EV vs Petrol Car Road Tax Comparison 2026
Last updated: 2026-10-30
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 | 10% (₹1,50,000) | ₹0 | ₹1,50,000 |
| Maharashtra | Full Exemption | 12% + 2% cess (₹1,83,600) | ₹0 | ₹1,83,600 |
| Tamil Nadu | Full Exemption | 18% (₹2,70,000) | ₹0 | ₹2,70,000 |
| Uttar Pradesh | Full Exemption | 11% (₹1,65,000) | ₹0 | ₹1,65,000 |
| Rajasthan | Full Exemption | 9% + 12.5% (₹1,51,875)* | ₹0 | ₹1,51,875 |
| Gujarat | No confirmed concession | 6% pre-GST (₹76,271) | ₹85,714 (6%, 5% GST) | -₹9,443 |
| Punjab | Full Exemption | 9.5% + ₹1,000 cess (₹1,42,500) | ₹0 | ₹1,42,500 |
| Haryana | Full ≤₹30L; 50% above | 8% (₹1,20,000) | ₹0 | ₹1,20,000 |
| Karnataka | Partial | 17% + 11% + ₹1,000 (₹2,84,050) | ₹1,34,200 | ₹1,49,850 |
| Kerala | Partial | 15% (₹2,25,000) | ₹75,000 (5%) | ₹1,50,000 |
| Telangana | Full (cess applies) | 18% + ₹5,000 (₹2,75,000) | ₹5,000 cess | ₹2,70,000 |
| West Bengal | Full Exemption | 10% (₹1,50,000) | ₹0 | ₹1,50,000 |
| Bihar | Full Exemption | 10% (₹1,50,000) | ₹0 | ₹1,50,000 |
| Odisha | Full Exemption | 10% (₹1,50,000) | ₹0 | ₹1,50,000 |
| Madhya Pradesh | Standard rates | 10% (₹1,50,000) | ₹1,20,000 (8%) | ₹30,000 |
| Andhra Pradesh | Full Exemption | 14% + 10% cess (₹2,31,000) | ₹0 | ₹2,31,000 |
| Assam | Policy lapsed | 10% + 1% cess (₹1,66,500) | ₹1,66,500 | ₹0 |
| Chhattisgarh | 25% waiver | 6% (₹90,000) | ₹67,500 (4.5%) | ₹22,500 |
| Goa | Full Exemption | 12% (₹1,80,000) | ₹0 | ₹1,80,000 |
| Himachal Pradesh | Full Exemption | 6% (₹90,000) | ₹0 | ₹90,000 |
| Jharkhand | 25% rebate | 6% (₹90,000) | ₹67,500 | ₹22,500 |
| Uttarakhand | Full Exemption | 8% (₹1,20,000) | ₹0 | ₹1,20,000 |
| Meghalaya | Full Exemption | 6% (₹90,000) | ₹0 | ₹90,000 |
| Sikkim | Partial (1%) | 4% (₹60,000) | ₹15,000 | ₹45,000 |
| Manipur | Partial (4%) | 10% (₹1,50,000) | ₹60,000 | ₹90,000 |
| Tripura | 25% rebate | ₹1,20,000 (8%) | ₹90,000 | ₹30,000 |
| Nagaland | No exemption | 6% (₹90,000) | ₹90,000 | ₹0 |
| Mizoram | No exemption | 6% pre-GST (₹76,271) | ₹76,271 | ₹0 |
| Arunachal Pradesh | No exemption | 3.5% (₹52,500) | ₹52,500 | ₹0 |
Note: Petrol road tax is approximate for a ₹15L ex-showroom car. Actual rates vary by engine capacity, fuel and exact price. *Rajasthan uses a 1,000cc petrol car. 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 | Savings with EV |
|---|---|---|---|
| Delhi | ₹1,50,000 | ₹0 | ₹1,50,000 |
| Mumbai | ₹1,83,600 | ₹0 | ₹1,83,600 |
| Chennai | ₹2,70,000 | ₹0 | ₹2,70,000 |
| Bangalore | ₹2,84,050 | ₹1,34,200 | ₹1,49,850 |
| Lucknow (UP) | ₹1,65,000 | ₹0 | ₹1,65,000 |
| Ahmedabad | ₹76,271 | ₹12,712 | ₹63,559 |
| Bhopal (MP) | ₹1,50,000 | ₹60,000 | ₹90,000 |
| Thiruvananthapuram | ₹2,25,000 | ₹75,000 | ₹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
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 10% makes EVs 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 12% plus 2% cess, the saving on a ₹15L car is about ₹1,83,600.
🚗 Tamil Nadu – Full EV Exemption
Tamil Nadu offers full road tax exemption for EVs. The petrol road tax at ₹15L is 18%, so the saving is ₹2,70,000. Registration fees are separate. 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 charges 15% road tax at ₹15L for petrol cars and 5% for EVs. The saving is ₹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 — 1% concession expired
Gujarat's 1% EV concession ran only to 31 March 2026. No replacement is officially notified, so the calculator uses the standard 6% pre-GST rate. Confirm any new Green Mobility Policy at the RTO.
States with Only Partial EV Exemption
Some states offer concessions but not full exemption. Here is what you need to know:
Gujarat — no confirmed EV concession
The 1% EV rate expired on 31 March 2026. Standard 6% pre-GST applies unless a new notification is issued.
Haryana – Full up to ₹30L
Haryana offers 100% road tax exemption for EVs up to ₹30 lakh, and 50% above ₹30 lakh. On a ₹15L car, the road tax drops from ₹1,20,000 to zero.
Karnataka – 8% at ₹15L
Karnataka charges EVs 8% at ₹15L, plus 11% cess and ₹1,000, versus 17% for petrol. On a ₹15L car, EV road tax is about ₹1,34,200 versus ₹2,84,050, a saving of ₹1,49,850.
States with No EV Road Tax Concession
A few jurisdictions still do not offer a confirmed EV road tax concession:
Nagaland, Mizoram and Arunachal Pradesh
Current verified data shows no EV road tax concession in these jurisdictions. Madhya Pradesh and Assam also no longer have a confirmed EV concession: MP's waiver lapsed in March 2026 and Assam's policy lapsed in September 2026.
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.
💰 PM E-DRIVE Incentives
The central PM E-DRIVE scheme replaced FAME II and EMPS. It focuses on electric two-wheelers, three-wheelers, buses and charging infrastructure; private electric cars are not covered by a direct purchase subsidy. Check the latest PM E-DRIVE guidelines before assuming a central subsidy.
🧾 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 (Karnataka 8% at ₹15L, Kerala 5%, Manipur 4%, Chhattisgarh 4.5%), and some now offer no confirmed EV concession (Gujarat, MP, Assam, Nagaland, Mizoram, Arunachal). 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 (Nagaland, Mizoram, Arunachal, Assam) to ₹2,70,000 (Tamil Nadu and Telangana). Gujarat currently has no confirmed EV concession; Kerala saves ₹1,50,000 at ₹15L. Add any state registration-fee waiver where applicable. There is no direct central purchase subsidy for private electric cars under PM E-DRIVE.
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, often 2026-2030. As EV adoption increases, states may phase out or reduce exemptions. Check the current notification before purchase; this page reflects rates verified in October 2026.
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.