Open Hands

In a big move, Karnataka removes road tax exemptions for electric vehicles priced above ₹25 lakh. Premium EVs will now face a 10% lifetime tax.

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One-Time Lifetime Tax Now Applies

The state has replaced annual vehicle taxes with a one-time lifetime tax under the 2025 Motor Vehicles Taxation Act

Here’s the New EV Tax Slab

– Under ₹10L: 5% tax – ₹10L–₹15L: 9% tax – Over ₹15L: 15% tax – EVs over ₹25L: 10% (Previously 0%)

Premium EV Buyers Hit Hard

High-end EVs like the BMW iX, Audi e-tron, and Tata Nexon EV Max are no longer tax-exempt in Karnataka, making them costlier to own

The state still supports clean mobility. EVs under ₹25L remain tax-friendly as Karnataka targets ₹50,000 Cr in EV investments by 2029.

EV Push Continues—for Affordable Buyers