Annual EV Tax in 2026: Update on the Draft 80% Tax Cut and How to Estimate It

Beyond energy and maintenance costs, annual tax is another expense EV owners should know about. Until recently, EV drivers in Thailand benefited from an 80% annual tax reduction, which expired at the end of 2025, and the Department of Land Transport is now pushing for a new measure. This article summarizes the latest status and the calculation principles you should understand.

EV Tax Is Based on Vehicle Weight

Combustion-engine cars are taxed according to engine displacement, but fully electric cars have no engine, so their annual tax is based on vehicle weight according to the rate schedule annexed to the Motor Vehicle Act B.E. 2522 (1979). In an example reported by Khaosod, an 1,800 kg electric sedan has a standard tax rate of THB 1,600 per year, which drops to just THB 320 with an 80% discount.

The Previous Measure Has Ended

The 2022 royal decree reducing annual tax for electric vehicles gave an 80% discount for one year from the date of registration and expired on 10 November 2025. Thansettakij reports that while the measure was in effect, a total of 316,657 EVs were registered, about 2.46 times the number expected without it.

New Draft Measure for 2026

In 2026, the Department of Land Transport drafted a royal decree to extend the annual tax reduction for EVs. According to Thansettakij

• The draft covers new factory-built EVs registered within a specified period after the law takes effect
• In June 2026, it was reported that the Department was also preparing similar legislation for hybrids and plug-in hybrids to ease the cost of living during a period of high energy prices
• At the time of reporting, all drafts were still under public consultation and will not take effect until published in the Royal Gazette

Final details, such as the discount rate and eligibility period, may change, so owners should follow official announcements from the Department of Land Transport

How Does Annual Tax Differ from Excise Tax?

Many buyers confuse these two types of tax. Excise tax is paid by the manufacturer or importer and is already included in the car's selling price; EVs under the EV 3.5 scheme enjoy a special rate of 2%. Annual tax, on the other hand, is paid by the owner every year to renew the tax disc, together with compulsory motor insurance. Understanding the difference helps you estimate the cost of owning a car more accurately.

What Owners Should Do

• Check the vehicle weight in the registration book to estimate that car's standard tax rate
• Follow the status of the new royal decree; if you register a car while it is in effect, you may be eligible for a tax reduction
• Pay your tax on time, which is now easy to do through the Department of Land Transport's online channels

Even without a discount, an EV's annual tax is only a small fraction of the energy costs saved each year. The Motor Creation team can help estimate the total cost of owning a Deepal, Geely, Riddara or Farizon EV and take care of the registration process for you. Come and talk to us and take a test drive at our showroom.