Calculate EMI with new 2025 tax regime
✓ Small cars (≤1200cc petrol, ≤1500cc diesel): GST reduced from 28% to 18%
✓ Large cars & SUVs: GST simplified to flat 40% (no cess)
✓ Electric vehicles: GST remains at 5%
You're saving ₹30,000 in GST compared to the old tax regime!
Old GST: ₹4.30 L
New GST: ₹4.00 L
This car loan EMI calculator helps you calculate monthly EMI with new 2025 tax regime GST rates. Features on-road price calculation, state-wise RTO charges, bank-wise interest comparison, and comparison between new and used car loans.
The New 2025 Car Tax Regime (effective September 22, 2025) has significantly reduced GST on small cars from 28% to 18%, making affordable cars cheaper by up to ₹60,000-₹1 lakh depending on the car price.
Our calculator uses the latest 2025 GST rates and state-wise RTO charges to give you accurate on-road price calculations. Select your state to see exact registration costs and total on-road price.
| Car Category | Old GST Rate | New GST Rate (2025) | Savings |
|---|---|---|---|
| Small Petrol (≤1200cc) | 28% | 18% | Save 10% |
| Small Diesel (≤1500cc) | 28% | 18% | Save 10% |
| Mid-size & Sedans | 28% + 15% Cess = 43% | 40% (Flat) | Save 3% |
| SUVs & Large Cars | 28% + 22% Cess = 50% | 40% (Flat) | Save 10% |
| Electric Vehicles | 5% | 5% | No change |
Example Savings: On a small car priced at ₹6 lakh (ex-showroom), old regime GST was ₹1.68 lakh (28%). With new regime, GST is ₹1.08 lakh (18%). You save ₹60,000 in GST alone!
| State | Road Tax Rate | Notes |
|---|---|---|
| Himachal Pradesh | 2.5-3% | Lowest in India |
| Haryana | 5% | Very affordable |
| Gujarat | 6% | + 12% commercial |
| Delhi | 10% | + MCD parking charges |
| Telangana | 12% | Standard rate |
| Maharashtra | 11-13% | Varies by fuel type |
| Karnataka | 13-18% | Highest in India |
| Tamil Nadu | 10% | Standard rate |
| Bank/NBFC | New Car Rate | Used Car Rate | Max Tenure |
|---|---|---|---|
| HDFC Bank | 8.50% - 10.50% | 9.50% - 13% | 7 years |
| ICICI Bank | 8.75% - 11% | 10% - 13.5% | 7 years |
| SBI | 8.70% - 10.20% | 9.70% - 12.50% | 7 years |
| Kotak Mahindra Bank | 8.50% - 10.75% | 9.50% - 13% | 7 years |
| Bajaj Finance | 9.50% - 12% | 11% - 14% | 5 years |
Car loan EMI is calculated using: EMI = [P × R × (1+R)^N] / [(1+R)^N-1]. P is loan amount (on-road price minus down payment including new 2025 GST rates), R is monthly interest rate, N is tenure in months. For a ₹10 lakh loan at 9% for 5 years, EMI is approximately ₹20,758/month.
From September 22, 2025: Small cars (≤1200cc petrol, ≤1500cc diesel) got GST reduced from 28% to 18%, saving buyers significant money. Large cars and SUVs now have a simplified flat 40% GST with no additional cess. Electric vehicles continue at 5% GST.
On-road price = Ex-showroom price + GST (18%/40%/5% based on category) + RTO registration (state-wise: 5-14%) + Insurance (3-4%) + Registration fee (₹600) + Number plate (₹400) + Hypothecation (₹1,500 if loan) + Other charges. Total is typically 15-20% higher than ex-showroom price.
Himachal Pradesh has the lowest road tax (2.5-3%), making it the cheapest state for car registration. Arunachal Pradesh, Assam, and Haryana also have low RTO charges (4-5%). Karnataka has the highest at 13-18%, while Maharashtra charges 11-13% depending on fuel type.
Banks require 10-20% down payment for new cars and 20-30% for used cars. Higher down payment (30-40%) reduces EMI and total interest. Some lenders offer zero down payment with 12-14% interest. Better credit score (750+) may get lower down payment requirement.
For a small car (₹6 lakh ex-showroom): Old regime 28% GST = ₹1.68L, New regime 18% GST = ₹1.08L. You save ₹60,000 on GST alone! For large SUVs, the flat 40% rate simplifies calculations and removes cess complications, making pricing more transparent.