Haryana has started implementing its new EV motor vehicle tax exemption policy. Buyers of eligible electric vehicles priced up to ₹30 lakh can now get a 100% waiver on motor vehicle tax, while EVs above ₹30 lakh receive a 50% exemption.

Haryana has officially rolled out its new electric vehicle tax exemption policy, bringing a significant reduction in the upfront cost of buying and registering an EV in the state. The policy came into effect on August 21, 2026, and EV registrations under the new system have already started in Gurugram and Badshahpur.

The move is particularly significant for EV buyers in Gurugram, Faridabad and other parts of Haryana, where motor vehicle tax can add a substantial amount to the on-road price of a vehicle.

Haryana EV Road Tax Waiver: What's the New Rule?

Under the new policy, Haryana has introduced a two-tier motor vehicle tax exemption for new battery-operated electric vehicles.

EV Ex-showroom priceMotor vehicle tax exemption
Up to ₹30 lakh100%
Above ₹30 lakh50%

The 100% exemption applies to new pure battery-electric vehicles, including electric two-wheelers, three-wheelers, e-rickshaws, autos and four-wheelers. EVs priced above ₹30 lakh are eligible for a 50% motor vehicle tax exemption.

This means an eligible EV buyer does not have to pay the applicable motor vehicle tax for a vehicle priced up to ₹30 lakh, although other applicable registration-related charges can still remain payable.

Policy Is Already Live in Haryana

This is no longer just a Cabinet announcement.

The Haryana government says the new tax exemption system became operational on August 21, 2026, and the first EVs under the new system have already been registered in Gurugram and Badshahpur.

The first reported registrations also demonstrate the actual financial benefit.

A Mahindra BE Formula EV registered in Gurugram had a motor vehicle tax liability of ₹2,44,900, which was completely waived under the new system.

Similarly, a https://www.evfy.in/ecars/tata/tata-tiago-evTata Tiago EV registered in Badshahpur received a motor vehicle tax benefit of ₹81,120.

So, depending on the vehicle and its applicable tax, the saving can run from tens of thousands to several lakh rupees.

Who Is Eligible for the Haryana EV Tax Waiver?

The exemption applies to new pure electric/battery-operated vehicles that meet the state's eligibility requirements.

The policy covers:

For vehicles with an ex-showroom price of ₹30 lakh or less, the motor vehicle tax exemption is 100%. Vehicles above ₹30 lakh receive a 50% exemption.

Important: EV Must Be Purchased and Registered in Haryana

This is one of the most important conditions for buyers.

According to the Haryana government, the tax exemption is available only when the electric vehicle is purchased and registered in Haryana. EVs purchased from another state are not eligible for the motor vehicle tax exemption under this scheme.

Therefore, someone living in Gurugram cannot simply purchase an EV from a Delhi dealership and assume that registering it in Haryana will automatically make it eligible for the exemption.

Buyers should confirm the eligibility and applicable process with the Haryana dealership before making the purchase.

How Much Can EV Buyers Save?

The actual saving depends on the motor vehicle tax applicable to the particular vehicle.

The government's first registrations provide a useful indication:

  • Mahindra BE Formula EV: ₹2.44 lakh motor vehicle tax waived
  • Tata Tiago EV: ₹81,120 motor vehicle tax waived

These are actual reported registration cases rather than hypothetical calculations.

This is why the benefit can be particularly significant for EVs that fall close to the ₹30 lakh ex-showroom threshold.

What Happens to EVs Above ₹30 Lakh?

The policy doesn't completely exclude premium electric vehicles.

Instead, EVs with an ex-showroom price above ₹30 lakh receive a 50% exemption from motor vehicle tax.

For example, if the applicable motor vehicle tax on an eligible premium EV is ₹X, the buyer would receive a 50% exemption and pay the remaining applicable amount.

The ₹30 lakh threshold therefore creates two distinct tax brackets rather than a complete cut-off for EV incentives.

What About CNG Vehicles?

The new EV exemption does not replace the existing CNG tax benefit.

Haryana has stated that the existing 20% motor vehicle tax rebate for CNG vehicles will continue unchanged.

This means the latest change is an enhancement specifically targeted at pure electric vehicles.

Is This an EV Subsidy?

Not exactly.

The benefit is primarily a motor vehicle tax exemption, rather than a direct cash subsidy paid to the buyer.

For eligible EVs up to ₹30 lakh, the government effectively removes the applicable motor vehicle tax at registration. That directly reduces the amount a buyer has to pay when registering the vehicle.

This distinction is important because the Haryana policy should not be confused with purchase subsidies such as those available under central EV-support schemes.

Why the Policy Matters for Gurugram EV Buyers

Gurugram is one of Haryana's biggest automobile and technology markets, and the city has a rapidly growing EV ecosystem.

Removing motor vehicle tax for EVs up to ₹30 lakh can make several electric cars and two-wheelers more competitive on their on-road price, particularly when compared with similarly priced petrol or diesel vehicles.

The government says the policy is intended to encourage EV adoption, reduce vehicular emissions and support cleaner transportation across Haryana.