Are EVs still free of road tax in Malaysia in 2026?

No. The EV road-tax exemption in Malaysia ended on 31 December 2025, and from 1 January 2026 EVs are taxed under a new structure based on motor power in kilowatts (kW). You pay the new rate at your first road-tax renewal in 2026. The 2026 rates are, however, designed to stay far lower than an equivalent petrol car, with the lowest figure being RM20 a year. Sources: paultan.org, Carlist.my, and Motorist Malaysia, as of 2026-06-02.

How is 2026 EV road tax calculated?

It is worked out by motor power in kilowatts (kW), with the total road tax equal to the band's base rate plus one increment for every 9.99 kW block. The four main bands are: Band 1 (0.001 to 100 kW) RM20 to RM70, Band 2 (100.1 to 210 kW) RM80 to RM280, Band 3 (210.1 to 310 kW) RM305 to RM575, and Band 4 (310.1 to 410 kW) RM615 to RM1,065. The nominal power is normally used, not the peak overboost figure. Sources: Carlist.my, Motorist Malaysia, and IGL Coatings, as of 2026-06-02.

Why do some EVs pay more road tax than others?

Because 2026 road tax is tied to motor power, not battery size or range. A higher-power EV falls into a higher band and pays more. For example, the BYD Dolphin Standard Range at around 70 kW pays RM40, while the Tesla Model Y Long Range AWD at around 378 kW pays RM915. So two EVs with similar batteries can pay very different road tax if their motor powers differ. Source: Motorist Malaysia, as of 2026-06-02.

Is an EV still cheaper than a petrol car now that road tax applies?

Yes. On average, the 2026 EV road-tax rates are about 85 percent lower than the equivalent ICE (petrol) rates. More importantly, road tax is only a small annual cost; an EV's real saving comes from charging costs that are far lower than petrol. A road tax of a few tens up to a few hundred ringgit a year is small next to the energy saving over a year. To work out the saving for your car, use the calculator on this site. Sources: Carlist.my, Motorist Malaysia, and IGL Coatings, as of 2026-06-02.

EV Road Tax 2026 in Malaysia: The Exemption Ended, Here Is What You Pay

For several years, owners of an electric vehicle (battery electric vehicle, or BEV) in Malaysia enjoyed a full road-tax exemption. That exemption is now over: it ended on 31 December 2025, and from 1 January 2026 EVs are taxed under a new structure based on motor power in kilowatts (kW), no longer on engine capacity in cc as petrol cars are. The good news is that the new structure is designed to stay far cheaper than an equivalent petrol car. This guide explains what you pay by your EV's power, why a higher-power EV pays more, real model examples, how it compares with a petrol car, and the CKD and CBU import-incentive context. Every figure on this page is dated and sourced; for the official figure for your own car, check with JPJ or the official road-tax lookup.

By mht-dev, Frontend Engineer & Creator

A frontend engineer who bought a first electric car in March 2026 and built EV Charge Calculator while working out the real cost of charging it, writing every guide from an everyday new EV owner's perspective.

What changed in 2026

During the incentive period, EVs in Malaysia were fully exempt from road tax. That exemption ended on 31 December 2025, so your first road-tax renewal in 2026 is charged at the new rates. The Ministry of Transport introduced a power-based structure, not a return to the old formula many considered punitive, but a more rational progressive model based on total motor power output in kilowatts (kW). Sources: paultan.org, Carlist.my, Motorist Malaysia, SoyaCincau, and Lowyat, as of 2026-06-02.

The key change is that EV road tax is now tied to motor power, not battery size or range. That is why an EV's spec matters here: two EVs with similar battery sizes can pay very different road tax if one has a far more powerful motor. A low-power city EV falls into the lowest band and pays very little, while a high-power performance EV pays more. We explain these bands in the next section.

The kW-based band structure

From 1 January 2026, EV road tax is worked out by motor-power band. The general formula is that the total road tax equals the band's base rate plus one increment for every 9.99 kW block within that band. The four main bands, with figures consistent across sources, are as follows. Band 1 (0.001 to 100 kW): base RM20, plus RM10 per 9.99 kW block, giving RM20 to RM70 a year. Band 2 (100.1 to 210 kW): base RM80, plus RM20 per block, giving RM80 to RM280. Band 3 (210.1 to 310 kW): base RM305, plus RM30 per block, giving RM305 to RM575. Band 4 (310.1 to 410 kW): base RM615, plus RM50 per block, giving RM615 to RM1,065. The lowest possible figure is RM20, and only extraordinary EVs above about 10,100 kW face a flat RM20,000 rate. Sources: Carlist.my, calculatormalaysia.com, Motorist Malaysia, and IGL Coatings, as of 2026-06-02.

Because the band is set by motor power, a higher-power EV pays more, and this means your car's spec determines the bill. The nominal motor power (not the peak overboost figure) is normally used to find the band, so check your car's official power rating. If your EV sits at the high end of one band, a small power difference can move it into the next band and raise its base, so the exact figure should be confirmed with JPJ or the official road-tax lookup rather than estimated.

Model examples and the petrol comparison

To make these bands concrete, here are some model examples and their 2026 road tax by motor power. The BYD Dolphin Standard Range at around 70 kW pays RM40 a year, in the lowest band. The BYD Atto 3 Extended Range at around 150 kW pays RM160. The Tesla Model 3 RWD at around 208 kW pays RM280. The BMW i5 eDrive40 at around 250 kW pays RM395. The more powerful Tesla Model Y Long Range AWD at around 378 kW pays RM915, reflecting its high-power dual-motor drive. Figures can vary by variant and the registered official power, so treat these as a guide and not a final quote. Source: Motorist Malaysia, as of 2026-06-02.

Even with road tax now charged, an EV still wins on cost against an equivalent petrol car. On average, the 2026 EV rates are about 85 percent lower than the equivalent ICE (petrol) road-tax rates. More importantly, road tax is only a small annual cost; an EV's real saving comes from charging costs that are far lower than petrol. A road tax of RM40 up to a few hundred ringgit a year is small next to the energy saving over a year. Sources: Carlist.my, Motorist Malaysia, and IGL Coatings, as of 2026-06-02. To see the charging-cost saving for your car, use the charging cost calculator on this site, which also shows the cost comparison against petrol.

Import-incentive context: CKD and CBU

Beyond road tax, another important 2026 policy change is the EV import incentive. The import-duty and excise-duty exemption for fully imported EVs (CBU, completely built-up) ended at the end of 2025. From 2026, CBU EVs face duties that are broadly 30 percent import duty plus 10 percent excise duty plus 10 percent sales tax; however, China-made EVs under the ASEAN-China free trade agreement face 5 percent import duty, making it 5 percent plus 10 percent plus 10 percent. By contrast, locally assembled EVs (CKD, completely knocked-down) remain exempt from import duty, excise duty, and sales tax until 31 December 2027. Sources: paultan.org, SoyaCincau, Lowyat, and The Edge Malaysia, as of 2026-06-02.

For buyers, the effect is that locally assembled EVs tend to keep lower prices for longer, while some fully imported models may become more expensive from 2026 than during the incentive period. This does not change your annual road tax, which is set by motor power as described above, but it does affect the purchase price. If you are comparing models, it is worth checking whether an EV is locally assembled (CKD) or fully imported (CBU), since that can affect its 2026 list price.

What this means for EV owners

In short, EV road tax in Malaysia is no longer free, but for most owners it stays small. Mainstream city and family EVs typically fall into Band 1 or Band 2 and pay between RM40 and a few hundred ringgit a year, still well below an equivalent petrol car. Only very high-power performance EVs reach Band 3 or Band 4. So when you buy an EV, its motor power, not just its battery size or range, affects your annual road-tax bill. For the official figure for your specific car, check with JPJ or the official road-tax lookup, since variants and registered power can differ.

Road tax is only a small part of the overall cost picture. The biggest saving an EV has over a petrol car comes from everyday energy costs. For a comparison of home versus public charging cost in Malaysia, see the "Home vs public charging cost" guide at /my/guide/kos-cas-di-rumah-vs-stesen-awam. To work out the charging cost and the saving against petrol for your own car, use the charging cost calculator on this site at /my.

Sources and further reading

paultan.org, the new EV road-tax structure in Malaysia from 1 January 2026 and the power-band formula (Band 1: base RM20, plus RM10 per 9.99 kW block; 100 kW gives RM70), plus the 2026 CBU duties (as of 2026-06-02): https://paultan.org. Carlist.my, the 2026 kW-based EV road-tax structure and the comparison of about 85 percent cheaper than ICE (as of 2026-06-02): https://www.carlist.my.

Motorist Malaysia, the 2026 EV road-tax structure with the full band table and model examples (BYD Dolphin RM40, BYD Atto 3 RM160, Tesla Model 3 RWD RM280, BMW i5 RM395, Tesla Model Y LR AWD RM915; as of 2026-06-02): https://www.motorist.my/article/5421/new-2026-ev-road-tax-structure. IGL Coatings, the 2026 EV road-tax guide with the base rate and increment per band (as of 2026-06-02): https://blog.iglcoatings.com.

SoyaCincau, Lowyat, and The Edge Malaysia, confirming that the CBU EV duty exemption ended at the end of 2025 and the CKD exemption runs to 31 December 2027 (as of 2026-06-02): https://soyacincau.com, https://www.lowyat.net, and https://theedgemalaysia.com. For your car's official road-tax figure, check with JPJ or the official road-tax lookup, since figures can differ by variant and registered power.

Frequently asked questions

Are EVs still free of road tax in Malaysia in 2026?: No. The EV road-tax exemption in Malaysia ended on 31 December 2025, and from 1 January 2026 EVs are taxed under a new structure based on motor power in kilowatts (kW). You pay the new rate at your first road-tax renewal in 2026. The 2026 rates are, however, designed to stay far lower than an equivalent petrol car, with the lowest figure being RM20 a year. Sources: paultan.org, Carlist.my, and Motorist Malaysia, as of 2026-06-02.
How is 2026 EV road tax calculated?: It is worked out by motor power in kilowatts (kW), with the total road tax equal to the band's base rate plus one increment for every 9.99 kW block. The four main bands are: Band 1 (0.001 to 100 kW) RM20 to RM70, Band 2 (100.1 to 210 kW) RM80 to RM280, Band 3 (210.1 to 310 kW) RM305 to RM575, and Band 4 (310.1 to 410 kW) RM615 to RM1,065. The nominal power is normally used, not the peak overboost figure. Sources: Carlist.my, Motorist Malaysia, and IGL Coatings, as of 2026-06-02.
Why do some EVs pay more road tax than others?: Because 2026 road tax is tied to motor power, not battery size or range. A higher-power EV falls into a higher band and pays more. For example, the BYD Dolphin Standard Range at around 70 kW pays RM40, while the Tesla Model Y Long Range AWD at around 378 kW pays RM915. So two EVs with similar batteries can pay very different road tax if their motor powers differ. Source: Motorist Malaysia, as of 2026-06-02.
Is an EV still cheaper than a petrol car now that road tax applies?: Yes. On average, the 2026 EV road-tax rates are about 85 percent lower than the equivalent ICE (petrol) rates. More importantly, road tax is only a small annual cost; an EV's real saving comes from charging costs that are far lower than petrol. A road tax of a few tens up to a few hundred ringgit a year is small next to the energy saving over a year. To work out the saving for your car, use the calculator on this site. Sources: Carlist.my, Motorist Malaysia, and IGL Coatings, as of 2026-06-02.
What changed with the CKD and CBU EV import incentives in 2026?: The import and excise duty exemption for fully imported EVs (CBU) ended at the end of 2025; from 2026, CBU EVs face broadly 30 percent import plus 10 percent excise plus 10 percent sales tax, or 5 percent plus 10 percent plus 10 percent for China-made EVs under the ASEAN-China free trade agreement. Locally assembled EVs (CKD) remain exempt from import, excise, and sales tax until 31 December 2027. This affects the purchase price, not your annual road tax. Sources: paultan.org, SoyaCincau, Lowyat, and The Edge Malaysia, as of 2026-06-02.

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