# Electric Vehicle Road Tax in Malaysia: The New Kilowatt-Based (kW) Structure

> From 1 January 2026, electric vehicles in Malaysia are subject to road tax again — but this time based on motor power (kW), not engine capacity (cc). Here is an explanation of the RM20 minimum rate, how the base-plus-add-on structure works, and how it ties in with insurance.

- Category: transport
- Language: en
- Status: published
- Updated: 2026-08-08
- Canonical: https://negaraku.md/en/transport/electric-vehicle-ownership

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The era of free road tax for electric cars in Malaysia is over — but the first bill that lands in your MyJPJ may be cheaper than you think, and it is calculated in an entirely new way.

Since 2022, the government exempted EVs from road tax to encourage their adoption. That exemption ended on 31 December 2025 and was not extended. From 1 January 2026, every private EV pays the Motor Vehicle Licence (LKM) again — only the formula is now completely different from petrol cars.

## Why are EVs no longer calculated by "cc"?

Internal combustion engine (ICE) cars are calculated by engine capacity in cubic centimetres (cc). Electric motors have no "cc", so that old formula makes no sense for EVs. Instead, JPJ uses the registered **electric motor power in kilowatts (kW)** as the basis of the calculation.

In practical terms, kW acts as a proxy for the vehicle's size and price: a small city EV has low power and low tax, while a high-performance sedan has high power and higher tax.

## How is the kW rate calculated?

The structure is a **base rate plus a progressive add-on**. Each power band has a fixed base rate, and for each 9,999-watt block (roughly 10 kW) above that band's threshold, a fixed amount is added. The details of this 9,999-watt block structure come from automotive media reports (paultan.org, SoyaCincau) describing the review announced in June 2024, not from the accessible text of JPJ's LKM v2 (2022) guidelines.

- EVs **50 kW and below** pay the minimum rate of **RM20 per year** — this minimum figure is confirmed in JPJ's official LKM guidelines (v2, 2022) and matches the rate list effective 1 January 2026.
- Above 50 kW, the tax rises in stages according to the power band; the higher the kW, the larger the base rate and the add-on rate per block.

According to Transport Minister Anthony Loke when he announced this structure on 4 June 2024, the new rates are **on average roughly 85% lower** — and **up to 89% lower** at certain ends — than the **EV road tax rates that had previously been set**, not compared to petrol cars. EV rates are also generally lower than equivalent ICE cars, though that advantage is most pronounced on high-power vehicles. Loke also stated the rates will be reviewed at least once every five years.

## How much do actual models pay?

According to the list compiled by paultan.org (effective 1 January 2026), most mainstream EVs pay between RM20 and a few hundred ringgit per year:

| Model (example) | Motor power | Annual road tax |
|---|---|---|
| Wuling Bingo | 50 kW | RM20 (minimum) |
| BYD Seal 6 Premium | 160 kW | RM180 |
| Perodua QV-E | 150 kW | RM240 |
| BMW i4 eDrive35 M Sport | 210 kW | RM280 |
| Lotus Eletre ("900" version) | 675 kW | RM4,890 (among the highest) |

Note that the QV-E (150 kW) pays more than the Seal 6 (160 kW) even though its power is lower. This is **most likely** because the rate also depends on the vehicle's body class (saloon versus non-saloon), given that JPJ's guidelines have separate schedules for saloon and non-saloon — but the exact reason is not stated explicitly in the cited sources, so treat this as interpretation. Always verify your vehicle's exact amount through the MyJPJ app.

## Is EV insurance different?

Road tax and insurance are two separate things, but they are closely linked: the JPJ system requires an active motor insurance policy **before** it allows road tax renewal. So renew your insurance first, then the LKM.

EVs are insured by market value or insured value like any other car. Cheaper road tax does not automatically make insurance cheaper — insurance cost depends on the vehicle's value, claims record, and insurer factors.

## What's next

- Check your vehicle's motor power (kW) on the registration certificate (geran) to estimate your tax band.
- Make sure your motor insurance is active before renewing the LKM via **MyJPJ**, a JPJ counter, the post office, or an authorised agent.
- Because the rates will be reviewed at least once every five years, don't assume this year's bill lasts forever — check again at each renewal.
- For the latest official rates, refer to the electric vehicle LKM guidelines on the official JPJ portal.

## Sources

- Garis Panduan Pengiraan Kadar Lesen Kenderaan Motor (LKM) Bagi Kenderaan Elektrik (v2) — https://www.jpj.gov.my/wp-content/uploads/2022/11/Garis-Panduan-LKM-Kenderaan-Elektrik-v2.pdf (Jabatan Pengangkutan Jalan (JPJ))
- Panduan Pengiraan Kadar (LKM) — https://www.jpj.gov.my/en/rate-calculation-guide-lkm/ (Jabatan Pengangkutan Jalan (JPJ))
- Road tax prices for all EV models in Malaysia effective Jan 1, 2026 - between RM20 and RM4,890 per year — https://paultan.org/2026/01/07/road-tax-prices-for-all-ev-models-in-malaysia-effective-jan-1-2026/ (Paul Tan's Automotive News (paultan.org))
- EV road tax fees in 2026 to be about 85% lower than present rate, says Loke — https://www.thestar.com.my/news/nation/2024/06/04/ev-road-tax-fees-in-2026-to-be-about-85-lower-than-present-rate-says-loke (The Star)
- New EV road tax structure for Malaysia announced from 2026 - cheaper than ICE; as low as RM40 per year — https://paultan.org/2024/06/04/new-ev-road-tax-structure-for-malaysia-announced/ (Paul Tan's Automotive News (paultan.org))
- Struktur cukai jalan baharu bagi EV di M'sia bermula 2026 — lebih murah dari ICE; serendah RM40 setahun — https://paultan.org/bm/2024/06/04/struktur-cukai-jalan-baharu-bagi-ev-di-msia-bermula-2026-lebih-murah-dari-ice-serendah-rm40-setahun/ (Paul Tan's Automotive News (paultan.org))
- EV Road Tax Malaysia: New formula from 2026 onwards — https://soyacincau.com/2024/06/04/ev-road-tax-malaysia-new-formula-2026/ (SoyaCincau)

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Source of truth: https://github.com/negaraku-md/NegaraKu.md
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