Electric vehicles (EVs) in Karnataka are set to become more expensive as the state government moves to end the 100% road tax exemption for battery-operated cars, jeeps, buses, and private service vehicles.
The Karnataka Motor Vehicles Taxation (Amendment) Bill, 2026, passed by the state legislature, links lifetime road tax at registration to the cost of the vehicle:
Up to ₹10 lakh – 5%
₹10 lakh to ₹25 lakh – 8%
Above ₹25 lakh – 10%
Electric two-wheelers will continue to be exempt.
Karnataka had exempted all EVs from road tax in March 2016 to promote adoption, and only vehicles priced above ₹25 lakh were taxed since 2024. Transport Secretary NV Prasad said the new bill will take effect once it receives the Governor’s assent.
Officials noted that while EV taxes will remain lower than those for internal combustion engine vehicles, the policy change reflects the growing number of EVs on the road and the government’s decision that exemptions cannot continue indefinitely.
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