By Piyush P. Yadav

The single biggest saving on an Indian EV purchase often has nothing to do with the manufacturer’s discount. It is the state government’s road tax and registration-fee waiver, which on a Rs 15 lakh to Rs 20 lakh electric car can be worth Rs 1.5 lakh to Rs 3 lakh, far more than most festive-season cash offers. But these waivers are state subjects, they run on different timelines, and several have already expired or are about to. Here is where every major state stands in September 2026, and the deadlines worth planning a purchase around.

State-by-state: road tax and registration on EVs

State Road tax / registration status Deadline or expiry
Delhi 100 per cent waiver on EVs priced under Rs 30 lakh, under EV Policy 2.0 notified July 1, 2026, with a roughly Rs 15,000 crore outlay In force to March 31, 2030
Maharashtra 100 per cent road tax and registration-fee exemption; 100 per cent toll exemption on routes including the Mumbai-Pune Expressway; four-wheeler subsidy capped at Rs 1.5 lakh Policy runs to 2030
Tamil Nadu 100 per cent road-tax exemption, extended to cover transport and non-transport EVs including two-wheelers, autos and private cars Extended to December 31, 2027 — the longest runway currently on offer
Telangana Zero road tax and zero registration fee on cars, two-wheelers, e-autos, taxis, tractors and buses; no separate cash subsidy Registrations must complete by December 31, 2026
Gujarat Purchase incentive of Rs 10,000 per kWh, capped at Rs 1.5 lakh or 40 per cent of ex-factory price; partial road tax and registration relief Subject to policy review; check current notification before buying
Karnataka Road tax exemption has ended; EVs are now taxed Ended in 2026 — see our dedicated coverage below
Uttar Pradesh Road tax waiver has expired Expired October 2025

We covered Karnataka’s withdrawal in detail, including the state-by-state comparison at the time, in our report on Karnataka ending its EV tax exemption. The pattern across these seven states is a genuine north-south, west-central split: Maharashtra and Tamil Nadu have committed to exemptions running to 2027 and 2030 respectively, while Karnataka and Uttar Pradesh, two of the largest EV markets by volume, have already withdrawn theirs. Telangana’s December 31, 2026 deadline is the one to watch most closely this quarter — anyone in Hyderabad or elsewhere in the state weighing a purchase for early 2027 should seriously consider bringing it forward.

Central incentives: what’s live and what has lapsed

Scheme Status in September 2026
PM E-DRIVE (two-wheeler subsidy) Live, extended to March 31, 2028; Rs 2,500 per kWh capped at Rs 5,000 per vehicle
PM E-DRIVE (e-truck incentive) Live; Rs 2.7 lakh to Rs 9.6 lakh per truck, requires scrapping an old diesel truck
Proposed heavy-duty EV financing scheme Proposed September 1, 2026; not yet approved — see our coverage
Section 80EEB (income-tax deduction on EV loan interest, up to Rs 1.5 lakh) Closed to new loans since March 31, 2023; only available to taxpayers still repaying an eligible loan sanctioned before that date, and only under the old tax regime

The Section 80EEB point catches many first-time buyers by surprise. It is frequently cited in older articles and even some dealer conversations as a live incentive, but the window for new loans to qualify closed more than three years ago. If you are financing a purchase today, this deduction is not available to you regardless of which tax regime you file under; only borrowers who took an eligible loan between April 2019 and March 2023 can still claim it annually until that loan is repaid. For everything currently live at the centre for heavy vehicles, see our analysis of the proposed Rs 9,852 crore heavy-duty EV scheme, and for the two-wheeler subsidy’s recent extension, our report on PM E-DRIVE’s extension to March 2028.

How to actually use this information

  • Check your state’s live notification before assuming a waiver applies. Policies referenced in older articles, including some still circulating online, have since expired in Karnataka and Uttar Pradesh.
  • If you’re in Telangana, price in the December 31, 2026 deadline. A car registered on January 1, 2027 could face road tax and registration fees that a car registered a week earlier would not.
  • Tamil Nadu and Maharashtra buyers have the most runway and can weigh festive discounts against the tax saving without urgency, since the exemptions run to 2027 and 2030 respectively.
  • Don’t count on Section 80EEB unless you already hold a qualifying pre-2023 loan. It should not factor into a 2026 purchase decision.
  • Ask your dealer for the exact on-road price, not just the ex-showroom figure, since road tax and registration fee treatment is what actually varies by state, not the manufacturer’s price.

Sources & Further Reading

FAQ

Which Indian states currently waive road tax on EVs?

Delhi (to March 2030, cars under Rs 30 lakh), Maharashtra (to 2030), Tamil Nadu (to December 2027) and Telangana (registrations by December 31, 2026) currently offer full or near-full waivers. Karnataka and Uttar Pradesh have withdrawn theirs.

Is Section 80EEB still available for EV buyers in 2026?

No, not for new loans. It applied only to EV loans sanctioned between April 2019 and March 2023. Buyers taking a loan today cannot claim this deduction.

What is the deadline for Telangana’s EV tax exemption?

The vehicle must be registered by December 31, 2026 to qualify for zero road tax and zero registration fee.

Which state has the longest EV tax exemption window?

Tamil Nadu, whose 100 per cent road-tax exemption runs until December 31, 2027, followed by Maharashtra and Delhi, both running to March 2030.