What road tax you pay on an electric car in Karnataka now

If you are buying an electric car in Karnataka, add lifetime road tax to your on road budget. The state's blanket exemption for battery cars is over. Under the Karnataka Motor Vehicles Taxation (Amendment) Act, 2026, an electric car pays a one time lifetime tax of 5 per cent up to ₹10 lakh, 8 per cent from ₹10 lakh to ₹25 lakh and 10 per cent above ₹25 lakh. Electric two wheelers remain exempt.

The state had exempted EVs since 2016, with a 10 per cent levy added for cars above ₹25 lakh in March 2024. Autocar India reported the plan to extend tax to all electric cars, and The News Minute reported the government going ahead despite objections, including from Bengaluru South MP Tejasvi Surya, with Vahan being modified to collect the tax at registration. Electronics For You reported the amendment notified in April 2026, covering electric cars, jeeps, omni buses and private service vehicles, with the state expecting about ₹250 crore more a year.

What this adds to a real purchase

In rupees, EV India puts the extra cost at ₹35,000 to ₹50,000 on entry level cars such as the MG Comet and Tata Tiago EV, and ₹1.2 lakh to ₹1.6 lakh on cars in the 8 per cent bracket such as the Tata Nexon EV and Mahindra XUV400. That is money you pay once, at registration, on top of ex showroom price and insurance.

It is still cheaper than a petrol car. Karnataka's petrol and diesel slabs run from 13 per cent below ₹5 lakh to 18 per cent at ₹20 lakh and above, with a cess and infrastructure cess of 1.43 to 1.98 per cent of ex showroom price on top. So the EV advantage at the RTO has shrunk, not vanished.

Two points to get in writing from your dealer or RTO. First, which price the slab is read off, because the gap between ₹9.9 lakh and ₹10.1 lakh is three percentage points. Second, whether an EV already registered under the old exemption can be asked to pay. Reports differ. EV India says the tax applies to fresh registrations from April 2026, while Electronics For You describes an age based proportion of 93 per cent down to 25 per cent for already registered EVs. Do not take a dealer's word on this one.

One central concession survives. The Transport Department's own notification list carries MoRTH's G.S.R. 525(E) of 2 August 2021, which exempts battery operated vehicles from the fee for issue or renewal of a registration certificate and for a new registration mark. You still pay for the green high security plate.

What the centre pays for, and what it does not

PM E-DRIVE, the ₹11,900 crore scheme that replaced FAME 2, does not have an electric car category at all. Its money is split across e-2 wheelers, e-rickshaws and e-carts, e-3 wheelers, e-ambulances, e-trucks, e-buses, public charging stations and testing agencies. There is no demand incentive waiting for your e-car.

The scheme now runs to 31 March 2028 for all segments except e-3W (L5), which closed on 26 December 2025. For a Bengaluru buyer, the practical read is this. An electric scooter still gets a central incentive and pays no state lifetime tax. An electric car gets neither, and now pays 5 to 10 per cent at the RTO.

Before you book

Ask for an on road breakup in writing that shows lifetime tax as a separate line with the percentage used. Confirm the slab against the invoice price, not the brochure. Check whether the cess lines are being added to your EV. Keep the registration fee exemption in mind and question any RC fee on the quote. If you are moving an out of state EV into Karnataka, ask the RTO in writing what it will levy before you ship the car.

Sources

• Karnataka plans to reintroduce lifetime tax on EVs, Autocar India
• Karnataka govt to go ahead with EV tax despite strong opposition, The News Minute
• Karnataka Ends EV Road Tax Holiday, Introduces Lifetime Tax from 2026, Electronics For You
• Karnataka EV Road Tax 2026: New Lifetime Tax Slabs Explained, EV India
• Taxes and notifications, Transport Department, Government of Karnataka
• PM E-DRIVE scheme components and period, Ministry of Heavy Industries
• Karnataka road tax rates for petrol, diesel and electric cars, MyCarHelpline