April 13, 2026 in United Kingdom — One of the most common questions from prospective electric car buyers is: do electric cars pay road tax in the UK? The answer is nuanced — electric vehicles enjoy significant electric car tax advantages in the UK, but they are not permanently exempt. Here is what you need to know about EV road tax in 2026.

Do Electric Cars Pay Road Tax in the UK?

Electric cars are not exempt from Vehicle Excise Duty — they still require road tax. However, they receive the most favourable rates available. As of 2026, any vehicle with 0g/km CO2 emissions pays £0 first-year VED, then £10 per year for years 2-6, and the standard £190 annual rate thereafter.

So while electric cars do technically pay road tax in the UK, the annual cost is among the lowest of any vehicle type — £10 per year compared to £190 for a petrol car.

Electric Car Tax Rates UK 2026

  • Brand new EV (registered 2025+): £0 first year — best available rate
  • EV registered 2024: £0 first year rate still applies
  • EV years 2-6: £10 annual VED — significantly lower than petrol equivalents
  • EV years 7+: £190 annual rate — same as petrol, diesel, hybrid
  • Used EV (any age): £10 annual (years 2-6 of that registration), then £190

Future Road Tax for Electric Cars

The Chancellor announced in the 2025 Autumn Statement that electric vehicles will begin paying standard VED rates from 2027. The current zero first-year rate and £10 annual benefit will be phased out as the EV market matures. This means EV buyers in 2026 have a narrow window to lock in favourable rates.

The planned change reflects the growing proportion of EVs in the fleet — as zero-emission vehicles become mainstream, the tax advantages that encouraged their adoption will be gradually removed to maintain VED revenue.

Electric Car Tax vs Petrol: A 5-Year Comparison

Over a five-year ownership period, the electric car tax UK savings compared to a petrol equivalent are substantial. A petrol car emitting 150g/km pays approximately £1,385 in VED over five years (year one: £600, then four years at £190 + year 5 at £190). An EV pays £0 + 4 x £10 = £40 total. That is a saving of £1,345 in road tax alone.

Company Car BIK Tax for Electric Vehicles

For company car drivers, the Benefit-in-Kind rate for zero-emission vehicles is just 2% of the P11D value — the lowest BIK rate available. A £40,000 electric company car costs just £800 per year in BIK tax at 40% tax rate (£320 per year). This makes EVs extraordinarily tax-efficient for company car drivers.

Conclusion

Electric cars do pay road tax in the UK, but at the lowest rates available — £0 first year and £10 annually for years 2-6. The window to benefit from these rates is closing as 2027 reforms approach. For the most comprehensive electric car tax UK guidance, use our car tax calculator. Read more at GOV.UK VED rate tables.