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).
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. |
Popular EVs and Their 2026/27 Tax
| Model | First Year | Annual (yr 2+) | Notes |
|---|---|---|---|
| Tesla Model 3 (from £40,240) | £10 | £200 | Under £50k EV threshold. No supplement. |
| Tesla Model Y (from £44,990) | £10 | £200 | Under £50k EV threshold. No supplement. |
| Nissan Leaf (from £28,495) | £10 | £200 | Well under £50k. Cheapest EV tax scenario. |
| MG4 (from £26,995) | £10 | £200 | Under £50k. No supplement. |
| Hyundai Ioniq 5 (from £41,450) | £10 | £200 | Under £50k EV threshold. No supplement. |
| BMW iX (from £74,900) | £10 | £640 | Over £50k. Supplement applies years 2-6. |
| Polestar 2 (from £46,000) | £10 | £200 | Under £50k EV threshold. No supplement. |
| Tesla Model S (from £79,990) | £10 | £640 | Over £50k. Supplement applies years 2-6. |
List prices are approximate as of April 2026. Supplement threshold for EVs is £50,000 list price. ICE supplement threshold is £40,000.
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 |
| Older non-RDE2 diesel (Band G, 120 g/km) | £560 | £200 | £1,360 |
| Premium petrol (Band G, over £40k) | £455 | £640 | £3,015 |