EV vs Petrol Car Road Tax Comparison 2026
One of the biggest advantages of buying an electric vehicle (EV) in India is the significant savings on road tax. Most states offer full or partial road tax exemption for EVs as part of their EV policies. This guide compares EV vs petrol car road tax across all Indian states so you can calculate exactly how much you save by going electric.
State-wise EV Road Tax Exemption Status (2026)
The table below shows the road tax exemption status for electric vehicles in each state. Exemptions vary from 100% full exemption to partial concessions, with a few states offering no benefit at all.
| State | EV Exemption Status | Petrol Car Road Tax (approx) | EV Road Tax | Savings on ₹15L Car |
|---|---|---|---|---|
| Delhi | Full Exemption | 7% (₹1,05,000) | ₹0 | ₹1,05,000 |
| Maharashtra | Full Exemption | 6% (₹90,000) | ₹0 | ₹90,000 |
| Tamil Nadu | Full Exemption | 9% (₹1,35,000) | ₹0 | ₹1,35,000 |
| Uttar Pradesh | Full Exemption | 7% (₹1,05,000) | ₹0 | ₹1,05,000 |
| Rajasthan | Full Exemption | 6% (₹90,000) | ₹0 | ₹90,000 |
| Gujarat | Full Exemption | 6% (₹90,000) | ₹0 | ₹90,000 |
| Punjab | Full Exemption | 6% (₹90,000) | ₹0 | ₹90,000 |
| Haryana | 75% Concession | 6% (₹90,000) | ₹22,500 | ₹67,500 |
| Karnataka | Partial (4% flat) | 9% (₹1,35,000) | ₹60,000 | ₹75,000 |
| Kerala | Full Exemption | 10% (₹1,50,000) | ₹0 | ₹1,50,000 |
| Telangana | Full Exemption | 7% (₹1,05,000) | ₹0 | ₹1,05,000 |
| West Bengal | Full Exemption | 6% (₹90,000) | ₹0 | ₹90,000 |
| Bihar | Full Exemption | 6% (₹90,000) | ₹0 | ₹90,000 |
| Odisha | Full Exemption | 6% (₹90,000) | ₹0 | ₹90,000 |
| Madhya Pradesh | No Exemption | 6% (₹90,000) | ₹90,000 | ₹0 |
| Andhra Pradesh | Full Exemption | 6% (₹90,000) | ₹0 | ₹90,000 |
| Assam | Full Exemption | 6% (₹90,000) | ₹0 | ₹90,000 |
| Chhattisgarh | Full Exemption | 6% (₹90,000) | ₹0 | ₹90,000 |
| Goa | Full Exemption | 6% (₹90,000) | ₹0 | ₹90,000 |
| Himachal Pradesh | Full Exemption | 6% (₹90,000) | ₹0 | ₹90,000 |
| Jharkhand | Full Exemption | 6% (₹90,000) | ₹0 | ₹90,000 |
| Uttarakhand | Full Exemption | 6% (₹90,000) | ₹0 | ₹90,000 |
Note: Petrol car road tax is approximate for a ₹15L ex-showroom car. Actual rates vary by engine capacity (CC) and exact price. Use the RTO Tax Calculator for precise figures.
Cost Comparison Calculator Narrative: ₹15L Car Example
Let's compare the total on-road cost for a ₹15L ex-showroom car — one in petrol and one electric — across different states. This example uses a typical mid-size SUV segment where both petrol and EV options are available (e.g., MG ZS EV vs MG Hector, Hyundai Kona vs Hyundai Creta, Tata Nexon EV vs Tata Nexon Petrol).
Scenario: ₹15,00,000 Ex-Showroom Car
| City (State) | Petrol Road Tax | EV Road Tax | Petrol On-Road | EV On-Road | Savings with EV |
|---|---|---|---|---|---|
| Delhi | ₹1,05,000 | ₹0 | ₹17,25,000 | ₹16,20,000 | ₹1,05,000 |
| Mumbai | ₹90,000 | ₹0 | ₹17,10,000 | ₹16,20,000 | ₹90,000 |
| Chennai | ₹1,35,000 | ₹0 | ₹17,55,000 | ₹16,20,000 | ₹1,35,000 |
| Bangalore | ₹1,35,000 | ₹60,000 | ₹17,55,000 | ₹16,80,000 | ₹75,000 |
| Lucknow (UP) | ₹1,05,000 | ₹0 | ₹17,25,000 | ₹16,20,000 | ₹1,05,000 |
| Ahmedabad | ₹90,000 | ₹0 | ₹17,10,000 | ₹16,20,000 | ₹90,000 |
| Bhopal (MP) | ₹90,000 | ₹90,000 | ₹17,10,000 | ₹17,10,000 | ₹0 |
| Thiruvananthapuram | ₹1,50,000 | ₹0 | ₹17,70,000 | ₹16,20,000 | ₹1,50,000 |
💡 The on-road price shown above includes ex-showroom price + road tax + registration (₹5K-₹15K approx) + HSRP. Actual on-road price may vary by dealer and specific model. Use the RTO Tax Calculator for exact figures for your car and state.
Top States for EV Buyers (Full Exemption)
These states offer 100% road tax exemption on electric vehicles, making them the most affordable places to own an EV:
🚗 Delhi – Full EV Exemption
Delhi has one of the most aggressive EV policies in India. Road tax is fully exempted for all EVs, and registration fees are also waived. The Delhi EV Policy also offers purchase incentives of up to ₹10,000 for e-scooters and ₹30,000 for e-rickshaws. For cars, the road tax saving of 7% makes EVs significantly cheaper than petrol alternatives on-road.
🚗 Maharashtra – Full EV Exemption
Maharashtra waives 100% road tax on EVs (earlier it was partial). The state's EV policy 2021 targeted 10% of new vehicle registrations to be EVs by 2025. Mumbai, Pune, and Nagpur have seen rapid EV adoption. With road tax at 6% (plus 1% metro cess in Mumbai), the saving on a ₹15L car is ₹90,000 in most cities and ₹1,05,000 in Mumbai.
🚗 Tamil Nadu – Full EV Exemption
Tamil Nadu offers full road tax exemption for EVs, and with the highest regular road tax rate of 9% (including 4% registration fee), the savings are substantial. For a ₹15L car, you save ₹1,35,000. The state has also attracted major EV manufacturing investments, including Foxconn and Ola Electric, and has its own EV policy to promote adoption.
🚗 Kerala – Full EV Exemption
Kerala offers the highest absolute savings on EV road tax due to its high base road tax rate of 10%. On a ₹15L car, EV buyers save ₹1,50,000 in road tax alone. Combined with Kerala's dense charging infrastructure in Kochi, Trivandrum, and other cities (Kerala has one of the best EV charging networks in India), this makes EVs very attractive.
🚗 Uttar Pradesh – Full EV Exemption
UP offers 100% road tax exemption for EVs under its UP EV Policy 2022. The state also provides additional incentives for EV manufacturing. With road tax at 7%, a ₹15L car saves ₹1,05,000. Noida, Greater Noida, Lucknow, and Agra have emerging EV charging networks making it practical for city driving.
🚗 Gujarat – Full EV Exemption
Gujarat offers 100% road tax exemption for EVs. At 6% road tax, a ₹15L car saves ₹90,000. Gujarat also offers purchase incentives and has a robust charging infrastructure in Ahmedabad, Surat, Vadodara, and Gandhinagar. The state is a major EV manufacturing hub with the Suzuki-Toyota EV plant in Gujarat.
States with Only Partial EV Exemption
Some states offer concessions but not full exemption. Here is what you need to know:
Gujarat – 1% (effectively full)
While Gujarat technically charges 1% road tax for EVs (reduced from ~6% for petrol), this is effectively a 90% concession. On a ₹15L car, you pay ₹15,000 vs ₹90,000 for petrol. Also note earlier policy versions may have different rates — always check the latest.
Haryana – 75% Concession
Haryana offers 75% concession on road tax for EVs. On a ₹15L car, the road tax drops from ₹90,000 to ₹22,500. This is still a substantial saving of ₹67,500. Haryana also offers a registration fee waiver for EVs, making it one of the better partial-exemption states.
Karnataka – 4% Flat for EVs
Karnataka charges a flat 4% road tax for EVs (vs 9% for petrol cars). On a ₹15L car, you pay ₹60,000 instead of ₹1,35,000 — saving ₹75,000. While not fully exempt, Karnataka's EV policy was one of India's first and the state has excellent charging infrastructure in Bangalore, Mysore, and along highways. Note that earlier the rate was 2.5% for EVs; it has been revised to 4%.
States with No EV Exemption
Most states have some form of EV incentive, but a few still do not offer any road tax concessions:
Madhya Pradesh – No EV Road Tax Exemption
Madhya Pradesh currently does not offer any road tax exemption for electric vehicles. EV buyers in MP pay the same road tax as petrol vehicles — approximately 6% of the ex-showroom price. However, this could change in future state budgets as more states adopt EV-friendly policies. Without the road tax incentive, the higher upfront cost of EVs in MP is harder to justify, making total cost of ownership calculations less favourable compared to petrol cars.
Beyond Road Tax: Other EV Benefits You Should Know
Road tax is just one part of the EV cost advantage. Here are additional savings and benefits of going electric:
🆓 Registration Fee Waiver
Many states waive the vehicle registration fee for EVs in addition to road tax. Typical registration fees range from ₹5,000 to ₹15,000 depending on the state and vehicle value. Delhi, Maharashtra, UP, and Kerala all waive registration fees for EVs. This can save you an additional ₹5,000-₹15,000 on your purchase.
💰 FAME II / EMPS Subsidy
The Government of India's FAME II scheme (and its successor EMPS — Electric Mobility Promotion Scheme 2024) provides upfront purchase subsidies for EVs. For cars, the subsidy is approximately ₹10,000-₹15,000 per kWh of battery capacity, subject to a maximum. For a 30kWh battery EV like the Tata Nexon EV, the subsidy can be ₹1.5L+ off the ex-showroom price.
🧾 Income Tax Deduction (Sec 80EEB)
Under Section 80EEB, you can claim an income tax deduction of up to ₹1.5L on the interest paid on an EV loan. This is available only in the old tax regime. If you take a ₹10L loan at 9% for 5 years, the first-year interest is around ₹80,000, which is fully deductible. This deduction is available for EV loans sanctioned before March 31, 2027.
🔌 Green Number Plate Benefits
EVs with green number plates get additional perks in many states: free parking in select malls and government lots (Delhi), toll fee concessions on some national highways, exemption from odd-even and other road rationing schemes, lower or waived green tax, and eligibility for HOV (high occupancy vehicle) lanes in some cities. These benefits add to the overall value proposition.
Frequently Asked Questions
1. Is EV road tax exemption available in all states?
No. Most states offer full exemption, some offer partial concession (Haryana 75%, Karnataka 4% flat, Gujarat 1%), and a few like Madhya Pradesh currently offer no exemption. The situation is dynamic, with states reviewing their EV policies regularly. Always check the latest rates for your state.
2. How much can I save on road tax by buying an EV?
For a ₹15L car, savings range from ₹0 (in MP) to ₹1,50,000 (in Kerala). In most states with full exemption, you save ₹90,000-₹1,05,000 on road tax alone. Add registration fee waiver (₹5K-₹15K) and FAME subsidy (₹1L-₹1.5L), and total upfront savings can be ₹2L-₹2.6L.
3. Is road tax calculated differently for EVs vs petrol cars?
Yes. For petrol cars, road tax is usually based on ex-showroom price and engine capacity (CC). For EVs, road tax is typically a flat percentage or a reduced percentage of the ex-showroom price (or fully exempt). There is no CC-based calculation for EVs since they don't have engine displacement.
4. Does road tax exemption apply to used EVs too?
In most states, road tax exemption applies only to the first registration of a new EV. When you transfer ownership of a used EV, the new owner typically has to pay a nominal transfer fee but not the full road tax. However, some states may charge a pro-rated road tax on transfer, so check your state's rules.
5. Will EV road tax exemption continue in the future?
Most state EV policies have a defined time horizon (e.g., 2025-2027). As EV adoption increases, states may phase out or reduce exemptions gradually. For example, Maharashtra reduced its EV concession from 100% to partial and then back to 100%. It's advisable to factor this uncertainty into your long-term ownership calculations, but for immediate purchases, the benefits are secure under current policies.
6. How do I calculate exact on-road price including road tax?
Use the DesiCalc RTO Tax Calculator for precise on-road price including road tax, registration fee, and HSRP for your specific state, vehicle type, and price. The calculator supports all states and vehicle categories including EVs, petrol cars, two-wheelers, and commercial vehicles.