2026 EV Road Tax Rate - 36 Brands, 85 Models

Despite the EV road tax holiday period being just a week from ending, clarity on post-incentive taxation has been in place since Transport Minister Anthony Loke announced the revised EV road tax structure in 2024.

When the exemption ends on Jan 1, 2026, EV owners will transition to a system that is cheaper than the pre-2022 EV road tax formula, rather than a return to the earlier punitive rates that once raised concerns about long-term EV affordability.

The revised framework is comprehensive, covering 36 EV brands, 85 models and 174 variants, ensuring the full breadth of Malaysia’s rapidly expanding EV market is accounted for well before incentives expire.

Before the road tax holiday was introduced, EV road tax was calculated almost entirely based on electric motor output. While the pre-2022 structure also relied on motor output — similar in principle to the 2026 framework — its rate bands were far steeper, creating fears that EV ownership would become prohibitively expensive once incentives ended.

A clear mass-market example is the BYD Atto 3 Extended Range, which uses a 150kW motor.

Under the old rate, it would have been charged RM903 per year in road tax. Under the revised 2026 structure, that figure drops sharply to RM160, making it not only far cheaper than the old EV rate, but also competitive with — and in some cases cheaper than — equivalent ICE SUVs that continue to be taxed based on engine capacity.

In the mid-range segment, the correction is even more striking.

The BMW i5 eDrive40, with a 259kW electric motor, would previously have faced a road tax charge of RM3,724 annually under the old EV road tax formula before incentives. Under the revised 2026 rates, its road tax falls to just RM395, placing it firmly within the range of comparable executive ICE sedans.

This effectively removes the disproportionate penalty once attached to higher-output EVs.

At the premium performance end, the impact of the revision becomes clearer in absolute terms.

The Lotus Eletre 900, one of the most powerful EV SUVs on sale, would previously have attracted a road tax figure of RM13,503 per year under the pre-2022 calculation. Under the new structure taking effect in 2026, its annual road tax drops dramatically to RM4,890.

This reflects a smoother and far more rational progression, rather than sharp jumps driven purely by motor output.

Crucially, taken as a whole, no EV listed under the 2026 schedule pays more than it would have under the old pre-2022 EV road tax formula.

As Malaysia approaches the end of its EV road tax holiday — alongside the removal of the CBU EV tax exemption from Jan 1, 2026 — the message is clear.

The post-2026 framework is not a rollback to outdated calculations, but a reset: one that normalises EV taxation, moves the market away from incentive-driven adoption, and supports a more sustainable transition as EVs become a permanent part of Malaysia’s automotive landscape.