Big relief for EV buyers: TN govt extends 100% motor vehicle tax waiver till Dec 31, 2027
The development was confirmed by Tamil Nadu industries minister Dr T R B Rajaa in a social media post.
- Dec 31, 2025,
- Updated Dec 31, 2025 10:59 AM IST
In good news for electric vehicle owners, the Tamil Nadu government extended 100 per cent motor vehicle tax exemption for all EVs till December 31, 2027. The development was confirmed by Tamil Nadu industries minister Dr T R B Rajaa in a social media post.
The exemption is applicable to transport and non-transport vehicles, including two-wheelers, private cars, and three-seater auto-rickshaws registered in the state between January 1, 2023 and December 31, 2025.
The minister said that the decision reinforces the Stalin government's commitment to support EV adoption, affordability and manufacturing at scale. He also mentioned that electric vehicle adoption in the state has reached 7.8 per cent in 2025, adding that there is a long way to go vis-à-vis charging infrastructure.
"In exercise of the powers conferred by sub-clause (b) of clause (1) of section 20 of the Tamil Nadu Motor Vehicles Taxation Act, 1974 (Tamil Nadu Act 13 of 1974), the Governor of Tamil Nadu hereby exempts all Battery Operated Vehicles, both transparent and non-transparent (electric vehicles) from payment of motor vehicle tax under that Act for a further period commencing on and from the 1st January 2026 and ending with the 31st December 2027," the notification shared by T R B Rajaa read.
The minister wrote in his post, "This policy reduces cost for consumers while giving manufacturers long-term certainty. Even as global markets face volatility and pressure on clean mobility investments, Tamil Nadu keeps its signal clear and stable!"
Besides this, the Tamil Nadu Electric Vehicle Policy, 2019, was revised in 2023 to include a waiver on registration fees as per Government of India notifications and subsidies and tax exemptions for companies manufacturing EVs, batteries, and charging infrastructure.
The announcement comes months ahead of the upcoming assembly elections in Tamil Nadu. Assembly elections in Tamil Nadu are expected to be held in April-May 2026 across 234 seats.
In good news for electric vehicle owners, the Tamil Nadu government extended 100 per cent motor vehicle tax exemption for all EVs till December 31, 2027. The development was confirmed by Tamil Nadu industries minister Dr T R B Rajaa in a social media post.
The exemption is applicable to transport and non-transport vehicles, including two-wheelers, private cars, and three-seater auto-rickshaws registered in the state between January 1, 2023 and December 31, 2025.
The minister said that the decision reinforces the Stalin government's commitment to support EV adoption, affordability and manufacturing at scale. He also mentioned that electric vehicle adoption in the state has reached 7.8 per cent in 2025, adding that there is a long way to go vis-à-vis charging infrastructure.
"In exercise of the powers conferred by sub-clause (b) of clause (1) of section 20 of the Tamil Nadu Motor Vehicles Taxation Act, 1974 (Tamil Nadu Act 13 of 1974), the Governor of Tamil Nadu hereby exempts all Battery Operated Vehicles, both transparent and non-transparent (electric vehicles) from payment of motor vehicle tax under that Act for a further period commencing on and from the 1st January 2026 and ending with the 31st December 2027," the notification shared by T R B Rajaa read.
The minister wrote in his post, "This policy reduces cost for consumers while giving manufacturers long-term certainty. Even as global markets face volatility and pressure on clean mobility investments, Tamil Nadu keeps its signal clear and stable!"
Besides this, the Tamil Nadu Electric Vehicle Policy, 2019, was revised in 2023 to include a waiver on registration fees as per Government of India notifications and subsidies and tax exemptions for companies manufacturing EVs, batteries, and charging infrastructure.
The announcement comes months ahead of the upcoming assembly elections in Tamil Nadu. Assembly elections in Tamil Nadu are expected to be held in April-May 2026 across 234 seats.