April 12, 2026 in United Kingdom — Yes, electric cars pay road tax in the UK. Since April 2025, the long-standing exemption for electric vehicles from vehicle excise duty (VED) has been removed. EVs that were once completely free to tax now pay the same standard rate as petrol and diesel cars — £195 per year from year 2 onwards. This change caught many EV buyers off guard, particularly those who purchased with the expectation of lifetime road tax savings. This guide covers exactly what electric car owners pay in 2026, how the rates are calculated, and what the premium car supplement means for high-end EVs.
Do Electric Cars Pay Road Tax in the UK?
Yes — electric cars in the UK are no longer exempt from road tax. The previous exemption was removed from April 2025. Here's the current position:
- First registration (first year): £0 — pure electric vehicles (0g/km CO2) still qualify for a £0 first-year rate
- Year 2 onwards: £195 per year — the standard VED rate
- Premium supplement (£40,000+ EVs): £605/year for years 2–6
Electric Car Road Tax Rates 2026 — Full Breakdown
The VED rates for electric vehicles in 2026 are:
| EV Type | First Year | Years 2–6 | Year 7+ |
|---|---|---|---|
| Pure Electric (under £40k list price) | £0 | £195/year | £195/year |
| Pure Electric (over £40k list price) | £0 | £605/year | £195/year |
| Plug-in Hybrid (by CO2 band) | £10–£130 | £195/year | £195/year |
Why Did Electric Cars Lose Their Road Tax Exemption?
The government removed the EV exemption as part of broader fiscal policy as electric vehicles become mainstream. With EV sales growing rapidly and fuel duty revenues from petrol/diesel cars declining, the Treasury needed to ensure all vehicle types contribute fairly to road maintenance costs. The change was announced in the Autumn Statement and took effect from April 2025.
The £40,000 Premium Car Supplement
Vehicles with a list price above £40,000 pay an additional annual supplement of £410 on top of the standard rate. This applies to all vehicles regardless of fuel type — and it catches most premium and many mid-range electric vehicles:
- Tesla Model 3 Long Range (~$50,000): £605/year (years 2–6)
- Tesla Model Y Long Range (~$55,000): £605/year (years 2–6)
- BMW iX xDrive40 (~$70,000): £605/year (years 2–6)
- Mercedes EQS (~$100,000+): £605/year (years 2–6)
- Hyundai Ioniq 5 (~$45,000): £605/year (years 2–6)
The supplement is based on the vehicle's original list price when new — not its current market value. A three-year-old Tesla Model 3 worth £30,000 on the used market still pays the premium supplement because it was priced above £40,000 when purchased new.
Plug-in Hybrid Tax Rates
Plug-in hybrids (PHEVs) have CO2 emissions above 0g/km, so they don't qualify for the £0 first-year rate. Their first-year rate is based on their CO2 emissions band:
- 1–50g/km: £10 first year, then £195/year
- 51–75g/km: £30 first year, then £195/year
- 76–90g/km: £130 first year, then £195/year
Electric vs Petrol vs Diesel — 10-Year Tax Comparison
Here's how road tax costs compare over 10 years for different vehicle types:
| Vehicle | List Price | Year 1 | Years 2–6 | Years 7–10 | 10-Year Total |
|---|---|---|---|---|---|
| Toyota Yaris Hybrid | £28,000 | £160 | £975 | £780 | £1,915 |
| Tesla Model 3 RWD | £40,000 | £0 | £975 | £780 | £1,755 |
| Tesla Model 3 LR | £52,000 | £0 | £3,025 | £780 | £3,805 |
| BMW 520d M Sport | £55,000 | £322 | £3,025 | £780 | £4,127 |
| Range Rover Sport | £90,000 | £1,961 | £3,025 | £780 | £5,766 |
The Tesla Model 3 Long Range (£52,000) pays £3,025 in road tax over 10 years — £605/year for the first 5 years. A BMW 520d (£55,000) pays slightly more at £4,127 due to higher first-year CO2 rates. The cheapest EV tax profile is the base Tesla Model 3 RWD at £40,000, which avoids the premium supplement entirely.
Company Car Tax for Electric Vehicles
Despite the personal VED changes, EVs remain advantageous as company cars through the Benefit-in-Kind (BiK) system:
- 2025/26: 3% BiK rate for pure EVs
- 2026/27: 5% BiK rate for pure EVs
- 2027/28: 7% BiK rate for pure EVs
A higher-rate taxpayer with a £50,000 EV pays around £300 in BiK tax in 2025/26 — far less than the £1,000+ BiK bills on equivalent petrol company cars.
Pre-2025 Electric Vehicle Registrations
Vehicles registered before April 2025 that were already enjoying the EV exemption continue to do so under transitional provisions. However, from the vehicle's first anniversary after April 2025, these vehicles will also transition to the new rates. Check your specific renewal date with the DVLA.
Frequently Asked Questions
Do electric cars pay road tax UK 2026?
Yes. Since April 2025, electric vehicles pay the standard VED rate of £195/year from year 2 onwards. The first year is £0 for pure electric vehicles (0g/km CO2). EVs over £40,000 list price pay £605/year for the first 5 years.
Do you pay road tax on electric cars from 2025?
Yes. The exemption was removed from April 2025. Electric vehicles registered before April 2025 that were already exempt continue under transitional arrangements, but new EV registrations from April 2025 onwards pay the standard rates.
Are there any remaining EV tax benefits?
Company car drivers benefit from low BiK rates (3–7% for pure EVs vs 25–37% for petrol/diesel). However, personal road tax now matches petrol and diesel vehicles.
How much is road tax for a Tesla in the UK?
A Tesla Model 3 RWD (£40,000): £0 first year, then £195/year. A Tesla Model 3 Long Range (£52,000): £0 first year, then £605/year for years 2–6, then £195/year from year 7.
Do plug-in hybrids pay the same road tax as petrol?
No — plug-in hybrids with very low CO2 emissions (1–50g/km) pay just £10 in the first year. From year 2, all vehicles pay the same standard rate of £195/year.
Conclusion
Electric cars do pay road tax in the UK in 2026 — £0 first year for pure EVs, then £195/year (or £605/year for vehicles over £40,000 for the first 5 years). While EVs have lost their lifetime exemption, they still offer advantages through lower company car BiK rates. Use our UK car tax calculator to compare road tax costs across electric, petrol, diesel, and hybrid vehicles before you buy.