Electric Car Tax UK:
What EVs Pay in 2026/27
Electric vehicles are no longer exempt from Vehicle Excise Duty. From April 2026, EVs pay £10 in year 1 and £200/year from year 2. The expensive car supplement threshold for EVs has been raised to £50,000.
£10
First year rate
All new EVs
£200
Year 2+ rate
EVs under £50,000
£640
Year 2+ rate
EVs over £50,000 (yrs 2-6)
Timeline of EV Tax Changes
Electric vehicles registered before this date paid £0 VED until April 2025, when the £0 Band A rate was removed. They now pay the Band A rate of £20 per year under the old graduated system.
EVs were completely exempt. The new post-2017 system gave zero-emission vehicles a £0 first year rate and £0 standard rate. They paid nothing.
First year rate: £10. Standard rate from year 2: £195. Expensive car supplement: £425 for cars over £40,000. EV supplement threshold: £40,000.
First year rate: £10. Standard rate from year 2: £200. Expensive car supplement: £440 for cars over £50,000 (EV threshold raised from £40k to £50k).
Electric Vehicle Excise Duty (eVED) starts on 1 April 2028: 3p per mile for battery EVs and 1.5p per mile for plug-in hybrids, paid on top of VED (Budget 2026, to be legislated in Finance Bill 2026-27).
Five Scenarios: What You Will Pay
| Scenario | First Year | Annual (yr 2+) | 5-Year Total | Notes |
|---|---|---|---|---|
| New EV under £50,000 list price | £10 | £200 | £810 | No supplement. Standard rates only. |
| New EV over £50,000 list price | £10 | £640 | £2,570 | Supplement of £440 applies for years 2-6. |
| Existing EV (registered 2017-2025, under £40k) | N/A | £200 | £1,000 | Standard rate from year 2 when April 2025 changes took effect. |
| EV registered before April 2017 | N/A | £20 | £100 | Pre-2017 system. Band A is now £20 (the £0 rate ended April 2025). |
| EV registered 2017-2025, over £50k list price | N/A | £200 | £1,000 | Exempt from the supplement: it only applies to EVs first registered on or after 1 April 2025. |
Is Your EV Over the £50,000 Line?
The supplement test uses the list price of the exact version when it was first registered, including factory options, not the price you paid. Model prices move often, so check the published list price for your trim (the dealer invoice or the manufacturer's configurator) rather than a model's headline "from" price. Over £50,000 for an EV registered from 1 April 2025 means £640 a year in years 2 to 6; £50,000 or less means £200.
From 1 April 2028: Electric Vehicle Excise Duty (Pay-Per-Mile)
Electric cars will pay a mileage charge on top of VED from 1 April 2028. Electric Vehicle Excise Duty (eVED) was announced at Budget 2025 and confirmed at Budget 2026, with legislation in Finance Bill 2026-27. The rates are 3p per mile for battery electric and hydrogen fuel cell cars and 1.5p per mile for plug-in hybrids, uprated by CPI from 2029/30.
You will pay it when you renew your vehicle tax: you give an odometer reading and estimate your mileage for the coming tax period (usually a year).
Example: a battery EV driven 8,000 miles a year would pay 8,000 x 3p = £240 a year in eVED; a plug-in hybrid driving the same distance would pay £120. Both still pay VED as well.
Source: GOV.UK Budget 2026 overview of tax legislation and rates, paragraph 1.76 (published 28 October 2026, checked 1 November 2026). The mileage in the example is ours; put in your own.
EV vs Petrol vs Diesel: 5-Year VED Cost Comparison
| Vehicle Type | Year 1 | Annual (yr 2+) | 5-Year Total |
|---|---|---|---|
| New EV (under £50k) | £10 | £200 | £810 |
| New EV (over £50k) | £10 | £640 | £2,570 |
| Average petrol (Band G, 120 g/km) | £455 | £200 | £1,255 |
| New non-RDE2 diesel (Band G, 120 g/km) | £560 | £200 | £1,360 |
| Premium petrol (Band G, over £40k) | £455 | £640 | £3,015 |