Do electric cars pay road tax in the UK?Yes — from April 2025, electric vehicles (EVs) are no longer exempt from Vehicle Excise Duty (VED) in the UK. All EVs registered on or after 1 April 2025 pay the standard annual rate of £195 per year. EVs registered between 1 April 2017 and 31 March 2025 also pay £195 per year. Zero-emission vehicles registered before April 2017 pay a reduced rate. From April 2025: all EVs pay £195/year VED (same as efficient petrol and diesel cars). New EVs over £40,000 also pay the £620/year Expensive Car Supplement for 5 years from the second year of registration. Electric car road tax rates UK 2026
What is the Expensive Car Supplement for EVs?New EVs with a list price above £40,000 (including options) attract an additional Expensive Car Supplement of £620 per year, payable from the second year of registration for 5 years. From years 7 onwards, only the standard £195 annual rate applies.
Why did EV road tax exemption end?The government announced the end of VED exemption for EVs in the 2022 Autumn Statement, citing the need to ensure EV drivers contribute to road maintenance funding as EV adoption grows. The OBR estimated the exemption cost the Treasury approximately £500 million per year by 2025. How to pay electric car road tax
Does road tax exemption still apply to older EVs?Zero-emission vehicles registered before 1 April 2017 pay the alternative fuel rate of £20 per year. This covers a small number of early-generation EVs such as the original Nissan Leaf (2011 to 2013 models) and early Renault Zoe. Verdict Budget £195 to £815 per year depending on list price For new EVs under £40,000, budget £195 per year in road tax from the second year. For EVs over £40,000, budget £815 per year for years 2 to 6. Factor this into your total cost of ownership calculations when comparing EVs with petrol or diesel equivalents. Frequently asked questionsDo electric cars pay road tax in the UK in 2026? Yes. From April 2025, all EVs pay VED. New EVs pay £10 in the first year and £195 per year from year two. EVs over £40,000 also pay an additional £620 per year Expensive Car Supplement for years 2 to 6. Is the Expensive Car Supplement the same for EVs and petrol cars? Yes. The £620 Expensive Car Supplement applies equally to all vehicles (petrol, diesel, hybrid, electric) with a list price over £40,000. EVs were previously exempt from this supplement but lost the exemption from April 2025. How much is road tax for a Tesla Model 3? A Tesla Model 3 starts from approximately £43,000, so it falls above the £40,000 Expensive Car Supplement threshold. From year 2 to year 6, road tax is £815 per year (£195 standard + £620 supplement). From year 7, the standard £195 annual rate applies. Can I still buy an EV exempt from road tax? Only if the EV was registered before April 2025 and its list price was under £40,000. Any new EV purchased from April 2025 onwards pays VED. Second-hand EVs registered between 2017 and March 2025 pay the £195 annual standard rate. |
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