With the rising push toward cleaner mobility, Road Tax Exemption 2025 is one of the most attractive incentives offered to electric vehicle (EV) owners across India. This initiative is part of the larger effort to reduce carbon emissions, cut dependence on fossil fuels, and accelerate EV adoption nationwide. As various states roll out their own EV policies, the structure and scale of tax exemptions and subsidies differ significantly.
Here’s a detailed, state-wise breakdown of road tax benefits for EVs in 2025 and how to claim them.
Why Road Tax Exemption Matters in 2025
Road tax is a significant upfront cost when registering a new vehicle. For internal combustion engine (ICE) vehicles, this can range from 4% to 20% of the vehicle’s cost, depending on the state and vehicle category. In contrast, Road Tax Exemption 2025 for EVs reduces or completely waives this fee, directly lowering the total cost of ownership.
Combined with EV Subsidy State Wise programs, this relief makes EVs more financially accessible to the average consumer.
State-Wise Road Tax Benefits for EVs in 2025
Delhi
- Exemption: 100% road tax waived for all electric vehicles.
- Other Perks: Waiver on registration fees and separate subsidies for two-wheelers and four-wheelers.
Maharashtra
- Exemption: 100% road tax exemption until March 2025.
- Subsidy: Up to Rs. 1.5 lakh for four-wheelers under the EV Subsidy State Wise scheme.
Karnataka
- Exemption: Full road tax exemption.
- Note: Applies to both personal and commercial EVs.
Tamil Nadu
- Exemption: 100% exemption valid for five years from policy launch.
- Additional Benefit: Encouragement for EV manufacturing and charging infrastructure.
Gujarat
- Exemption: Complete waiver on road tax.
- Subsidy: Rs. 10,000 per kWh for electric two- and three-wheelers.
Telangana
- Exemption: 100% road tax exemption for all EV categories.
- Support: Benefits extend to EV fleets and ride-sharing companies.
Rajasthan
- Exemption: 100% road tax relief for EVs until 2027.
- Other Benefits: Interest-free loans and parking fee waivers.
Uttar Pradesh
- Exemption: 100% road tax exemption for EVs manufactured within the state.
- Partial Exemption: 75% relief for EVs from other states.
Haryana
- Exemption: Road tax waived for all electric vehicles until 2025.
- Extra Perk: Income tax benefits for EV buyers.
West Bengal
- Exemption: Full exemption on road tax.
- Supportive Measures: Fast-tracked registration and charging station incentives.
Note: All benefits are subject to updates by state governments. It’s recommended to check the latest notifications on respective transport department portals.
How to Apply for Road Tax Exemption in 2025
The application process for Road Tax Exemption 2025 is relatively straightforward but may vary slightly by state.
Step-by-Step Application Guide:
- Purchase an Approved EV: Ensure the vehicle is listed under the FAME-II scheme or state-approved list.
- Visit the RTO: Apply at your local Regional Transport Office (RTO) during registration.
- Submit Required Documents:
- Vehicle invoice
- Aadhar card or any valid ID proof
- Insurance papers
- Manufacturer’s certificate (indicating it’s an EV)
- Exemption Processing: The RTO processes the road tax exemption or refund (if tax was paid earlier).
- Keep Copies: Always retain copies of submitted documents and exemption confirmation.
Impact on EV Ownership in India
The combined impact of Road Tax Exemption 2025 and EV Subsidy State Wise schemes has made EVs more appealing. Consumers are more willing to switch to electric mobility when the upfront costs are significantly reduced. Moreover, manufacturers are also incentivized to expand their EV lineup, seeing increased demand.
Frequently Asked Questions (FAQ)
Q1. Do all EVs qualify for road tax exemption in 2025?
Most state policies cover all types of EVs, but it’s important to ensure the vehicle is on the approved list for exemption eligibility.
Q2. Can I claim exemption if I buy an EV in one state and register it in another?
Exemptions typically apply only within the state of registration. Some states offer partial exemptions for out-of-state EVs.
Q3. Is the exemption applicable on used EVs?
Generally, road tax exemptions are meant for new vehicle registrations. Used EVs may not qualify.
Q4. How do I check the current status of road tax exemption in my state?
Visit your state’s transport department website or consult your local RTO.
Q5. Is road tax exemption automatically applied when buying an EV online or through a dealer?
In most cases, dealerships facilitate the process, but it’s best to confirm and follow up with the RTO to ensure proper exemption.
click here to learn more