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

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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 …

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 vehicles.. 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.and grouped into different motor output power bands.

The new EV road tax structure also features various power bands, with the first ranging from 1W to 100,000W . The minimum yearly road tax in this band is RM20, with every 9,999W block increment being charged an additional RM10.Other bands will have their own minimum yearly road tax 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 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 of the effective band with the progressive rate – /50W x RM0.25).

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.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.

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.

 

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New road tax rates for EVs effective Jan 1, 2026: LokeKuala Lumpur: Road tax (LKM) rates for zero emission vehicles (ZEV) or electric vehicles are set based on the power of the electric motor and it will come into force on January 1, 2026, announced Transport Minister Anthony Loke.
Source: DailyExpress_MY - 🏆 3. / 83 Read more »