnataka government is changing how it taxes cars.
Instead of yearly taxes, they're introducing a one-time tax based on the vehicle's cost.
Cars under ₹10 lakh will have a 5% tax, those between ₹10-15 lakh will pay 9%, and cars over ₹15 lakh will pay 15%.
Electric vehicles over ₹25 lakh will now have a 10% tax, which was previously exempt.
Construction equipment vehicles will have taxes based on their age.
Motor cabs also have new lifetime tax rates.
If you deregister a motor cab, you can get a refund based on the vehicle's age.
The state is also working on an EV policy to boost clean mobility.
Karnataka introduces a one-time lifetime tax for motor vehicles.
Vehicles under ₹10 lakh will have a 5% tax.
Vehicles costing between ₹10 and ₹15 lakh will have to pay 9%, and above ₹15 lakh, a 15% tax.
Electric vehicles priced above ₹25 lakh will now have a 10% tax.
Motor cabs have different lifetime tax rates based on cost and refunds available upon deregistration.
- Who
- Karnataka government
- What
- Introduced a new one-time lifetime tax structure for motor vehicles
- When
- Announced in 2025
- Where
- Karnataka
- Why
- To revise the vehicle taxation structure.
- New Tax Type
- One-time lifetime tax
- Vehicles under ₹10 lakh Tax
- 5%
- Vehicles ₹10-15 lakh Tax
- 9%
- Vehicles over ₹15 lakh Tax
- 15%
- Electric Vehicles > ₹25 lakh Tax
- 10%
- Construction Equipment Vehicles Tax
- 8-25% (depending on age)