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Pay-per-mile tax for electric cars starts in April 2028: what eVED will cost you

From 1 April 2028, electric car drivers will pay 3p for every mile they drive, on top of normal car tax. Plug-in hybrids will pay 1.5p a mile. Here is what is confirmed and what it means for your costs.

What has been confirmed

HM Revenue & Customs published the details of Electric Vehicle Excise Duty on 13 July 2026, after the charge was first announced in the Autumn Budget 2025. The policy paper was last updated on 30 September 2026.

eVED is a mileage charge for cars that pay little or no fuel duty. It sits alongside normal Vehicle Excise Duty (car tax), which electric cars already pay. DVLA will run it with car tax.

VehicleRate from 1 April 2028
Battery electric car3p per mile
Hydrogen fuel cell car3p per mile
Plug-in hybrid1.5p per mile

Plug-in hybrids pay half the rate because they also pay fuel duty when they use petrol or diesel. From 2029 to 2030 the rates rise each year in line with inflation (CPI).

What it will cost at your mileage

These figures use the 2028 rates. They are in addition to your normal car tax.

Miles a yearElectric carPlug-in hybrid
5,000£150£75
8,000£240£120
10,000£300£150
12,000£360£180
15,000£450£225

To compare running costs with a petrol car, use our EV charging cost calculator and fuel cost calculator.

How mileage will be measured

There is no requirement for a tracker in the car. Instead, drivers give an odometer reading and estimate how far they will drive in the coming year. You can pay the charge upfront or spread it across the year.

At the end of the period, a new odometer reading is used to settle up. The government says it will check the mileage people give against MOT records where a car already has an MOT. That is one more reason the mileage on your MOT history matters. You can see every recorded reading with our free mileage check.

What is still being decided

HMRC says special arrangements for leasing and rental companies are still being worked out. Full details of how payments and reconciliation will work in practice have not yet been published. We will update this article as more is confirmed.

Sources

Facts checked against the sources above on 19 October 2026. Spotted something out of date? Tell us.

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