New EV road tax structure introduced in Malaysia – here’s how much you’ll be paying from Jan 1, 2026

New EV road tax structure introduced in Malaysia – here’s how much you’ll be paying from Jan 1, 2026

The government recently announced a new road tax structure for electric vehicle (EVs) that will be effective from January 1, 2026. The new road tax structure will replace the previous one that was first determined in 2019 and serves to encourage EV adoption with rates that are comparatively cheaper when compared to internal combustion engine (ICE) vehicles.

At present, all EVs registered in Malaysia are not required to pay road tax until the end of 2025 as part of government’s incentives outlined in Budget 2022. If you’re curious how much you’ll be paying after December 31, 2025, you’ve come to the right place. But first, some explanation is needed.

What’s changed with the new EV road tax structure?

As with the previous EV road tax structure, the new one is still kilowatt (kW)-based and grouped into different motor(s) output power bands. With the older structure, EVs with outputs up to 80,000W (80 kW) are charged a flat rate of either RM20, RM44, RM56 or RM72. Above 80 kW, there are five power bands with differing base and accompanying progressive rates, the latter being a certain amount per 50W (0.05 kW) above the base power output of the band.

The new EV road tax structure also features various power bands, with the first ranging from 1W (0.001 kW) to 100,000W (100 kW). The minimum yearly road tax in this band is RM20, with every 9,999W (9.999 kW) block increment being charged an additional RM10.

New EV road tax structure introduced in Malaysia – here’s how much you’ll be paying from Jan 1, 2026
Click to enlarge

Other bands will have their own minimum yearly road tax (the base rate) and pricing for each 9.999 kW block increment. Only at the very top is there a flat rate of RM20,000, although this applies to extraordinary EVs with a power output of at least 1,010,001W (10,100.01 kW) or more.

In way, the per block increment is similar to the progressive rate of the older structure, but is cheaper overall because the increment block is larger. For example, an EV with a power output of 100 kW is charged just RM70 with the new structure compared to RM274 with the old one – the latter figure is calculated by adding the base rate (RM224) of the effective band with the progressive rate – (100,000W – 90,000W)/50W x RM0.25).

How much will I be paying for EV road tax from January 1, 2026?

To determine the road tax payable, simply find out your EV’s nominal power output (not the figure with overboost, etc.) and see where it fits within the respective power band range. If the EV makes 155 kW, it would fall between the 150,001W (150.001 kW) and 160,000W (160 kW) range, meaning the road tax is RM180.

We’ve pulled power outputs of all EVs currently on sale in Malaysia as well as those expected to go on sale here soon to create this handy table for your reference. As you can tell, the amount payable is a lot cheaper than it was before, and we’ll use the BMW i4 eDrive40 M Sport as an example.

New EV road tax structure introduced in Malaysia – here’s how much you’ll be paying from Jan 1, 2026
Click to enlarge

The i4 eDrive40 M Sport has a power output of 250 kW, which would have a road tax of RM3,724 with the old structure. Over 150,000W (150 kW), the calculation with the previous system would see the base rate (RM1,024) being added with the progressive rate, the latter being the amount of power above 150 kW, which is 100,000W, divided by 50W times RM1.35 to make RM2,700.

With the new structure, the BMW EV’s road tax is reduced to just RM395, which is a massive 89.4% decrease. The lowest powered EVs in our table are the BYD Dolphin Dynamic Standard Range and Neta V with 70 kW, which have a road tax of just RM40. Should you want to do more comparisons, you can do so by using this table as well as the EV road tax calculator based on the older structure currently live on CarBase.my.

So, what do you think of the new EV road tax structure? Does it make EVs more enticing for you and will you be making the switch? Share your thoughts in the comments below.

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Gerard Lye

Originating from the corporate world with a background in finance and economics, Gerard’s strong love for cars led him to take the plunge into the automotive media industry. It was only then did he realise that there are more things to a car than just horsepower count.

 

Comments

  • Untung Manyak Wang on Jun 05, 2024 at 12:28 pm

    Tesla M3P, 460 hp @ 338 kw, why need pay rm 1,640?

    Like or Dislike: Thumb up 2 Thumb down 1
  • azraeil on Jun 05, 2024 at 12:32 pm

    Taycan Turbo GT is 815 kW not 580 kW

    Like or Dislike: Thumb up 0 Thumb down 0
  • Ah Chong on Jun 05, 2024 at 1:05 pm

    When the petrol subsidy goes away, can petrol Roadtax follow this as well? I don’t mind if there’s a slight premium too.

    Myvi has some 75kw power, that’s rm50, we’re paying 90 for 1.5L now. Reduction in Roadtax since petrol naik? Fair right?

    That said. Mustang GT5.0 under 360kw Roadtax rm815 yes please.

    Like or Dislike: Thumb up 1 Thumb down 0
  • Cukur T20! Finally a T20-friendly policy.

    Like or Dislike: Thumb up 3 Thumb down 1
  • Is this structure applicable to EV bikes? Why only cover automobiles?

    Like or Dislike: Thumb up 0 Thumb down 0
  • Cool

    Like or Dislike: Thumb up 3 Thumb down 0
  • Pro-Palestine on Jun 05, 2024 at 3:08 pm

    Road tax road tax, tax tax tax, tu je yang pandai. Buat bisnes dan jana duit untuk rakyat tak pandai. Bodoh

    Like or Dislike: Thumb up 5 Thumb down 3
  • Clean King on Jun 05, 2024 at 3:11 pm

    EV owner semua boleh senyum la dan ICE owners yang selalu kutuk roadtax EV boleh nagis la. Hahaha. Tapi banyak negara lain tak ada road tax langsung. Kita je yang bodoh

    Like or Dislike: Thumb up 2 Thumb down 1
  • ROTI CANAI on Jun 05, 2024 at 4:07 pm

    fair enough, but make it progressive for older ev’s, so i don have to pay so much roadtax for 2nd hand porsches taykan

    Like or Dislike: Thumb up 1 Thumb down 0
  • Great. Now affordable

    Like or Dislike: Thumb up 2 Thumb down 0
  • RM1.50/L petrol mana? on Jun 05, 2024 at 5:37 pm

    As above.
    PH Gomen continue to troll millions of Msians

    Like or Dislike: Thumb up 0 Thumb down 3
  • Permainan Maha kaya on Jun 05, 2024 at 8:43 pm

    Cukurrrrr rotek EV murah. Terima kasih kerajaan PH kerana prihatin kat T20

    Like or Dislike: Thumb up 2 Thumb down 0
  • Peppa Menagis on Jun 06, 2024 at 9:05 am

    This is great news to have EV roadtax much lower than ICE cars. Malaysia gonna be one of the pioneer of Green nation is south east asia.
    Puak jenis Peppa menagis lol. Chinese EV sales gonna hit the roof. Dah lah jual macam hot cakes, sekarang ni gonna flood the road and make Malaysian road looking modern again. Mantap

    Like or Dislike: Thumb up 0 Thumb down 0
 

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