For years, electric vehicles were exempt from Vehicle Excise Duty (VED) — commonly known as road tax. That exemption ended in April 2025. As of 2026, EV owners pay the same standard rates as petrol and diesel car owners. Here's what that means for your wallet.
EV Road Tax Rates 2026
| Vehicle Type | First Year Rate | Standard Annual Rate |
|---|---|---|
| New zero-emission car (registered after 1 April 2025) | £10 | £195 |
| Zero-emission car registered 1 April 2017–31 March 2025 | N/A | £195 |
| Zero-emission car registered before 1 April 2017 | N/A | £195 |
| EV over £40,000 list price (first 5 years) | £10 | £195 + £620 (luxury supplement) = £815 |
The Expensive Surprise: Luxury Car Supplement
Cars with a list price (at first registration) exceeding £40,000 attract a "luxury car supplement" of £620/year for years 2–6. Most new full-electric cars cost over £40,000, so most new EV buyers are paying £815/year in VED for their first 5 years — not £195.
Company Car BiK Rate
The Benefit-in-Kind (BiK) rate for zero-emission company cars rose to 4% from April 2026 (up from 2% in 2024/25). For a 40% taxpayer with a £35,000 list price company EV: 4% × £35,000 × 40% = £560/year extra tax (£47/month). This is still substantially cheaper than a petrol company car.
Frequently Asked Questions
Do hybrids pay road tax?
Yes. Plug-in hybrids pay VED based on their CO2 emissions — the low-emission rates apply but they're not zero. A PHEV registered after April 2025 may pay £120–£180/year in VED depending on official emissions figures. Standard hybrids (non-plug-in) pay standard VED rates fully.
When is my VED due?
VED renewal is annual and tied to your registration. You'll receive a reminder from DVLA. Payment can be made annually, 6-monthly (with a 5% surcharge), or monthly via Direct Debit (approximately 5% extra annually).
Calculate your EV costs with our EV Road Tax Calculator.