Road tax in Malaysia, also known as Motor Vehicle Licence (LKM), is a mandatory charge imposed on all vehicle owners to legally operate their vehicles on public roads. The road tax rate varies based on several factors including vehicle type, engine capacity (cc), fuel type, and region of registration. Beginning in 2026, electric vehicles (EVs) will be taxed according to their motor output (kW) instead of engine capacity. Although many assume that road tax funds are used directly for road maintenance, in reality, the money collected is channelled into the government’s consolidated revenue account rather than a dedicated road maintenance fund.
The Road Transport Department (JPJ) enforces road tax regulations under the Road Transport Act 1987 (Act 333). This legislation governs vehicle registration, licensing, inspection, and transport law enforcement throughout Malaysia. JPJ is responsible for issuing road tax licences, collecting payments, and penalising vehicle owners who fail to renew their tax on time. While road tax revenue is not specifically earmarked for roads, it contributes indirectly to Malaysia’s infrastructure development, including highway upgrades, bridge construction, and transport system improvements through general government spending.
A Complete Guide to Road Tax in Malaysia
What is Road Tax in Malaysia?
Road tax in Malaysia is legally defined under the Road Transport Act 1987 (Act 333) as a form of licensing fee imposed on motor vehicles that use public roads. It serves as official authorisation for a vehicle to be operated legally within Malaysia. The Road Transport Department (JPJ) is the primary authority responsible for enforcing this regulation, ensuring that every registered vehicle holds a valid Motor Vehicle Licence (LKM). Without a valid LKM, a vehicle is considered unlicensed and may be subject to fines, seizure, or other legal penalties under Malaysian transport law.
The main purpose of road tax is to contribute to the government’s revenue for maintaining road infrastructure and supporting public transport development. Although road tax funds are not ring-fenced solely for road repairs, they form part of the federal budget used for infrastructure improvements, including highways, bridges, and transport facilities. All vehicle owners, whether private individuals or commercial operators, are required to pay road tax annually. The rate depends on factors such as vehicle type, engine capacity, usage category, and region, ensuring that heavier or higher-powered vehicles contribute more toward public infrastructure costs.
Legal Framework – Road Transport Act 1987
The Road Transport Act 1987 (Act 333) forms the legal framework governing vehicle ownership, registration, and road tax collection in Malaysia. It outlines the rules that every vehicle owner must follow to operate a vehicle lawfully on public roads. The Act empowers the Road Transport Department (JPJ) to issue, regulate, and enforce Motor Vehicle Licences (LKM), ensuring that vehicles meet safety and compliance standards. Through this legislation, JPJ is also authorised to inspect vehicles, maintain registration records, and take enforcement actions against unlicensed vehicles or road users who breach the law.
Several key sections within the Act specifically regulate road tax and vehicle licensing. Section 15 mandates that every motor vehicle using public roads must be licensed under a valid LKM, while Section 17 details the duration and renewal procedures for the licence. Section 20 prohibits driving unlicensed vehicles, and Section 23 outlines offences and penalties for non-compliance, including fines, suspension, or vehicle seizure. In addition, the Act provides for penalties against falsifying registration documents or displaying expired licences. Compliance with these provisions ensures that Malaysia’s vehicle system remains orderly, safe, and financially contributive to national transport infrastructure.
How Road Tax Works in Malaysia
Road tax in Malaysia applies to all registered motor vehicles that operate on public roads, as mandated by the Road Transport Act 1987. This includes private cars, motorcycles, vans, buses, and commercial vehicles such as lorries and taxis. Each vehicle owner must pay the tax annually to the Road Transport Department (JPJ) before the existing licence expires. Vehicles that are not used on public roads, such as off-road machinery or those kept in private compounds, are generally exempted, provided they are declared as such to JPJ. Failure to renew road tax on time may lead to penalties, including fines or restrictions on insurance renewal.
The road tax amount is calculated based on several key factors, including vehicle type, engine capacity (cc), fuel type, and region of registration (Peninsular Malaysia, Sabah, or Sarawak). Private vehicles typically fall under two categories, private individual and private company, while commercial vehicles such as taxis, buses, and goods transporters are taxed at different rates due to higher road usage. Vehicle owners can choose between six-month or twelve-month validity periods, with the one-year term being more cost-effective. This system ensures fairness, as vehicles with larger engines or heavier usage contribute more to the country’s overall transport and infrastructure maintenance costs.
Road Tax Rates in Malaysia (2025 Updated)
Here’s a refined breakdown of the 2025 road tax rates in Malaysia by vehicle category, along with an explanation of how they are calculated and why they differ:
Cars (by Engine Capacity)
For internal combustion engine cars, the road tax is pegged to engine displacement (cc). Up to about 1,600 cc, fixed flat rates apply (e.g. RM20 for ≤ 1,000 cc, RM55 for 1,001–1,200 cc, RM70 for 1,201–1,400 cc, RM90 for 1,401–1,600 cc). Beyond 1,600 cc, progressive rates kick in — a base rate plus additional charge per cc over the threshold. Cars classified as non-saloon (SUVs, MPVs, sports models) incur higher multipliers compared to saloon models. Also, vehicles registered under a company (commercial ownership) tend to face a higher rate than private ownership.
Motorcycles
Motorcycle road tax is simpler: it is also based on engine capacity (cc) but with steeper jumps at lower thresholds. The minimum tax is modest (around RM2) for the smallest cc, and increases for larger engine sizes. Because motorcycles impose less wear on infrastructure, their rate scale is far lighter than that of cars.
Commercial Vehicles (Lorries, Vans, Buses)
Commercial vehicles are taxed not just by engine capacity but also by vehicle class, permitted load, weight, and usage intensity. The formula often factors in how much stress the vehicle places on road infrastructure. Vans, lorries, and buses thus often pay higher effective rates than private passenger cars of similar engine size. Company-owned passenger vehicles are also treated more like commercial vehicles and taxed accordingly.
Electric & Hybrid Vehicles
As of 2025, electric vehicles (EVs) are exempt from road tax until 31 December 2025. From 1 January 2026, EV tax will be based on motor output (kW) rather than engine capacity. The structure is tiered: e.g. up to 100 kW, a relatively low base rate; then incremental increases per 9.99 kW block for higher power bands (100.001–210 kW, 210.001–310 kW, etc.). For hybrids (if taxed under the ICE regime), they generally follow the engine-displacement method but may receive incentives or discounts.
Why Rates Differ Across Types
- Wear and tear & road stress – Heavier commercial vehicles cause more damage to roads, so their tax rates are higher to reflect their infrastructure burden.
- Engine size vs power output – Internal combustion vehicles vary in displacement, so cc is a proxy for their capacity and emissions; for EVs, power (kW) is more appropriate.
- Usage category and ownership – Vehicles used commercially or registered to companies often see higher rates to reflect their higher usage and revenue-earning potential.
- Policy incentives – EVs are subsidised via tax exemption now and a favourable structure later, to encourage adoption and reduce emissions.
How to Renew Your Road Tax in Malaysia
Physical Renewal at JPJ or POS Malaysia
To renew your road tax physically, you can visit any JPJ branch, UTC, or POS Malaysia outlet. The required documents include your original MyKad, vehicle registration card (VOC/eVOC), and a valid insurance cover note for the vehicle. Make sure your insurance has at least one-year coverage, as the road tax cannot exceed your insurance validity period. Payment can be made by cash, debit card, or credit card, depending on the location. Some POS Malaysia outlets also allow Touch ’n Go eWallet payments. After payment, you will receive the printed road tax disc (LKM), which must be displayed on your vehicle windscreen or plate holder.
Online Renewal via MyEG
The MyEG portal (www.myeg.com.my) allows users to renew their road tax conveniently online without visiting any counter. To renew, log in or register a MyEG account, select JPJ → Road Tax Renewal, and enter your vehicle registration number. The system will automatically verify your insurance details and calculate the amount due. You can make payment via online banking, debit/credit card, or e-wallet. Once completed, MyEG will deliver your road tax disc to your registered address within 1–5 working days, depending on location.
The main advantage of online renewal is convenience — it saves time, eliminates queues, and operates 24/7. However, the disadvantage is the additional service and delivery fee, which makes it slightly more expensive than over-the-counter renewal. For those who need the disc immediately or live in remote areas, in-person renewal at JPJ or POS Malaysia may still be the better option.
Road Tax and Insurance – Why They’re Linked
In Malaysia, road tax and vehicle insurance are legally interconnected under the Road Transport Act 1987. A valid motor insurance policy is a mandatory requirement before you can renew your Motor Vehicle Licence (LKM). This ensures that every vehicle operating on public roads is insured against third-party risks, protecting other motorists and pedestrians in the event of accidents. The insurance period must cover at least the same duration as the road tax — for example, a one-year insurance policy is needed for a one-year road tax renewal. Without valid insurance, JPJ cannot process your renewal, whether at counters or through online platforms like MyEG or POS Malaysia.
The JPJ system is integrated with insurance provider databases through the eINSURANS platform, allowing real-time verification of active policies. When you attempt to renew your road tax, the JPJ system automatically checks if your insurance is valid and matches your vehicle registration number. If your insurance has lapsed or expired, the system will block the renewal process until you purchase or renew your policy. This digital link between JPJ and insurers helps prevent fraudulent renewals and ensures only insured vehicles are allowed on Malaysian roads, maintaining public safety and accountability.
Penalties for Expired or Unpaid Road Tax
Driving with an expired or unpaid road tax is a serious offence under the Road Transport Act 1987 and can lead to strict penalties. The JPJ and Royal Malaysia Police (PDRM) regularly conduct roadblocks and enforcement operations to identify vehicles operating without valid road tax. Offenders may face a compound fine of up to RM3,000 under Section 14(4) of the Act. In more severe cases, authorities may seize or detain the vehicle until proof of renewal is provided. Insurance coverage may also be rendered invalid if an accident occurs while the road tax has expired, leaving the vehicle owner personally liable for damages or injuries caused.
If your road tax has already expired, you must renew it immediately before using the vehicle again on public roads. For expiry periods of less than one year, the process is straightforward — you can renew through JPJ, POS Malaysia, or MyEG once your insurance is valid. However, if the expiry exceeds one year, you may need to reinspect your vehicle at PUSPAKOM to verify roadworthiness before renewal. Any outstanding summonses or compounds must also be settled first. Reinstating a long-expired road tax may require additional documentation, such as the Vehicle Ownership Certificate (VOC) and a new insurance cover note, ensuring compliance before the vehicle can be legally driven again.
Where Road Tax Money Goes
Contrary to common belief, the road tax collected in Malaysia does not go directly or exclusively to repairing or maintaining roads. Instead, all payments made to JPJ and the Ministry of Transport (MOT) are channelled into the federal government’s Consolidated Fund, which is used to finance various public expenditures. From this pool, a portion is allocated to infrastructure projects, including road maintenance, highway upgrades, bridge repairs, and traffic system improvements. The Ministry of Works (KKR) and the Malaysian Highway Authority (LLM) are among the main agencies responsible for executing these infrastructure programs using the allocated funds. Thus, road tax revenue indirectly supports the upkeep and expansion of Malaysia’s transportation network, rather than serving as a dedicated “road repair fund.”
The distribution of road tax revenue between the federal and state governments is determined by national budgeting priorities. Most road-related expenditure, particularly for federal roads and expressways, falls under the federal budget, while state governments receive allocations for state and local road maintenance. Beyond physical infrastructure, road tax revenue also contributes to sustainable transport financing, supporting initiatives such as public transport improvements, electric vehicle adoption incentives, and traffic safety campaigns. This integrated approach helps Malaysia balance the costs of maintaining road networks while promoting a more sustainable and modern transport ecosystem.
Road Tax for Electric & Hybrid Vehicles
As part of Malaysia’s green mobility initiative, the government has introduced various incentives and exemptions for electric vehicles (EVs) to encourage cleaner and more sustainable transportation. Under the current policy, EVs are fully exempted from road tax until 31 December 2025, giving owners a significant cost advantage compared to traditional fuel-powered vehicles. This exemption applies to both battery electric vehicles (BEVs) and plug-in hybrids (PHEVs) that are registered with JPJ. Beginning 1 January 2026, a new road tax structure based on motor output (kilowatts) will replace the traditional engine capacity (cc) system. This new system introduces progressive rates — lower-powered EVs will pay minimal tax, while high-performance EVs will pay more in line with their output.
These measures align with Malaysia’s Low Carbon Mobility Blueprint (LCMB) 2021–2030, which aims to reduce vehicle emissions and promote energy-efficient transport. Compared to petrol or diesel vehicles, EV road tax rates will be significantly lower, reflecting the government’s push toward renewable energy use and reduced carbon dependency. Hybrid vehicles, however, generally follow the conventional road tax formula based on engine displacement unless they qualify for specific manufacturer incentives. This transition toward a performance-based EV tax model not only supports environmental goals but also helps standardise Malaysia’s taxation framework with global practices, making EV ownership more attractive and sustainable in the long term.
Special Road Tax Categories
Certain types of vehicles in Malaysia fall under special road tax categories due to their ownership, function, or registration status. Commercial vehicles such as lorries, vans, taxis, and buses are subject to a different rate structure from private cars. Their road tax is calculated based on vehicle weight, permitted load, and usage type, rather than just engine capacity. This is because these vehicles are used for business or public transport purposes and therefore cause more wear to road infrastructure. Additionally, company-registered vehicles generally pay higher rates compared to those owned by individuals, reflecting their commercial usage and contribution to revenue generation.
Government and diplomatic vehicles are treated differently under Malaysian transport law. Official government vehicles are typically exempted from road tax, as they are state-owned and serve public functions. Similarly, vehicles belonging to foreign embassies or diplomatic missions enjoy exemptions or special privileges under the Vienna Convention on Diplomatic Relations, facilitated through the Ministry of Foreign Affairs (Wisma Putra). For foreign-registered or temporarily imported vehicles, such as those brought in by tourists or expatriates, a temporary road tax (Permit Khas) must be obtained from JPJ. This permit specifies the validity period and conditions for operating the vehicle within Malaysia, ensuring all vehicles on Malaysian roads remain traceable, insured, and compliant with local regulations.
Required Documents and Verification Process to Renew Road Tax
To renew or verify your road tax (LKM) in Malaysia, several key documents are required. These include your MyKad or company registration details, the Vehicle Ownership Certificate (VOC or eVOC), and a valid motor insurance cover note. Upon successful renewal, the road tax sticker (LKM disc) will display essential information such as the vehicle registration number, expiry date, and licence category. This sticker must be affixed on the front windscreen (for cars) or rear plate area (for motorcycles) and kept clearly visible at all times. The information printed on the sticker acts as physical proof that your vehicle has a valid licence under the Road Transport Act 1987.
Vehicle owners can perform online verification of their road tax validity through the JPJ eServices portal or MyEG. These platforms allow users to check the status, expiry date, and renewal history by entering the vehicle registration number. If your road tax sticker is lost, faded, or damaged, you must apply for a replacement at any JPJ branch. The process requires submission of your identification card, VOC, and police report (if lost). Once verified, JPJ will issue a new sticker with the same validity period as the original. Maintaining proper documentation and ensuring your sticker remains legible is important for compliance, especially during roadblocks or inspections by JPJ or PDRM officers.
Digital Transformation – e-Road Tax & MyJPJ App
The introduction of the digital road tax (e-LKM) marks a major step in Malaysia’s digitalisation of vehicle licensing. Announced by the Ministry of Transport (MOT) in 2023, the e-LKM allows vehicle owners to display their road tax digitally instead of using the traditional paper sticker. This initiative aims to streamline compliance, reduce physical printing costs, and improve enforcement efficiency. The e-LKM is stored electronically in the JPJ central database, ensuring that all valid road tax records can be verified in real time by enforcement officers. Vehicle owners no longer need to worry about faded or damaged stickers, as the digital version remains securely accessible online.
To access the e-LKM, users must download the MyJPJ mobile app, available on both Android and iOS platforms. After logging in using their MyJPJ ID (linked to JPJ records), users can view and display their digital road tax and driving licence directly within the app. The app provides instant verification for enforcement officers, making physical stickers optional for private vehicle owners. The digital road tax carries full legal validity, as confirmed by MOT and JPJ, meaning it can be shown electronically during roadblocks or inspections. Among the key benefits are convenience, sustainability, and reduced administrative costs. However, commercial vehicles and foreign-registered vehicles must still display physical stickers until digital adoption is fully expanded nationwide.
Common Issues & FAQs
Can I drive with an expired road tax?
No. Driving with an expired road tax is an offence under the Road Transport Act 1987. If caught, you may face a compound fine of up to RM3,000, and your vehicle may be seized or detained by authorities. Moreover, if an accident occurs while your road tax has expired, your insurance coverage becomes invalid, leaving you personally liable for damages. It is therefore essential to renew your road tax before the expiry date or refrain from driving until renewal is complete.
How to renew if insurance has expired?
When your vehicle insurance has expired, you must renew your insurance first before attempting to renew your road tax (LKM). This is because JPJ’s system is integrated with the eINSURANS database, which automatically verifies insurance validity in real time. Without a valid insurance record, the system will block any road tax renewal attempt, whether at JPJ counters, POS Malaysia outlets, or online platforms such as MyEG and JPJ eServices.
You can renew your insurance directly through your insurance provider’s official website, mobile app, or registered agent. Alternatively, licensed online comparison platforms such as Bjak, PolicyStreet, or Etiqa Online can also be used to purchase or renew motor insurance. Once your new policy is issued, it typically takes a few minutes to a few hours for the details to be updated in the eINSURANS system. After that, you can proceed to renew your road tax as usual. This digital integration ensures that all vehicles on Malaysian roads remain both insured and legally licensed.
Can a foreigner renew Malaysian road tax?
Yes, foreign vehicle owners can renew their Malaysian road tax if their vehicle is registered locally and has valid insurance. However, if the vehicle is foreign-registered and temporarily imported, the owner must apply for a Permit Khas (temporary road permit) from JPJ instead. This permit specifies the permitted duration and conditions for use in Malaysia. For long-term stays, the vehicle must be properly registered with JPJ under local ownership before standard road tax renewal is allowed.
What happens if I lose my sticker?
If your road tax sticker (LKM) is lost, damaged, or faded, you must visit the nearest JPJ branch to request a replacement. Bring along your MyKad, Vehicle Ownership Certificate (VOC/eVOC), and a police report if the sticker was lost. JPJ will verify your record and issue a new sticker with the same validity period as your existing one. It is advisable not to drive without displaying a valid sticker unless you are already using the digital e-LKM via the MyJPJ app.
Is online renewal safe and reliable?
Yes. Online road tax renewal through official portals such as MyEG or JPJ eServices is safe, provided you use the official websites or verified apps. These platforms are directly linked to JPJ’s system and use secure payment gateways such as FPX or credit card processing. Your digital records are automatically updated after payment, and MyEG will deliver the physical sticker to your registered address. Always avoid third-party agents or unofficial websites that request personal or banking details outside the official portals.
Road Tax vs Other Vehicle-Related Charges
Many Malaysian vehicle owners often confuse road tax with other types of vehicle-related fees such as registration charges, toll payments, and import duties, but each serves a distinct purpose. Road tax (LKM) is a recurring annual licensing fee paid to the Road Transport Department (JPJ), granting legal permission to operate a vehicle on public roads. Vehicle registration fees, on the other hand, are one-time charges paid when a new or imported vehicle is first registered with JPJ. Tolls are usage-based payments collected by highway concessionaires such as PLUS Malaysia for maintaining and managing expressways, while import duties and excise taxes are imposed by the Royal Malaysian Customs Department to regulate imported vehicle prices and encourage local assembly.
Despite the existence of these other fees, road tax remains an essential mechanism for maintaining Malaysia’s overall transport system. It provides a steady stream of revenue to the federal government, which is then channelled into the construction, maintenance, and upgrading of roads and public transport facilities. While tolls and import duties are specific to certain routes or vehicles, road tax applies universally to all registered vehicles, ensuring that every road user contributes fairly to the upkeep of the national infrastructure. This balanced approach allows Malaysia to sustain road quality, expand its highway network, and support initiatives such as public transportation upgrades and green mobility development.
Conclusion – Keeping Your Road Tax Up to Date
Maintaining a valid road tax (LKM) is not only a legal obligation but also a reflection of your role as a responsible vehicle owner in Malaysia. Keeping your road tax up to date ensures that your vehicle remains insured, roadworthy, and compliant with national transport regulations. It also helps avoid unnecessary fines, penalties, or enforcement actions by the Road Transport Department (JPJ). Regular renewal supports the continued upkeep of Malaysia’s roads, highways, and public transport infrastructure, which in turn benefits all motorists through safer and smoother travel experiences.
As Malaysia embraces digitalisation, vehicle owners are encouraged to use official platforms such as MyEG, JPJ eServices, and the MyJPJ app for fast, secure, and convenient renewal. These digital options reduce paperwork, enhance efficiency, and ensure accurate record-keeping in the JPJ system. Paying your road tax on time is more than just fulfilling a requirement — it represents a form of civic responsibility that contributes directly to the nation’s transport development and sustainability. By staying compliant, you play a small but important part in ensuring that Malaysia’s transport network remains safe, modern, and reliable for all road users.
Appendix: Quick Reference
2025 Road Tax Rate Table
Below is a general overview of the 2025 road tax rates for reference. The actual rate may vary depending on vehicle type, engine capacity, and region (Peninsular Malaysia, Sabah, or Sarawak):
| Vehicle Type | Engine Capacity / Output | Estimated Road Tax (RM) | Notes |
|---|---|---|---|
| Private Car (≤ 1,000 cc) | Up to 1,000 cc | RM20 | Flat rate |
| Private Car (1,001 – 1,600 cc) | – | RM55 – RM90 | Progressive |
| Private Car (1,601 – 2,000 cc) | – | RM200 – RM380 | Saloon vs. non-saloon differs |
| Private Car (2,001 – 3,000 cc) | – | RM760 – RM2,130 | Based on incremental cc |
| Motorcycle | Up to 250 cc | RM2 – RM30 | Flat or progressive |
| Commercial Vehicle | Based on weight/load | RM90 – RM3,000 + | Depends on class (van, lorry, bus) |
| Electric Vehicle (EV) | Up to 100 kW | Exempted until 2025 | From 2026 onwards: kW-based |
| Hybrid Vehicle | Follows ICE rate | Varies | Some may receive discounts |
Note: EVs remain exempt from road tax until 31 December 2025. The new kW-based rate system begins in 2026.
JPJ Offices & Contact Info
For in-person renewals, document verification, or inquiries, visit any JPJ State Office or Urban Transformation Centre (UTC).
- JPJ Headquarters: Jalan Padang Tembak, 50510 Kuala Lumpur
- Operating Hours: Monday – Friday, 8:00 a.m. – 5:00 p.m.
- Contact Centre: 03-8000 8000
- Email: aduan@jpj.gov.my
You can also find the nearest branch using the JPJ directory available on their official portal.
Official Resources
- JPJ Malaysia Official Portal: https://www.jpj.gov.my
- MyEG Road Tax Renewal Portal: https://www.myeg.com.my
- Ministry of Transport (MOT) Malaysia: https://www.mot.gov.my
These official channels provide the latest updates on road tax rates, digital renewal (e-LKM), and policy changes, ensuring your information is accurate, secure, and up to date.