VehicleFile

Electric car tax in 2026

Electric cars were free to tax until April 2025. Now they pay vehicle tax like other cars, and a pay-per-mile charge is planned. Here is what an EV owner pays.

Vehicle tax (VED) for electric cars

When the car was first registeredYearly tax
From 1 April 2025 (first year)£10
From 1 April 2017 (second year on)£200
1 March 2001 to 31 March 2017£20

Paying by 12 monthly Direct Debits adds 5%. Work out any car's tax with the car tax calculator.

The expensive car supplement

Cars with a list price over £40,000 pay an extra £440 a year from the second to the sixth year of tax. For zero-emission cars registered from 1 April 2026, the threshold rose to £50,000, so fewer electric cars are caught. The list price includes options, so a well-specified car can go over the limit.

The pay-per-mile charge from 2028

The government plans an electric vehicle excise duty (eVED) from April 2028: 3p a mile for electric cars and 1.5p a mile for plug-in hybrids, on top of VED. A driver doing 7,000 miles a year would pay about £210 a year. Even with it, home-charged EVs are expected to stay much cheaper to run per mile than petrol cars. See petrol vs electric running costs.

Company car tax

Benefit-in-kind tax on an electric company car is 4% of its list price in 2026/27, rising to 5% in 2027/28. On a £40,000 car, a basic-rate taxpayer pays about £27 a month. Check yours with the company car tax calculator, and see how salary sacrifice can cut the cost further.

Other charges

  • London Congestion Charge: electric cars now pay, with 25% off on Auto Pay. See the Congestion Charge guide.
  • ULEZ and clean air zones: electric cars are exempt.

Sources

Checked against official sources on 15 October 2026. Rules and prices change, so confirm anything important on GOV.UK. Spotted something out of date? Tell us.

Questions

Do electric cars pay road tax in 2026?

Yes. £10 in the first year for a new car, then £200 a year.

Do electric cars pay the expensive car supplement?

Yes, if the list price is over the threshold: £40,000, or £50,000 for electric cars registered from April 2026. It adds £440 a year for 5 years.

What is the electric car pay-per-mile tax?

A planned 3p-a-mile electric vehicle excise duty from April 2028, or 1.5p for plug-in hybrids.

How much is company car tax on an electric car?

4% benefit-in-kind in 2026/27 and 5% in 2027/28.

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