Electric Car Road Tax 2026: What UK EV Owners Now Pay

For years, one of the biggest selling points of electric cars in the UK was zero road tax. That changed on 1 April 2025. Electric vehicles now pay Vehicle Excise Duty (VED) for the first time — and the costs are higher than many buyers expected.

The standard annual rate is £190 per year. But if your EV had a list price over £40,000 when new, you’ll also pay the Expensive Car Supplement — an extra £410 per year for five years. That catches the majority of new EVs sold in the UK, including the Tesla Model 3, Kia EV6, Hyundai Ioniq 5, and BMW iX1.

This article breaks down exactly what you’ll pay, how it compares to petrol and diesel, what it means for used EV buyers, and what’s coming next with the proposed pay-per-mile system in 2028.

1. The Change: EVs Now Pay Standard Rate VED

From 1 April 2025, all zero-emission vehicles registered in the UK are subject to Vehicle Excise Duty at the standard annual rate of £190 per year. This applies to battery electric vehicles (BEVs) and hydrogen fuel cell cars alike.

Before this date, EVs were completely exempt from road tax — a benefit that had been in place since 2001. The government removed the exemption as part of the Autumn Statement 2022, arguing that as EV adoption grows, all motorists need to contribute to road funding.

The £190 rate is the same flat rate that petrol and diesel cars registered after 1 April 2017 pay from their second year onwards. In practical terms, EV owners now pay identical annual VED to most combustion engine cars.

2. First-Year Rate for New EVs: Just £10

New electric cars registered from 1 April 2025 onwards benefit from a reduced first-year VED rate of £10. This is the lowest first-year band in the VED system, reflecting EVs’ zero tailpipe CO2 emissions.

From year two onwards, the car moves to the standard annual rate of £190 (plus the Expensive Car Supplement if applicable).

For comparison, a new petrol car emitting 131–150 g/km CO2 pays £220 in first-year VED. A high-emission petrol or diesel car (over 255 g/km) pays £2,745 in its first year. So new EVs still have a significant first-year advantage.

3. The Expensive Car Supplement Trap

This is where the real cost catches people out. Any car with a list price (P11D value) over £40,000 when new attracts the Expensive Car Supplement — an additional £410 per year on top of the standard £190 rate, payable for five years (years 2 to 6 of the car’s life).

That means you pay £600 per year total during those five years.

The problem for EV buyers is that the £40,000 threshold was set when most cars at that price were premium models. Today, the average new EV in the UK has a list price well above £40,000. Here are some common examples:

4. Total VED Cost by Scenario

Here’s what you’ll pay over the first six years of ownership depending on the car’s price and type:

5. How EV Road Tax Compares to Petrol and Diesel

From year two onwards, the standard annual VED rate is identical for EVs, petrol, and diesel cars registered after 1 April 2017: £190 per year.

The only differences are:

• First-year rate: EVs pay £10 vs £220+ for most petrol/diesel cars
• Expensive Car Supplement: Identical rules apply — £410/year extra for five years on cars over £40K list price
• Pre-April 2017 cars: Older cars use CO2-based bands — EVs registered before April 2017 were £0 and remain £0 until the rules changed in April 2025

The bottom line: VED is no longer a meaningful differentiator between EVs and combustion cars. The savings from going electric now come almost entirely from cheaper fuel (electricity vs petrol) and lower maintenance costs.

6. Used EV Tax: What Second-Hand Buyers Pay

If you’re buying a used electric car, here’s what you need to know:

• No first-year rate discount. The £10 first-year rate only applies when the car is first registered. As a used buyer, you pay the standard £190/year from day one.
• Expensive Car Supplement still applies. If the car’s original list price was over £40,000 and it’s still within years 2–6 of its life, you’ll pay £600/year. This is based on the original P11D value, not the price you pay for the used car.
• After year 6, the supplement drops off. Once the car is more than six years old (from first registration), you pay only the standard £190/year regardless of its original price.

7. What About Hybrids? PHEV and Mild Hybrid Rates

Plug-in hybrids (PHEVs) and mild hybrids are not classified as zero-emission vehicles. They have always paid VED based on their CO2 emissions, and this hasn’t changed.

PHEVs with very low official CO2 figures (1–50 g/km) benefit from low first-year VED — as little as £10. But from year two, they pay the same £190 standard rate as everything else. And most popular PHEVs (Volvo XC60, BMW X1, Mercedes GLC) have list prices well over £40,000, so the Expensive Car Supplement applies too.

8. The Future: Pay-Per-Mile eVED from April 2028

The current flat-rate VED system for EVs is widely seen as a temporary measure. The government has confirmed plans to introduce a pay-per-mile road pricing system for electric vehicles, referred to as eVED, from April 2028.

Under the proposed system:

• EVs would pay a per-mile charge instead of (or in addition to) the annual flat rate
• Mileage would be tracked via telematics or smart meters at charging points
• Rates could vary by vehicle weight, time of day, or road type
• A public consultation is expected in late 2026 or early 2027

The exact per-mile rate hasn’t been confirmed. Industry estimates range from 2p to 6p per mile, which would mean a driver covering 10,000 miles per year would pay £200 to £600 annually — potentially more than the current £190 flat rate.

For now, the £190 flat rate is locked in. But if you’re a high-mileage driver considering an EV, it’s worth keeping an eye on the eVED consultation.

Worked Example: Total VED Cost Over 6 Years

James from Birmingham buys a brand-new Tesla Model 3 Standard Range Plus in June 2025. The list price (P11D value) is £42,490.

If James had chosen an MG4 SE Long Range at £29,495 (under the £40K threshold), his total VED over six years would be just £960 — a saving of £2,050 in road tax alone.

Final Thoughts

The era of free road tax for electric cars is over. At £190 per year, the standard rate is manageable — but the Expensive Car Supplement adds £2,050 over five years for any EV with a list price over £40,000, and that catches the majority of popular models.

For used EV buyers, the key is checking the car’s original list price and how old it is from first registration. Buy a car that’s past its sixth birthday and the supplement disappears entirely.

And with pay-per-mile eVED on the horizon for 2028, the running cost picture for EVs is still evolving. Factor road tax into your total cost of ownership calculations alongside electricity costs, insurance, and depreciation.

VED rates quoted are for the 2025/26 tax year. Rates are subject to change in future budgets. For the latest rates, check GOV.UK vehicle tax rate tables.

Related reading: Best Used Electric Cars 2026 | Public EV Charging UK Guide