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Cheapest States in India to Buy a Car

For better understanding, we have taken the reference of Hyundai Creta

Pondicherry (Puducherry)

The Union Territory of Pondicherry is one of the cheapest places in India to own a car. The road tax structure of the state is elaborate.


The road tax structure of the Union Territory of Chandigarh is quite simple, with relaxations for public welfare workers (registered with Social Welfare Department).

Himachal Pradesh

Road tax in Himachal Pradesh is among the lowest in India, making it the cheapest state to own a car. The state levies taxes on a car based on its engine size. 


Road taxes in Assam are not as high as other states in India, and the tax structure is simple and well-defined. The road taxes in Assam ranges between 5% to 12%, based on the ex-showroom price of the car. 


With a 6% road tax on all privately registered vehicles, Gujarat makes it to the list of the cheapest states in India to own a car.

Jammu & Kashmir

The Union Territory (former state) of Jammu & Kashmir has the simplest road tax structure in the entire country at the moment. J&K levies 9% road tax on all road users.


Punjab has an extremely simple road tax system. 8% tax is levied on all vehicles with an additional 1% cess for Social Security.


Road tax in Jharkhand is slightly more relaxed as compared to the tax in the neighbouring states. For vehicles costing up to 15 lakh, the road tax is 6%. For vehicles costing more than 15 lakh, 9% road tax is levied. 


Haryana is yet another state that imposes a simple road tax based on the ex-showroom price of the car. Road taxes in Haryana range between 5% to 10%. 

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The road taxes in Uttarakhand are not extremely expensive when compared to the road taxes levied by other states. The road taxes in Uttarakhand range between 8% to 10% based on the ex-showroom price of the car in question.