Electric Vehicle Road Tax 2026: What You’ll Pay

Introduction: The End of Free Road Tax for EVs

From 1 April 2026, the way electric vehicle (EV) owners pay road tax in the UK has changed. The era of zero road tax for electric cars is over, and new rules now apply to all EVs registered from 1 April 2025 onwards.

If you’re asking “how much is road tax on electric cars?”, the answer depends on your vehicle’s registration date, list price, and whether it qualifies for the Expensive Car Supplement.

This guide breaks down the 2026 road tax changes for EVs, what they mean for current and future owners, and how they fit into the broader cost of EV ownership. For a deeper dive into charging costs, see our article: Are Home EV Chargers Worth It: Cost Breakdown.

How Much Is Road Tax on Electric Cars in 2026?

1. Standard Annual Rate: £200

For most EVs registered after 1 April 2017, the standard annual Vehicle Excise Duty (VED) rate is now £200—the same as petrol and diesel cars. This applies from the second year of registration onwards.

• First-year rate (2026/27): £10 for new zero-emission cars.
• From year two: £200 per year.

Example: If you buy a new EV in May 2026, you’ll pay £10 for the first year, then £200 annually from 2027.

2. Expensive Car Supplement: £440 (for EVs over £50,000)

Previously, EVs priced over £40,000 faced an additional £425 annual supplement for five years. From 1 April 2026, this threshold rises to £50,000 for zero-emission vehicles—meaning many mid-range EVs (e.g., Tesla Model 3, Hyundai Ioniq 5) avoid this extra charge.

• Threshold: £50,000 (up from £40,000).
• Annual supplement: £440 (up from £425).
• Duration: Years 2–6 of registration.

Example: A £45,000 EV registered in 2026 pays £200 standard rate + £0 supplement. A £55,000 EV pays £200 + £440 = £640/year for five years.

3. Older EVs (Pre-April 2017): £20/Year

Cars registered between 1 March 2001 and 31 March 2017 follow a different system. For 2026/27, Band A EVs (0g/km CO₂) pay £20/year—a significant saving compared to newer models.

4. Company Car Tax (BiK) for EVs: 4% in 2026/27

If your EV is a company car, the Benefit-in-Kind (BiK) rate rises from 3% to 4% on 6 April 2026. This affects how much tax you pay on the car’s list price as a benefit.

Example: A £40,000 EV with a 4% BiK rate gives a taxable benefit of £1,600 per year. A 20% taxpayer pays £320 per year on that benefit (about £26.67 per month). A 40% taxpayer pays £640 per year.

Which Vehicles Are Affected?

Key Dates for EV Road Tax in 2026

What This Means for EV Owners and Buyers

1. Higher Running Costs—but Still Cheaper Than Petrol/Diesel

While EVs now pay road tax, they remain cheaper to run than combustion engines. For example:

• Fuel savings: Electricity costs ~4p/mile vs. ~12p/mile for petrol.
• Maintenance: Fewer moving parts mean lower servicing costs.
• Incentives: Grants for home chargers (e.g., OZEV scheme) and local exemptions (e.g. London ULEZ) still apply.

Installing a home EV charger can cut charging costs by up to 50% compared to public networks. For a full cost analysis, read Are Home EV Chargers Worth It: Cost Breakdown.

2. Impact on EV Affordability

The £200 standard rate adds ~£17/month to ownership costs. However, the £50,000 supplement threshold is a win for mid-range EV buyers, who could save £2,125 over five years (£425 x 5) compared to the old £40,000 rule.

Example: A £45,000 Kia EV6 avoids the supplement entirely, while a £55,000 Audi Q8 e-tron pays £440/year extra for five years.

3. Future Changes: eVED (Pay-Per-Mile Tax) from 2028

The government plans to introduce Electric Vehicle Excise Duty (eVED), a mileage-based charge for EV and plug-in hybrid cars, from April 2028. The current proposal is 3p per mile for fully electric cars and 1.5p per mile for plug-in hybrids.

For example, 8,000 miles at 3p per mile would equal £240 per year. Final implementation details may still change through the government process.

How to Check Your EV’s Road Tax?

1. Use the DVLA website: Enter your registration number here.
2. Check your V5C logbook: Your tax band is listed under “Vehicle details”.
3. Contact your dealer: They can confirm first-year rates and supplement eligibility.

Is an EV Still Worth It?

Despite the new road tax, EVs remain the most cost-effective choice for most drivers. The £200 annual rate is offset by fuel savings, lower maintenance, and grants for charging infrastructure. Plus, the £50,000 supplement threshold makes mid-range EVs more affordable than ever.

If you’re considering an EV, act now to lock in current BiK rates (4% in 2026/27) and avoid future eVED charges. And don’t forget: Home charging on an off-peak tariff is the largest cost saving available to most EV owners. For a full breakdown, explore our guide on Are Home EV Chargers Worth It.

Need Help with EV Charging?

At Lumiel, we specialise in safe, efficient and reliable EV charger installations across Sutton and South London. Our certified electricians ensure transparent pricing – no hidden fees, with a fixed price and timeline for your peace of mind.

Call Lumiel on 0191 743 6829 for a fixed price quote.

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