Do You Pay Road Tax on Electric Cars?
For people who are considering switching to an EV on of the big draws is not having to pay road tax, well at least it was. It’s still a common question, “Do you now have to pay road tax on electric cars?”
Until recently, the answer was “no” for most electric vehicles. But with the UK’s 2025 tax changes, every EV driver now needs to understand Vehicle Excise Duty (VED), how much it costs, and how the new rules apply depending on when your electric vehicle was registered.
In this guide, we break down exactly what electric car owners need to pay, how the rules work, what’s changing next, and how EV running costs compare to petrol and diesel cars.
Why Electric Cars Are No Longer Exempt From Road Tax
For years, electric cars enjoyed a VED exemption to encourage EV adoption. But on the 1st of April 2025, the government removed this benefit for zero-emission vehicles.
Why? Because as more drivers switch to electric, traditional fuel duty and road-tax income is dropping. The government now needs EV drivers to contribute to road maintenance in the same way petrol and diesel car owners do.
From 2025 onwards:
✔ Electric cars pay VED
✔ Plug-in hybrids pay increased rates
✔ Electric vans also start paying road tax
✔ EVs over £40,000 pay the Expensive Car Supplement
The goal is to create a “fairer system” where all vehicles, including zero-emission vehicles, contribute.
How Much Road Tax Do Electric Car Drivers Pay in 2026?
While some people understand this need, other EV drivers are not so on board with the change! But the good news is that although there is now an amount of tax to pay, it often works out as less for EVs than petrol and diesel cars overall, with the first year at £10.
Here’s a clear breakdown based on the government’s 2026 road-tax structure.
Vehicle Excise Duty (VED) Rates for Electric Vehicles Registered From 1 April 2025
|
Vehicle Type |
First-Year Rate |
Standard Rate (From Year 2) |
Expensive Car Supplement (If List Price > £40,000) |
|
Battery Electric Vehicles (BEVs) |
£10 (lowest first-year rate) |
£195 per year |
+ £425/yr for years 2–6 |
|
Plug-in Hybrids (PHEVs) |
Varies (based on emissions) |
£195 per year |
+ £425/yr |
|
Electric Vans |
£10 |
£195 per year |
No supplement |
|
Petrol & Diesel Cars (for comparison) |
£10–£2,745 (CO₂-based) |
£195 per year |
+ £425/yr |
Electric Vehicles Registered Between 1 April 2017 and 31 March 2025
If your EV was registered during this period, you were initially exempt from VED, but that exemption ends in 2025.
From April 2025:
- You’ll pay the standard rate of £195 per year
- If your EV had a list price over £40,000, you must pay the Expensive Car Supplement (£425 per year for years 2–6)
This affects a lot of popular EVs, including Teslas, Mercedes EQ models, and some higher-spec Kia, Hyundai, Audi and BMW electric vehicles.
What About Plug-In Hybrids (PHEVs)?
PHEVs had very low VED rates in the past due to low emissions, but under the new system:
- PHEVs will no longer receive discounted rates
- They will pay the same £195 standard rate
- If the list price exceeds £40,000, they also pay the expensive car supplement
This means plug-in hybrids become more expensive to tax than they were before 2025.
What Is the Expensive Car Supplement?
We have mentioned The Expensive Car Supplement but what does this mean? It applies to any vehicle, petrol, diesel, hybrid, or electric, with a list price over £40,000.
If you are an EV driver, with a vehicle that has a list price over this amount, you must now pay:
- £425 per year
- Paid for five years, from years 2–6 after first registration
This is in addition to the standard rate.
If your EV cost under £40,000 when new, you do not pay this surcharge.
What Electric Vehicle Owners Pay Based on When the Car Was Registered
EVs Registered Before April 2017
Some may still benefit from historic exemption rules, but most will move to the £195 standard rate in 2025.
EVs Registered Between April 2017 – March 2025
- First year: previously £0
- From April 2025: £195 standard rate
- £425/yr expensive car supplement if list price > £40k
EVs Registered From April 2025 Onwards
- First year: £10 (lowest VED rate)
- Standard rate: £195 per year
- £425/yr supplement if list price > £40k
What About Electric Vans and Other Zero-Emission Vehicles?
From 2025, electric vans will also:
- Pay £10 in the first year
- Then £195 per year afterwards
Motorcycles and other emission-free vehicles also move into standard rate categories.
What’s Likely Coming Next & Pay-Per-Mile Tax
In the latest Budget, the government confirmed that it is preparing the groundwork for a pay-per-mile road-pricing system for electric vehicles, which is expected to be implemented from around 2028. This marks a significant shift in how road use will be taxed in the UK as the transition away from petrol and diesel continues.
The move is being driven by a sharp decline in fuel duty revenue as EV adoption grows, with existing Vehicle Excise Duty changes alone unable to replace that lost income fully. A mileage-based system is intended to ensure that all road users contribute fairly to maintaining the road network, regardless of how their vehicle is powered.
Under the proposed approach, EV drivers could face a per-mile charge rather than traditional fuel duty, with usage potentially recorded through vehicle data, MOT mileage records or insurance-linked systems. This represents one of the biggest changes to road taxation in decades, and while full details are still under consultation, EV drivers should be aware that pay-per-mile charging is now a confirmed future policy direction rather than speculation.
Is an Electric Car Still Worth It After Road-Tax Changes?
Even with new VED rules, EVs still offer strong financial benefits:
✔ Cheaper running costs than petrol and diesel cars
Charging at home still beats fuel costs.
✔ Lower maintenance
EVs have fewer moving parts than combustion engines.
✔ Reduced fuel duty impact
Until pay-per-mile arrives, EV owners avoid fuel duty entirely.
✔ No emissions-based first-year penalties
Petrol and diesel cars can pay up to £2,745 in year 1.
EVs pay just £10, the lowest first-year rate possible.
✔ Better long-term efficiency
For high-mileage drivers, EVs remain significantly cheaper to run.
What EV Drivers Should Do Now
Here’s a quick checklist for electric vehicle owners:
- Check your vehicle’s registration date
- Find out your official list price when new. Even if you bought used, the original price determines tax.
- Budget for VED from 2025 onwards. Most EVs will cost £195 per year.
- If buying a new EV, consider staying under £40,000. This avoids the £425 expensive car supplement.
- Use smart home charging to reduce overall running costs
Yes, EVs Now Pay Road Tax, but They’re Still Cost-Efficient
From 2025 onward, electric cars, plug-in hybrids, and electric vans all fall under the UK’s standard Vehicle Excise Duty system. Electric car drivers will no longer be exempt, and higher-value EVs will be subject to the expensive car supplement.
However, even with these changes, electric vehicles remain far more efficient, cheaper to run, and significantly lower-maintenance than petrol and diesel cars.
If you want to maximise savings and keep your EV running costs low, smart home charging remains the most powerful tool available to electric vehicle owners.
Frequently Asked Questions
Do electric cars pay road tax in the UK?
Yes. From 1 April 2025, all electric cars must pay Vehicle Excise Duty (VED). The previous exemption for zero-emission vehicles is ending, so EV drivers will begin paying road tax like petrol and diesel owners.
How much road tax will I pay for an electric car in 2025?
Most EV owners will pay £10 in the first year and £195 a year from the second year onwards. If the original list price was over £40,000, you’ll also pay the Expensive Car Supplement of £425 a year for years two to six.
Do plug-in hybrids pay road tax?
Yes. Plug-in hybrids pay a first-year rate based on emissions and then move onto the £195 standard rate. If the car cost more than £40,000 when new, the Expensive Car Supplement also applies.
How does the Expensive Car Supplement affect EVs?
If your electric car had a list price above £40,000, you’ll pay an additional £425 a year for five years, from the second year after registration through to year six. This applies even if you bought the car used.
My electric car was registered between 2017 and 2025. What do I pay?
You will pay the £195 standard rate from April 2025. If your EV originally cost more than £40,000, you also pay the Expensive Car Supplement for five years.
Do electric vans pay road tax?
Yes. From 2025, electric vans pay £10 in the first year and £195 a year after that. Vans do not pay the Expensive Car Supplement.
Why is the government removing EV tax exemptions?
The government is removing exemptions because fuel duty revenue is falling as more people switch to electric vehicles. The changes ensure EV drivers contribute fairly to road funding.
Will electric cars be taxed per mile in the future?
A pay-per-mile system is being developed and is expected around 2028. EV drivers may pay a mileage-based charge, although details have not been finalised.
Are electric cars still cheaper to run than petrol and diesel cars?
Yes. EVs usually cost less to charge at home, require less maintenance, and avoid high emissions-based first-year tax rates. Even with VED changes, electric vehicles typically remain cheaper to run.
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