Vehicle tax (VED) for electric cars
| When the car was first registered | Yearly 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
- GOV.UK: Vehicle tax rate tables
- GOV.UK: Electric Vehicle Excise Duty (eVED)
- GOV.UK: Company car tax rates
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 Spotted something out of date?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.