Electric cars

Do electric cars pay road tax? VED rates for EVs explained

Electric cars used to be exempt from vehicle excise duty, often called road tax. That ended on 1 April 2025. Here is what EV owners now pay, how the extra charge for expensive cars works, what older EVs pay and what the planned pay-per-mile eVED will add from 2028.

Last updated 19 October 2026Last checked 19 October 2026Reviewed quarterly
The DVLA headquarters tower in Swansea

Quick answer: Yes. Since 1 April 2025, electric cars pay vehicle tax. A new electric car registered from that date pays £10 for the first year, then the standard rate of £200 a year. Electric cars with a list price over £50,000 also pay an extra £440 a year for five years, making £640, from the second time they are taxed.

The rates for electric cars

These are GOV.UK’s vehicle tax rates, checked on 19 October 2026.

Cars registered on or after 1 April 2017

Electric car
First tax payment (zero emission, 0g/km)£10
Standard rate from the second payment, single 12-month payment£200
Standard rate, 12 monthly Direct Debit payments£210 in total
With the extra charge for a list price over £50,000£640 a year for five years

Cars registered between 1 March 2001 and 31 March 2017

These are taxed by CO2 emissions. Zero emission cars fall into band A, up to 100g/km, at £20 a year for a single payment, or £21 in total by 12 monthly Direct Debit payments.

The extra charge for expensive cars

GOV.UK says you pay an extra £440 a year if you have a car with a list price of more than £40,000, or an electric car with a list price of more than £50,000. You only pay it for five years, from the second time the vehicle is taxed.

Key points:

  • The £50,000 threshold for electric cars also applies to electric vehicles registered between 1 April 2025 and 31 March 2026.
  • You do not pay it if you have a zero emission vehicle registered before 1 April 2025.
  • The list price is the published price before the car is first registered, before any discounts.

Options can push a car over the threshold, so check the full list price of the exact car. A car eligible for the Electric Car Grant must have a recommended retail price of £37,000 or less, so it will be well under the threshold.

When EVs started paying

Electric cars were exempt until 31 March 2025. GOV.UK’s exemptions page now says: “From 1 April 2025, if you have an electric car, van, motorcycle or tricycle, you’ll need to pay vehicle tax. Only heavy goods vehicles that weigh over 3,500kg will still be exempt.”

Coming in 2028: eVED

The government plans a separate pay-per-mile charge, Electric Vehicle Excise Duty (eVED), from 1 April 2028. Its policy paper sets the rate at 3p a mile for battery electric and hydrogen cars and 1.5p a mile for plug-in hybrids, paid alongside normal vehicle tax and uprated by inflation from 2029-30. The law is still in draft, and the Budget on 28 October 2026 may give more detail.

At 7,000 miles a year, 3p a mile would be £210 a year on top of vehicle tax, on our arithmetic. See the eVED explainer and the eVED calculator.

How it adds up

For a new electric car with a list price under £50,000, driven 7,000 miles a year:

YearVehicle taxeVED (from April 2028)
First year£10Depends on date
Later years£200£210 (at 3p a mile)

This is our illustration, using GOV.UK rates and the planned eVED rate. It will change if rates rise.

Comparing running costs

Vehicle tax is only part of the cost. See are electric cars worth it and the EV vs petrol calculator.

Frequently asked questions

Do I pay the extra charge if I bought a used EV that cost over £50,000 new?

It depends on its registration date. It applies for five years from the second time the car is taxed, and does not apply to zero emission vehicles registered before 1 April 2025. Check the car on GOV.UK.

Do plug-in hybrids pay the same?

No. Plug-in hybrids are taxed on their CO2 emissions in the first year, and the £40,000 threshold applies to them. See GOV.UK for the bands.

Is road tax the same as eVED?

No. Vehicle tax is an annual charge; eVED is a planned extra charge per mile from April 2028.

Sources

Last checked: 19 October 2026

Image credit: Zweifel via Wikimedia Commons, CC BY-SA 3.0, cropped.