April 13, 2026 in United Kingdom — Electric vehicles in the UK had a significant tax change in April 2025, when the long-standing road tax exemption for zero-emission vehicles was removed. EVs now pay the same £195/year standard rate as petrol and diesel cars from year two onwards. However, pure EVs still enjoy a £0 first-year rate, making them the cheapest vehicle type to tax at initial registration. This guide covers the complete EV road tax picture for 2026.
The April 2025 EV Road Tax Changes — What Changed
Before April 2025, electric vehicles registered from 2017 onwards paid £0 in road tax indefinitely. This exemption was one of the most significant financial incentives for EV buyers, effectively removing road tax as an ongoing cost for electric vehicle owners.
From April 2025, the rules changed. All EVs registered from this date now pay:
- £0 in the first year (same as before — based on 0g/km CO2)
- £195/year from year two onwards (new change — previously £0 indefinitely)
- £390/year premium supplement (if the vehicle costs £40,000+ and in years 2-6)
EV Road Tax Rates 2026 — Complete Breakdown
Pure electric vehicles with 0g/km CO2 emissions fall in the £0 first-year tax band. After year one, they pay the standard rate like all other post-April 2017 vehicles:
| EV Type | Registration | First Year | Year 2+ | Premium Supplement |
|---|---|---|---|---|
| Pure Electric (0g/km) | Post-April 2025 | £0 | £195/year | £390/yr (if £40k+) |
| Pure Electric (0g/km) | Pre-April 2025 | £0 | £0 (grandfathered) | Not applicable |
| Plug-in Hybrid (1-50g/km) | Post-April 2025 | £10 | £195/year | £390/yr (if £40k+) |
| Plug-in Hybrid (51-75g/km) | Post-April 2025 | £30 | £195/year | £390/yr (if £40k+) |
Note that EVs registered before April 2025 retain their £0 annual rate indefinitely under the grandfathered rule. This means a Tesla Model 3 registered in 2023 pays £0 road tax each year, while the same model registered in 2026 pays £195/year from year two.
Premium Supplement — EVs Over £40,000
Electric vehicles with a list price over £40,000 pay the premium supplement of £390/year from years 2-6 of ownership. This applies to most premium EVs including the Tesla Model 3 Long Range (from ~£45,000), BMW i4 (£45,000+), Mercedes EQC, and similar models.
However, even a £50,000 EV in years 2-6 pays £585/year (£195 + £390), which is still significantly less than a £50,000 petrol car in the same years (the petrol car would also pay £585, but paid £270 in the first year versus £0 for the EV — a £270 first-year saving).
EV vs Petrol — 10-Year Road Tax Cost Comparison
Comparing a pure electric vehicle with a typical petrol car over 10 years:
| Cost Element | EV (Post-April 2025) | Petrol (130g/km) |
|---|---|---|
| First year VED | £0 | £220 |
| Years 2-10 (standard rate) | £1,755 (£195 x 9) | £1,755 (£195 x 9) |
| 10-Year Total | £1,755 | £1,975 |
| EV vs Petrol Saving | — | £220 over 10 years |
The savings are modest in pure road tax terms. The bigger financial advantages of EVs come from reduced fuel costs (electricity vs petrol/diesel), lower maintenance costs, and company car BiK tax benefits.
Company Car BiK Tax — The Real EV Tax Advantage
For company car drivers, Benefit in Kind (BiK) tax on electric vehicles is the most significant financial benefit. In 2025/26, pure electric vehicles attract just a 3% BiK rate. On a £50,000 EV, a 40% taxpayer pays only £300/year in BiK tax.
Compare this to a £50,000 petrol car at a 20% BiK rate and 37% bracket — the same driver pays £3,700/year in BiK tax. That's a £3,400 annual saving that makes EVs extraordinarily attractive for company car drivers.
EV Road Tax in 2026 and Beyond
The government has confirmed that the 3% BiK rate for pure electric vehicles will increase incrementally from April 2026:
- 2025/26 tax year: 3% BiK
- 2026/27: 5% BiK
- 2027/28: 7%
- 2028/29 onwards: To be confirmed (likely 10%)
For personal owners not eligible for company car schemes, the road tax difference between EVs and petrol cars is modest. The first-year £0 rate and reduced BiK for company car drivers remain the key financial advantages.
Frequently Asked Questions
Do EVs still get a tax advantage after the April 2025 changes?
Yes. Pure EVs still pay £0 in the first year — the cheapest first-year rate of any vehicle type. For company car drivers, the 3% BiK rate (rising to 5% in 2026) is still significantly lower than petrol cars. The key change is that EVs now pay £195/year from year two instead of £0.
Can I claim road tax back if my EV is registered before April 2025?
No. Pre-April 2025 EVs retain their grandfathered £0 annual rate indefinitely. The change only affects EVs registered from April 2025 onwards. Your registration date on the V5C determines which rules apply.
Do all electric vehicles pay £0 in the first year?
Only pure electric vehicles with 0g/km CO2. Plug-in hybrids (PHEVs) emit some CO2 and pay £10-£130 in the first year depending on their emission band. All vehicles — including EVs — pay the standard £195/year from year two.
Should I buy an EV before April 2025 to lock in the exemption?
If you can register before April 2025, yes — you'll retain the £0 annual rate indefinitely. However, EVs have become significantly cheaper since 2020, and the road tax saving (max £195/year) is a small factor compared to fuel and maintenance savings. Weigh the total cost of ownership rather than road tax alone.
Conclusion
EVs registered from April 2025 pay £0 in the first year then £195/year from year two — the same as petrol cars. Pre-April 2025 EVs retain £0 indefinitely under grandfathering. The real EV tax advantage for 2026 is the 3% BiK rate for company car drivers. Use our UK car tax calculator to compare total costs across electric, petrol, and hybrid vehicles.