Road tax in Malaysia, officially the Motor Vehicle Licence (Lesen Kenderaan Motor, LKM), is the annual fee every registered vehicle must pay to use a public road. The Road Transport Department (JPJ) issues and enforces it under the Road Transport Act 1987 (Act 333). Rates depend on engine capacity (cc), vehicle classification (saloon vs non-saloon), ownership type (private vs company), fuel type and region of registration. From 1 January 2026, electric vehicles are taxed on motor power output (kW) instead of engine displacement, after the EV exemption ended on 31 December 2025. Road tax revenue is not ring-fenced for road repairs. It flows into the federal Consolidated Fund and is then allocated to infrastructure, public transport and traffic safety programmes through the annual budget.
What is road tax in Malaysia?
Road tax in Malaysia is a licensing fee imposed under the Road Transport Act 1987 (Act 333) on every motor vehicle that uses a public road. It is the legal authorisation to drive a registered vehicle on Malaysian roads, evidenced by either a printed LKM disc on the windscreen or the digital LKM in the MyJPJ app. JPJ collects the fee and enforces compliance through roadblocks, the Automated Enforcement System (AES) and integration with the eINSURANS database. Without a valid LKM the vehicle is unlicensed and the owner risks compound fines, vehicle seizure and voided motor insurance.
How is road tax calculated in Malaysia?
Malaysian road tax is calculated on engine displacement (cc) for internal-combustion vehicles, with adjustments for classification, ownership and region. Five inputs decide the final figure.
| Input | Effect on annual tax |
|---|---|
| Engine capacity (cc) | Primary driver. Flat below 1,600 cc, progressive above. |
| Vehicle classification | Saloon vs non-saloon (SUV, MPV, pick-up). Non-saloon is cheaper above 3,000 cc. |
| Ownership type | Private individual is cheapest. Company registration is roughly 3x. |
| Region of registration | Sabah/Sarawak roughly 30 to 35% of Peninsular. Duty-free islands flat RM 50. |
| Fuel type | EVs use kW schedule from 1 Jan 2026. Hybrids and PHEVs follow ICE rules. |
Below 1,600 cc the rate is flat: RM 20, RM 55, RM 70 or RM 90 depending on band. Above 1,600 cc a base rate plus a progressive per-cc charge applies. The curve gets steep above 3,000 cc.
What are the road tax brackets in Malaysia?
The full Peninsular Malaysia schedule for private saloon cars sits in nine bands. Four flat, five progressive.
| Engine capacity | Base rate (RM) | Per-cc surcharge |
|---|---|---|
| ≤ 1,000 cc | 20 | Flat |
| 1,001–1,200 cc | 55 | Flat |
| 1,201–1,400 cc | 70 | Flat |
| 1,401–1,600 cc | 90 | Flat |
| 1,601–1,800 cc | 200 | + RM 0.40 per cc above 1,600 |
| 1,801–2,000 cc | 280 | + RM 0.50 per cc above 1,800 |
| 2,001–2,500 cc | 380 | + RM 1.00 per cc above 2,000 |
| 2,501–3,000 cc | 880 | + RM 2.50 per cc above 2,500 |
| ≥ 3,001 cc | 2,130 | + RM 4.50 per cc above 3,000 |
Non-saloon vehicles (SUVs, MPVs, pick-ups, panel vans, sports models) use the same band structure but with lower base rates and a smaller per-cc surcharge, capped at RM 1.60 per cc above 3,000 cc. A 4.0L SUV typically pays a fraction of what a 4.0L saloon pays.
What is the road tax bracket above 3,000cc?
Above 3,000 cc, the saloon-versus-SUV split becomes the single biggest cost driver. Three formulas govern the same engine.
SUV / non-saloon (private): RM 1,640 + RM 1.60 × (cc − 3,000)
Saloon (company-registered): RM 6,010 + RM 13.50 × (cc − 3,000)
Run a 6,498 cc V12 through each line and the gap snaps into focus.
| Registration type | Annual road tax (RM) | Multiple vs private saloon |
|---|---|---|
| Private SUV (non-saloon) | ~7,237 | 0.4x |
| Private saloon | 17,871 | 1.0x (baseline) |
| Company saloon | ~53,233 | ~3.0x |
Same engine. Same horsepower. Three completely different tax bills. This is why luxury SUV variants outsell their saloon siblings in Malaysia by a wide margin.
How is EV road tax calculated in 2026?
JPJ's new kW-based schedule is tiered. A low base rate for the entry band, then incremental charges per 9.99 kW block as motor output climbs.
| Motor output (kW) | Indicative annual tax (RM) | Comparable ICE bracket |
|---|---|---|
| ≤ 100 kW | Under 200 | 1.6L petrol saloon |
| 100.001–210 kW | Low hundreds | 1.8–2.5L saloon |
| 210.001–310 kW | High hundreds | 2.5–3.0L saloon |
| > 310 kW | Approaching 3.0L petrol | Performance EVs (Taycan, Model S Plaid) |
The structure remains gentler than the equivalent ICE schedule, preserving an incentive for electrification while ending the blanket exemption. For an exact figure on your model, check the JPJ calculator or your renewal quote in MyJPJ. The kW value is pulled from the e-Daftar registration record.
Hybrids stay on the ICE schedule. A 2.0L PHEV pays the same road tax as a 2.0L petrol saloon, with no separate hybrid bracket.
How much cheaper is road tax in Sabah and Sarawak?
Road tax in Sabah and Sarawak is roughly 30 to 35% of Peninsular Malaysia rates on engines above 3,000 cc, and noticeably cheaper across all brackets above 1,600 cc. The discount reflects the historically lower road density and infrastructure spend in East Malaysia. The duty-free islands take it further: a flat RM 50 for any engine above 1,000 cc.
| Region | 2.0L saloon | 3.0L saloon | 6.5L V12 saloon |
|---|---|---|---|
| Peninsular Malaysia | RM 380 | RM 2,130 | RM 17,871 |
| Sabah / Sarawak | ~RM 280 | ~RM 760 | ~RM 5,746 |
| Labuan / Langkawi / Pangkor | RM 50 | RM 50 | RM 50 |
The savings are real but the registration must be too. The vehicle has to be genuinely registered to a Sabah, Sarawak or duty-free island address. Switching plates after registration to chase the lower rate is a separate JPJ process and is monitored.
How do I renew road tax via MyJPJ?
The MyJPJ mobile app is the fastest channel. Log in with your MyJPJ ID, select the vehicle, confirm active insurance is detected (the app pulls live data from the eINSURANS database) and pay through FPX, debit/credit card or e-wallet. The digital LKM is issued instantly and has been fully legally valid for enforcement since the 2024 nationwide rollout. No physical sticker required for private vehicles.
| Channel | Turnaround | Output | Notes |
|---|---|---|---|
| MyJPJ app | Instant | Digital LKM | Free, no delivery, valid at roadblocks |
| MyEG | 1–3 days | Printed sticker mailed | RM 6 service fee + courier; useful if you want a physical disc |
| JPJ counter / UTC | Same day | Printed sticker | Walk-in, queue varies; useful for first-time post-PUSPAKOM cases |
| Pos Malaysia | Same day | Printed sticker | Available at most branches; insurance proof required at counter |
| Insurance agent / bank | Same day | Printed sticker | Bundled with policy renewal; service charge varies |
Insurance must be valid for at least the same period as the road tax. JPJ will not process renewal without it. For most private vehicle owners the MyJPJ app handles everything in under three minutes.
What is the late road tax renewal penalty?
The fine is bad. The voided insurance is worse. Under Section 14 of the Road Transport Act 1987, driving with expired road tax is an offence carrying a compound fine of up to RM 3,000 and possible vehicle seizure. The more serious financial risk is that motor insurance is automatically voided the moment road tax expires. Any accident during that lapsed window leaves the owner personally liable for repair costs and third-party claims.
| Lapsed duration | What's required to renew | Extra cost |
|---|---|---|
| 1 day to under 12 months | Reinstate insurance, then renew normally via any channel | None beyond standard road tax |
| 12 months or more | PUSPAKOM B5 inspection + Vehicle Ownership Certificate (VOC) + fresh cover note | ~RM 70 PUSPAKOM fee + insurance reload |
| Caught driving on expired LKM | Settle compound first, then renew | Up to RM 3,000 compound |
Outstanding summonses must be cleared before JPJ will process the renewal. If the vehicle has been off the road for more than 12 months, the PUSPAKOM check is non-negotiable.
How does road tax work for commercial vehicles?
Commercial vehicles (lorries, vans, buses, taxis and goods transporters) are taxed on vehicle weight, permitted load and usage class rather than engine cc alone. Heavier vehicles cause more road wear, so rates climb steeply with gross vehicle weight (GVW). A small panel van may pay RM 90 to RM 200/year. A heavy goods lorry above 7,500 kg can exceed RM 3,000/year.
Company-registered passenger cars are treated more like commercial vehicles and pay the higher company schedule even if used identically to a private car. Government and diplomatic vehicles are exempt under separate provisions. Foreign-registered vehicles temporarily in Malaysia obtain a Permit Khas from JPJ instead of standard road tax.
Why is road tax linked to motor insurance?
Road tax and motor insurance are linked through Section 90 of the Road Transport Act 1987, which makes third-party motor insurance compulsory for any vehicle on a public road. JPJ's renewal system queries the eINSURANS database in real time and blocks any LKM renewal, at counter or online, unless an active policy covering at least the same period is detected. This integration prevents uninsured vehicles from operating, simplifies enforcement (officers only need to check road tax status to know insurance status) and protects accident victims through guaranteed third-party cover. If insurance has lapsed, the owner must reinstate the policy first; the eINSURANS update propagates within minutes to a few hours, after which road tax renewal will go through.
Where does road tax money go?
Road tax revenue does not flow into a dedicated road maintenance fund. It enters the federal Consolidated Fund alongside other government receipts, and is then allocated through the annual budget. The Ministry of Works (KKR) and the Malaysian Highway Authority (LLM) draw on these allocations for federal road maintenance, highway upgrades, bridge construction and traffic system improvements. State governments receive separate allocations for state and local roads. The remainder funds non-road priorities: public transport subsidies, EV adoption incentives, road safety campaigns and JPJ's own enforcement operations. The framing of road tax as a "road maintenance fee" is therefore inaccurate; it is more accurately a vehicle licensing fee that contributes indirectly to transport infrastructure.
Luxury and supercar road tax in Malaysia
Luxury and supercar road tax in Malaysia is dominated by the >3,000 cc saloon bracket, where every additional cubic centimetre adds RM 4.50/year. A V12 supercar can cross RM 17,000/year on a private individual registration, and beyond RM 50,000/year under company name. SUV variants of the same brand sit dramatically lower thanks to the non-saloon schedule. Per-model figures for the most-searched luxury brands sit on dedicated pages below:
- Lamborghini road tax: Urus, Huracán, Aventador, Revuelto annual cost
- Ferrari road tax: V8 and V12 model breakdown
- Porsche road tax: 911, Cayenne, Macan, Panamera, Taycan
- Bentley road tax: Continental GT, Flying Spur, Bentayga
- Rolls-Royce road tax: Phantom, Ghost, Cullinan, Spectre
- BMW road tax: full ICE and EV range
- Mercedes-Benz road tax: saloon, SUV and AMG models
- Land Rover road tax: Range Rover, Defender, Discovery
- Bugatti road tax: Chiron W16 quad-turbo schedule
Road tax versus other vehicle fees
Road tax is the annual licensing fee paid to JPJ. It is distinct from the other recurring or one-off fees a Malaysian vehicle owner faces. Vehicle registration fees are paid once at first registration. Tolls are usage-based payments to highway concessionaires such as PLUS Malaysia. Import duty and excise tax are imposed by the Royal Malaysian Customs Department on imported and locally assembled vehicles. Motor insurance premiums are paid annually to private insurers. Of these, road tax is the smallest line item for an average car but the most punitive for high-displacement vehicles, where the progressive >3,000 cc bracket can dwarf insurance and fuel combined.
Road tax quick reference table
| Vehicle | Engine / Output | Peninsular (RM/year) | Notes |
|---|---|---|---|
| Private saloon | ≤ 1,000 cc | RM 20 | Flat rate |
| Private saloon | 1,401–1,600 cc | RM 90 | Flat rate |
| Private saloon | 2,000 cc | RM 380 | Base + RM 0.50/cc above 1,800 |
| Private saloon | 3,000 cc | RM 2,130 | Threshold for the steep bracket |
| Private saloon | 4,000 cc | RM 6,630 | RM 2,130 + RM 4.50 × 1,000 |
| Private saloon | 6,498 cc (V12) | RM 17,871 | Aventador / Ferrari 812 bracket |
| Private non-saloon (SUV) | 4,000 cc | ~RM 3,234 | RM 1.60/cc above 3,000 |
| Motorcycle | ≤ 250 cc | RM 2 to RM 30 | Flat or progressive |
| EV (from 1 Jan 2026) | ≤ 100 kW | Low entry rate | kW-based schedule replaces exemption |
| EV (from 1 Jan 2026) | > 210 kW | Tiered per 9.99 kW block | Still gentler than equivalent ICE |
| Sabah/Sarawak saloon | 6,498 cc (V12) | ~RM 5,746 | ~32% of Peninsular |
| Labuan/Langkawi/Pangkor | > 1,000 cc | RM 50 | Flat duty-free island rate |
Figures are JPJ private-individual rates. Company registration uses a more expensive schedule. EV figures are indicative pending the final published 2026 kW table.
Official JPJ resources
The authoritative source for road tax rates is JPJ:
- JPJ Malaysia portal: www.jpj.gov.my
- MyJPJ app: available on iOS App Store and Google Play
- MyEG road tax renewal: www.myeg.com.my
- Ministry of Transport: www.mot.gov.my
- JPJ contact centre: 03-8000 8000
- JPJ headquarters: Jalan Padang Tembak, 50510 Kuala Lumpur