Kerala has announced revised road tax rates for electric vehicles as part of its updated state budget presented on June 18, 2026. The biggest relief comes for EV buyers in the ₹15 lakh to ₹20 lakh price bracket, where road tax has been reduced from 8 percent to 5 percent. This 3-percentage-point reduction can translate into savings of up to ₹74,000 on eligible electric vehicles. For an EV priced at ₹20 lakh, buyers can expect a direct saving of ₹60,000 at the time of registration.
Kerala cut road tax on EVs priced 15L-20L to 5%, saving buyers up to 74,000 rupees.
Entry-level EVs priced below 10L see tax cut to 3%, while 10L-15L models remain unchanged.
Luxury EVs priced over 40L will become more expensive with road tax increasing to 15%.
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