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Karnataka Govt Ends 100% Tax Exemption on EVs in State, Effective April 2026 [Read Notification]
The Government of Karnataka officially implemented the Karnataka Motor Vehicles Taxation (Amendment) Act, 2026, on April 10, 2026, which received the assent of the governor on April 9, 2026. The amendment abolishes the 100% road tax exemption for all electric vehicles (EVs) in the state. The decision will apply to all battery-operated vehicles (BOVs), including electric cars, jeeps, omnibuses, and personal service vehicles.
According to the new provision, a lifetime tax on electric vehicles, imposed at the time of registration, will now be based on their price.
- 5% tax on vehicles priced up to Rs 10 lakh
- 8% tax on vehicles priced between Rs 10 lakh and Rs 25 lakh.
- 10% tax on vehicles priced above Rs 25 lakh
However, electric two-wheelers will continue to enjoy full tax exemption.
To whom will the rule apply?
The government has clarified that these age-based tax slabs will be applicable only on vehicles being re-registered in Karnataka or with a no-objection certificate (NOC) from other states. There will be no impact on already registered electric vehicle owners.
If we talk about the old rule, Karnataka had completely waived the tax in March 2016 to promote electric vehicles. Later, some changes were made in it, and tax started being imposed on expensive vehicles only from Rs 25 lakh. But now, in 2026, the government has completely changed this policy.
The government is expected to earn an additional income of about Rs 250 crore from this decision. As soon as people became aware of this change, the purchase of electric vehicles increased in March 2026. People thought that it would be better to buy the car before the tax was imposed. However, there is some concern among companies and common people regarding this decision. Many people believe that the car will become expensive, which may slow down the pace of purchase of electric vehicles a bit.