Independent guide. Not affiliated with DVLA or GOV.UK. Always verify rates at gov.uk.
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Tesla Model 3 Car Tax UK
2026/27 VED Rates

Every Model 3 pays the zero-emission £10 first-year rate. The Standard RWD and Long Range AWD trims sit under the £50,000 expensive-car supplement threshold raised at the April 2026 reform, so they pay just the £200 standard rate from year 2. Only the Performance variant crosses the line, picking up the £440/year supplement for years 2 to 6.

£10

First year

All variants

£200

Year 2+

RWD + Long Range

£640

Year 2-6 Performance

Over £50k only

Model 3 trim breakdown

TrimUK list priceYear 1Year 2-6Year 7+Why
Model 3 RWDFrom around £40,240£10£200£200Well under £50k EV threshold. Standard rate only.
Model 3 Long Range AWDFrom around £47,000£10£200£200Just under the £50k EV threshold. No supplement.
Model 3 PerformanceFrom around £58,000£10£640£200Above £50k. £200 + £440 supplement years 2-6.

Tesla list prices vary with the Refresh / Highland update cycle and option packages. Use the as-registered list price on the V5C, not the current market price, when applying the £50,000 supplement test.

Total 5-year VED for a Model 3 RWD

For a new Model 3 RWD registered 1 May 2026:

  • - Year 1: £10 first-year rate
  • - Year 2-5: £200 standard rate, four years
  • - 5-year total: £10 + (4 x £200) = £810

By comparison, an equivalent petrol family car (Band G, 120 g/km) pays £270 first year + (4 x £200) = £1,070 over five years. The Model 3 saves about £260 in VED across five years versus a typical mid-range petrol car.

What changed from April 2026

The £40,000 EV expensive-car threshold was raised to £50,000 from 1 April 2026, deliberately keeping mainstream EV variants out of the supplement net. For the Model 3 this matters: the Long Range AWD at around £47,000 would have been caught under the old £40,000 threshold but escapes the supplement entirely under the new £50,000 line. Only the Performance variant remains in scope.

Updated 2026-05-11