EV subsidies and road tax in Karnataka
Reviewed by the EVz Editorial Team · as of April 2026 · how we verify
Karnataka is the notable 2026 reversal: electric two-wheelers stay road-tax exempt, but electric cars now pay a 5-10% lifetime tax by price band under a separate 2026 taxation amendment, even as the state's Clean Mobility Policy courts EV manufacturing. No cash purchase subsidy for retail buyers.
| Policy | Karnataka Clean Mobility Policy 2025-30 Partially lapsed - check carefully |
|---|---|
| Road tax (car) | ₹1,20,000 on a ₹15,00,000 car |
| Registration | waived for EVs |
| Expiry / window | New car road-tax slabs ongoing (Act gazetted 10 Apr 2026) |
| Data confidence | High |
What you get, by vehicle type
Electric scooter / bike
Up to ₹5,000 cash back on a ₹1,20,000 example (incl. ₹5,000 central PM E-DRIVE) and registration.
No state purchase subsidy for retail buyers.
Electric 3-wheeler
No direct cash subsidy and registration.
No state purchase subsidy for retail buyers.
Electric car
No direct cash subsidy and registration.
No state purchase subsidy; electric cars now pay a lifetime road tax (see above).
The central benefits (same everywhere)
On top of any state benefit, every EV buyer in Karnataka gets the central layer: the 5% GST rate on EVs (versus up to 40% on petrol/diesel), and, for electric two- and three-wheelers, the PM E-DRIVE discount (up to ₹5,000 on an e-2W). Private electric cars get no central cash subsidy. See the all-India comparison for how Karnataka stacks up.
FAQ
Is there an EV subsidy in Karnataka in 2026?
Karnataka is the notable 2026 reversal: electric two-wheelers stay road-tax exempt, but electric cars now pay a 5-10% lifetime tax by price band under a separate 2026 taxation amendment, even as the state's Clean Mobility Policy courts EV manufacturing. No cash purchase subsidy for retail buyers. (As of April 2026. Partially lapsed - check carefully.)
Does Karnataka waive road tax on electric vehicles?
Not fully. Electric two-wheelers exempt. Electric cars pay a one-time lifetime tax under Karnataka Act 29 of 2026 (gazetted 10 Apr 2026): 5% of vehicle cost up to ₹10 lakh, 8% for ₹10-25 lakh, 10% above ₹25 lakh.
Road tax on EV in Karnataka: how much do you pay?
Karnataka does levy road tax on electric cars: about ₹1,20,000 on a ₹15,00,000 example. Electric two-wheelers exempt. Electric cars pay a one-time lifetime tax under Karnataka Act 29 of 2026 (gazetted 10 Apr 2026): 5% of vehicle cost up to ₹10 lakh, 8% for ₹10-25 lakh, 10% above ₹25 lakh.
What is the electric car subsidy in Karnataka?
Karnataka gives no direct cash subsidy on private electric cars. No state purchase subsidy; electric cars now pay a lifetime road tax (see above). The main car benefit is the 5% GST rate.
How much is the electric scooter subsidy in Karnataka?
No state purchase subsidy for retail buyers. On top, the central PM E-DRIVE scheme adds up to ₹5,000 on an eligible electric two-wheeler.
Figures are estimates sourced to the state policy and central schemes, as of April 2026. Cash subsidies are first-come, capped, and can lapse when funds run out. Confirm the live scheme before you buy. Source: official / policy reference, secondary.
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