The Haryana Cabinet, chaired by Chief Minister Nayab Singh Saini, approved a sweeping tax break for electric vehicle buyers on Tuesday, July 28, 2026. The move brings the state's EV incentives closer in line with neighbouring Delhi, even as questions remain about how it compares on direct subsidies.
What Changed
Under the new decision, all new pure electric or battery-operated vehicles, including two-wheelers, three-wheelers (autos and e-rickshaws), and four-wheelers, registered in Haryana with an ex-showroom price of up to Rs 30 lakh will get a 100% exemption from Motor Vehicle Tax. EVs priced above Rs 30 lakh will get a 50% exemption.
This is a major jump from the earlier policy, under which EVs and CNG vehicles both received a flat 20% one-time tax rebate at registration. That 20% rebate continues unchanged for CNG vehicles, but for electric vehicles it has now effectively been replaced by the new structure.
The decision fulfils a commitment CM Saini made during his 2026-27 Budget speech on March 2, 2026, when he said the government would consider raising the existing EV tax exemption. It was formalised under Section 3 of the Haryana Motor Vehicles Taxation Act, 2016, which governs how motor vehicle tax is levied across vehicle categories in the state.
Additional Chief Secretary (Transport) Dr Raja Sekhar Vundru said the move is expected to boost EV adoption in the state, helping curb pollution and improve air quality over time.
A Separate Rebate for Women Buyers
In the same Cabinet meeting, Haryana also approved a 1% additional rebate on motor vehicle tax for non-commercial vehicles priced up to Rs 20 lakh when purchased and registered in a woman's name. This was also a Budget 2026-27 announcement; the Finance Department set the Rs 20 lakh price cap before implementation.
For four-wheelers, this brings the rate down from 5% to 4% (up to Rs 6 lakh) and from 8% to 7% (Rs 6–20 lakh). For two-wheelers, it cuts the rate from 4% to 3% (up to Rs 75,000), from 6% to 5% (Rs 75,000–2 lakh), and from 8% to 7% (Rs 2–20 lakh). Vehicles above these respective price caps see no change. Officials described the move as an effort to promote women's financial independence and encourage vehicle registration in their own names.
The Bigger Picture: A Subsidy Gap Haryana Is Still Closing
This tax exemption isn't the only EV-related reform in motion in Haryana. Roughly ten days earlier, on July 17, 2026, Industries and Commerce Minister Rao Narbir Singh had directed officials to explore amending the state's Electric Vehicle Policy, 2022, so that subsidies could be paid upfront at the time of purchase, rather than being claimed after the fact, modelled on approaches used by the Centre and the Delhi government. That amendment has not yet received Cabinet approval and has no notified timeline; officials said the existing 2022 policy remains in force until 2027 while the changes are studied.
The urgency behind that review was underlined by residents like Jatin Gulati of Sector 48, Gurgaon, who pointed out that many Haryana buyers were registering their EVs in Delhi or Noida instead, simply because those subsidies were more attractive. The July 28 tax exemption addresses part of that gap, but Haryana still does not offer a direct, upfront purchase subsidy the way Delhi does. That piece is still under consideration.
Haryana vs Delhi: How the Two EV Policies Compare
| Feature | Haryana (post-July 28, 2026) | Delhi EV Policy 2.0 (effective July 1, 2026) |
| Road/Motor Vehicle Tax | 100% exemption up to Rs 30 lakh; 50% above | 100% exemption on road tax + registration fee up to Rs 30 lakh |
| Direct purchase subsidy | Yes, but as a post-purchase reimbursement: up to Rs 30,000 (two-wheelers) and Rs 1.5 lakh (four-wheelers) under EV Policy 2022. Instant, point-of-sale disbursal is under review, no timeline yet | Yes, deducted upfront and tiered by year (e.g., two-wheelers: Rs 30,000 in Year 1, Rs 20,000 in Year 2, Rs 10,000 in Year 3) |
| Three-wheeler incentive | Tax exemption only | Direct subsidy up to Rs 50,000 (Year 1), stepping down in later years |
| Scrappage incentive | Not part of this policy | Yes, up to Rs 1 lakh for scrapping old BS-IV/older vehicles |
| Women-specific benefit | Yes, extra 1% MV tax rebate up to Rs 20 lakh | Not a distinct feature of the current policy |
| Hybrid vehicles | Not applicable (policy covers pure EVs) | Explicitly excluded, pure BEVs only |
| Mandated ICE phase-out | None announced | Electric-only registration for 3-wheelers/N1 trucks from Jan 1, 2027; two-wheelers from April 1, 2028 |
| Policy duration/target | Ongoing tax policy; EV Policy 2022 (manufacturing incentives) runs till 2027 | July 1, 2026 – March 31, 2030; targets 30% EV share of Delhi's fleet |
| Budget outlay | Not disclosed | Rs 15,000 crore |
What This Means for Buyers
For now, Haryana's edge is on the tax side: buyers pay less at registration, and women buyers get an added discount. Delhi's policy goes further by combining tax exemptions with direct cash-in-hand subsidies, scrappage bonuses, and a firm roadmap to phase out fossil-fuel vehicles in specific categories. That gap is precisely what Haryana's proposed subsidy-mechanism overhaul is meant to close, but until it's approved and notified, Delhi remains the more generous option for buyers chasing upfront savings, even as Haryana narrows the difference on taxation.
