Buying a new vehicle in Maharashtra has become more expensive following recent changes to the Maharashtra Motor Vehicle Tax Act, 1958. The revised tax structure, introduced through the Maharashtra Motor Vehicle Tax (Amendment) Act, 2025, has come into effect across the state from July 1, 2025.This amendment is expected to significantly impact new vehicle buyers, especially those purchasing luxury and commercial vehicles.
According to an official, changes are particularly notable for high-end cars, CNG vehicles, and goods carriers, as the one-time tax rates for these categories have been substantially increased. Additionally, the amendment raises the price bracket cap used for tax calculations from Rs 20 lakh to Rs 30 lakh. As a result, vehicles priced above Rs 20 lakh will now face higher tax rates, leading to a sharp rise in overall costs for such vehicles. However, electric vehicles (EVs) continue to enjoy tax exemptions.
Under the updated structure, petrol cars registered in an individual’s name will now attract one-time taxes of 11% for vehicles priced below Rs 10 lakh, 12% for those between Rs 10 lakh and Rs20 lakh, and 13% for vehicles costing above Rs 20 lakh. Diesel cars, meanwhile, will see tax rates of 13%, 14%, and 15%, respectively, across the same price brackets.
Significantly, the one-time tax cap has increased from Rs 20 lakh to Rs 30 lakh. This means luxury vehicles will become costlier by at least Rs 10 lakh. For example, high-end diesel and petrol cars priced around Rs 1.30 crore and Rs 1.50 crore, respectively, will now incur a one-time tax of approximately Rs 20 lakh.
"Vehicles imported or registered under company names will face a flat one-time tax of 20%, irrespective of price, for both petrol and diesel vehicles" said an official adding that CNG and LPG cars and bikes will also experience a modest increase, with a 1% hike in tax across all price brackets.
An 8% tax will now be levied on CNG and LPG cars and bikes priced up to Rs 10 lakh, 9% on those priced up to Rs 20 lakh, and 10% on CNG and LPG vehicles ( car and bikes ) costing more than Rs 20 lakh.
Goods carriers, including pickup trucks and tempos with a gross vehicle weight of up to 7,500 kg, along with construction vehicles like cranes, compressors, and projectors, will now be taxed based on their price instead of weight. The tax rate for these vehicles has been raised from 7% to 10%. For example, a pickup truck costing Rs 10 lakh, which earlier attracted Rs 20,000 tax based on weight, will now incur a tax of approximately Rs 70,000 under the new structure.
The Transport Commissioner of Maharashtra issued a notification on June 25, 2025, confirming the implementation of the amended Act from July 1, except for Section 5(2), which remains excluded for now.
Key Changes in the Motor Vehicle Tax Act
Vehicle price bracket cap increased from Rs20 lakh to Rs30 lakh for tax calculations.
One-time tax rates for petrol and diesel vehicles increased across all price brackets.
New category introduced for construction vehicles and light goods vehicles under 7,500 kg.
Goods carriers now taxed based on price instead of weight, with rates increased from 7% to 10%.
EVs remain exempt from tax despite previous proposals.
