Planning to buy a luxury car in Maharashtra? Get ready to pay up to ₹10 lakh more

High-end luxury cars, CNG/LPG vehicles, and light goods carriers in Maharashtra will become costlier from July 1, 2025, following the implementation of a revised one-time motor vehicle tax structure, officials said on Monday.

The government has increased the one-time motor vehicle tax by 1% across all categories of non-transport CNG or LPG-run vehicles.

The Maharashtra Motor Vehicle Tax (Amendment) Act, 2025, also increases the tax ceiling from ₹20 lakh to ₹30 lakh, impacting high-end vehicles.

The change is expected to generate an additional ₹170 crore in revenue for the state in 2025-26, reported The Times of India.

For example, a diesel car, registered under an individual’s name, with an ex-showroom price of ₹2 crore would attract a maximum of ₹20 lakh one-time tax, despite a calculated tax of ₹30 lakh at 15%.

With the new ₹30 lakh cap, the tax will now be ₹30 lakh, increasing the vehicle’s cost by ₹10 lakh.

Similarly, a ₹2 crore company-registered or imported car, taxed at a flat 20%, will see its tax rise from ₹20 lakh (capped) to ₹30 lakh, also adding ₹10 lakh to the cost.

Petrol cars registered under individual names are taxed at 11% for vehicles priced below ₹10 lakh, 12% for those between ₹10 lakh and ₹20 lakh, and 13% for those above ₹20 lakh, subject to the ₹30 lakh cap.

Diesel cars attract 13%, 14%, and 15% in the same price brackets, respectively.

Company-registered or imported vehicles face a flat 20% tax.

For a ₹2 crore petrol car (individual registration), the tax rises from ₹20 lakh to ₹26 lakh (13%), increasing the cost by ₹6 lakh.

Non-transport CNG and LPG vehicles will face a 1% tax hike across all price categories.

For example, a ₹10 lakh CNG vehicle will now incur a tax of ₹80,000 (8%), up from ₹70,000 (7%).

A ₹20 lakh CNG vehicle will see its tax increase from ₹1.4 lakh to ₹1.6 lakh.

Light goods vehicles (LGVs) with a gross vehicle weight up to 7,500 kg, such as pickup trucks, will now be taxed at 7% of their price, replacing the earlier weight-based system. Construction vehicles like cranes and compressors will also face a 7% one-time tax.

"Electric vehicles (EVs) will continue to enjoy tax exemptions. Although the state government had earlier proposed a 6% tax on EVs priced above ₹30 lakh, the proposal was later withdrawn," an official said.