Last reviewed: 30 April 2026 | Sources: DVLA, GOV.UK — Vehicle tax rates, HMRC
TL;DR: From 1 April 2025 electric cars are no longer exempt from Vehicle Excise Duty (VED). In 2025/26, new EVs pay £10 in their first year then £195 per year (the standard annual rate). From 1 April 2026, EVs with a list price above £40,000 also pay the expensive car supplement of £620 per year for five years. Zero-emissions vans pay the same rate as petrol/diesel vans. This change was announced in the 2022 Autumn Statement and confirmed in subsequent budgets.
Why did EV road tax change?
Electric vehicles were exempt from VED from their introduction as a government incentive to accelerate zero-emission adoption. As EVs became mainstream — representing a significant and growing share of new car registrations — the Treasury faced an increasing shortfall in VED revenue. The OBR estimated that maintaining the EV exemption indefinitely would cost the exchequer billions annually by the late 2020s. The decision to end the exemption from April 2025 was announced by the then Chancellor in the November 2022 Autumn Statement and has been maintained through subsequent budgets.
VED rates for electric cars: 2025/26
| Registration date | First year rate | Standard annual rate (year 2+) |
|---|---|---|
| Registered on or after 1 April 2025 | £10 | £195 |
| Registered 1 April 2017 – 31 March 2025 (previously exempt) | N/A (already registered) | £195 from April 2025 |
| Registered before 1 April 2017 | N/A | £20 (pre-2017 flat rate for zero-emission) |
Source: DVLA vehicle tax rates, GOV.UK, 2025/26. The standard rate of £195 applies to all cars with zero CO2 emissions registered on or after 1 April 2017. This is the same rate as the lowest-emission petrol and diesel cars.
The expensive car supplement — critical for EVs
Cars with a list price (manufacturer's published retail price including factory-fitted options, VAT, and delivery charges, but excluding first registration fee and VED) above £40,000 pay an additional supplement on top of the standard annual rate. In 2025/26 this supplement is £620 per year and applies for years 2 through 6 (five years total, from the second licence renewal after first registration).
For EVs registered from 1 April 2025, the expensive car supplement applies for the first time from April 2026. Many popular EVs — including the Tesla Model 3, BMW iX, Audi Q4 e-tron, and Mercedes EQA — have list prices above £40,000. Owners of these vehicles will pay:
- Year 1 (first registration): £10
- Years 2–6: £195 + £620 = £815 per year
- Year 7 onwards: £195 per year
The list price used is the manufacturer's price at first registration, not what you actually paid (so negotiated discounts do not reduce the supplement). Second-hand buyers of an EV originally priced above £40,000 also pay the supplement for the remaining applicable years.
VED rates for electric vans: 2025/26
Zero-emission light goods vehicles (vans up to 3,500kg) now pay the same flat rate as petrol and diesel vans. In 2025/26 this is £335 per year. There is no first-year rate differentiation for vans — all pay the same rate regardless of emissions. Electric motorcycles and tricycles pay £22 per year (the zero-emission motorcycle rate).
How to pay road tax on your EV
VED is paid the same way as for any vehicle:
- Online at gov.uk/vehicle-tax using your V5C logbook, V11 reminder, or new keeper supplement
- By phone: 0300 123 4321
- At a Post Office branch that handles vehicle tax
You can pay annually, every 6 months (10% surcharge on the annual rate), or monthly by Direct Debit (also carries a 5% annual surcharge on top of the standard rate).
Does charging at home affect VED?
No. VED is a flat annual charge based on emissions at the tailpipe (or list price for the supplement). It has no connection to how or where you charge your vehicle or how many miles you drive.
Company car tax (BIK) for EVs: still favourable
VED is separate from Benefit in Kind (BIK) company car tax. EVs retain a very low BIK rate: 3% of list price in 2025/26, rising to 5% in 2027/28 and 7% in 2028/29. By comparison, a 100g/km petrol car is taxed at around 25% BIK. The BIK advantage for EVs as company cars remains substantial despite the VED change.
Frequently asked questions
When did EV road tax start?
From 1 April 2025. EVs registered before that date became liable from their next licence renewal after 1 April 2025. No EV is exempt from VED from April 2025 onwards (except vehicles exempt as disabled tax class or historic vehicles).
Is my EV list price above £40,000? How do I check?
Check your V5C logbook — the list price should be shown. Alternatively, check the manufacturer's website for the base price at your specification. Remember: it is the manufacturer's list price at first registration, not the price you paid, that determines supplement eligibility.
Do I pay road tax on a leased EV?
Yes. The registered keeper pays VED, which is typically the finance company on a PCP or lease. In practice, VED is usually factored into your monthly lease payment — check your agreement to confirm how it is handled.
Are there any EVs still exempt from VED?
Disabled tax class vehicles (regardless of fuel type) remain exempt. Historic vehicles (registered before 1 January 1977 from April 2026 — the 40-year rolling rule) pay no VED. Agricultural vehicles, mobility scooters, and invalid carriages have separate rules. No standard EV is exempt from VED from April 2025.
Will EV road tax increase further?
VED rates are reviewed in each Autumn Statement. The current rates are confirmed for 2025/26 and 2026/27. Future years are subject to Budget decisions. The expensive car supplement threshold of £40,000 has not been increased since its introduction in 2017 — inflation has pulled significantly more vehicles above it over time.
Sources: DVLA — Vehicle tax rates and exemptions, GOV.UK | HM Treasury — Autumn Statement 2022 | HMRC — Company car tax (BIK) rates | GOV.UK — Tax your vehicle, gov.uk/vehicle-tax.
Informational only. For your specific vehicle check gov.uk/check-vehicle-tax. See our UK Vehicle Tax hub.
