EV road tax guide – how much do electric cars have to pay?

In April 2025 the UK Government introduced major changes for anyone driving an electric car, with all of the UK's 1.7 million EVs liable to pay car tax for the first time.

Then, in the Autumn Budget 2025, the Chancellor announced another electric car tax in the form of a new mileage-based charge for EVs and plug-in hybrids - called eVED.

These policies have a big impact on electric vehicle running costs, and may even put some motorists off making the switch from internal combustion to battery power.

But how much road tax do EVs have to pay? How does the per-mile charge work? And is VED backdated to used electric cars?

We answer all the common questions regarding electric car road tax and the new rules in this one-stop EV tax guide.

eVED: How does pay-per-mile EV road tax work?

The Government has confirmed that, from April 2028, a pay-per-mile tax on both electric and plug-in hybrid cars will be introduced as part of an effort to address the loss in fuel duty from increasing EV sales.

This self-reported tax, dubbed 'eVED', will see electric car drivers charged at a rate of 3p per mile, and plug-in hybrid (PHEV) drivers charged at 1.5p per mile.

This means a motorist driving 10,000 miles a year in an EV will pay an additional £300 in tax per year, while PHEV drivers doing the same mileage will pay £150 per year.

The OBR estimates this tax represents roughly half the rate of fuel duty tax paid by petrol and diesel drivers.

A consultation into the introduction of eVED has been launched on the gov.uk website, seeking views on how to best implement the scheme.

The consultation states that motorists will also have their mileage checked annually. For cars more than three years old this is already done via the MOT.

For new cars, drivers will need to have their mileage checked around the first and second anniversary of the car's registration. It is not yet clear how these checked will be performed.

Electric vans, buses, motorcycles and HGVs will not be subject to eVED at its introduction because the EV transition in those categories is in its infancy.

How will you pay eVED pay-per-mile EV road tax?

To pay eVED pay-per-mile road tax, electric and plug-in hybrid car drivers will likely use the same DVLA system that's used by drivers to pay road tax. This is because the scheme is being administered by the DVLA, and the Government wants to "minimise administrative burden for motorists".

The eVED consultation document states that motorists "will estimate their mileage for the year ahead, pay an upfront charge based on their estimate of spread their payment across the year, and then submit their actual mileage at the end of the year."

This is said to be similar to how motorists estimate their mileage for car insurance purposes, but motorists will be reimbursed if they are found to have done less than the reported mileage in the annual check.

For new cars, dealers will have the option to pre-pay for a certain number of miles and bundle it into the purchase or leasing package for buyers.

The Government claims it has "ruled out charging tax based on when or where people drive, to protect motorists privacy". This means telematics, which track drivers activities, will not be mandated for eVED. An option to 'opt-in' to such a scheme is being considered.

There are no exemptions for schemes such as Motability, for example.

How much is my electric vehicle (EV) road tax in 2025?

For most electric car drivers, the cost of road tax (VED) in 2025 is £195 per 12 months.

Drivers of more expensive EVs also have to pay an Expensive Car Supplement, or 'Luxury Car Tax,' annually for five years. This adds £425 a year from the second year of the car's registration, and takes the total annual VED up to £620

In November 2025, the Government has changed the list price (the on-the-road car price) threshold at which this applies from £40,000 to £50,000 - but only for electric cars. This enables a much bigger proportion of new electric cars to be exempt from the Expensive Car Supplement

These changes are backdated to April 2025, meaning EV drivers who bought an electric car with a list price between £40,000 and £50,000 after that point will no longer have to pay the supplement.

If your electric car was registered before April 2017, your annual VED will be £20.

There is no exemption from VED for EV drivers, with free road tax abolished on 1 April 2025. 

*Cars with a list price of over £50,000 when new pay an additional rate of £425 per year on top of the standard rate, for five years. The five-year time limit starts from the second year after the car was first registered.

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All changes for electric vehicle road tax in 2025 listed

• New zero-emission cars registered on or after 1 April 2025 are liable to pay the lowest first-year rate of VED (which applies to vehicles with CO2 emissions 1 to 50g/km) currently £10 a year.
• From the second year of registration onwards, they will move to the standard rate, which is £195 a year after 1 April 2025
• Zero emission cars first registered between 1 April 2017 and 31 March 2025 also pay the £195 standard rate.
• The Expensive Car Supplement exemption for electric vehicles ended on 1 April 2025. New zero emission cars registered on or after 1 April will therefore be liable for the Expensive Car Supplement. The Expensive Car Supplement applies to electric cars with a list price exceeding £50,000 for the first five years the standard rate is paid. This is £425 a year from 1 April 2025, which means EV drivers with an 'expensive car' will pay £620 per year for road tax
• Zero and low emission cars first registered between 1 March 2001 and 30 March 2017 currently in Band A moved to the Band B rate, currently £20 a year
• Zero-emission vans moved to the rate for petrol and diesel light goods vehicles, currently £335 a year for most vans
• Zero-emission motorcycles and tricycles have moved to the rate for the smallest engine size, currently £25 a year
• Rates for Alternative Fuel Vehicles and hybrids will also be equalised

Why was road tax free on electric cars before 2025?

Prior to April 2025, electric cars were exempt from paying road tax (VED) for many years.

The idea behind it was to incentivise the uptake of EVs, helping reduce the UK's nationwide CO2 emissions, improve local air quality and encourage carmakers to invest in zero-emission technology.

Free road tax for EVs was also important in reducing the cost difference between petrol, diesel or hybrid vehicles and electric ones. EVs were significantly more expensive early on in the transition.

Back in 2020 there were less than 200,000 electric vehicles registered in the UK. Just five years later, that number is over 1.7 million.

Although the Government still intends to support the uptake of EVs, the 2025 road tax changes were introduced to make the system fairer for all and help boost revenue for the Treasury.

Do electric vehicles (EVs) need to be taxed?

Yes, almost all vehicles need to have been road taxed in order to drive on UK roads – including electric vehicles (EVs).

However, electric car drivers previously did not need to pay anything to tax their vehicle with the annual VED provided free of charge. In 2025, that all changed.

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What other EV running costs are there?

In addition to car tax, here are some of the annual payments that drivers of electric cars should be aware of.

1. Electricity costs: Charging an electric car at home will increase your electricity consumption. The cost will depend on the efficiency of your vehicle, local electricity rates, and the number of miles you drive. If you're unable to charge at home
2. Car insurance: EV insurance is something all drivers must have before they get behind the wheel. The cost of insuring an electric car can vary depending on factors such as your driving history, the specific vehicle model, and the insurance provider.
3. Maintenance: Electric cars generally have fewer moving parts and require less maintenance compared to traditional combustion engine vehicles. However, there may still be costs for routine car maintenance, such as tyre rotations, brake pad replacements, and fluid top-ups. The maintenance costs can vary based on the specific make and model of the electric car. Speak to your trusted local garage to get the best information possible on vehicle maintenance.
4. Company car tax: All company cars are a taxable benefit, so employees that have them must pay Benefit in Kind (BiK) tax. This also applies to electric vehicles, however they continue to be much cheaper in BiK than petrol, diesel or even hybrid cars - becoming the default choice for many businesses.

It's worth noting that government policies and incentives can change over time, so it's important to stay updated on the latest regulations and potential financial benefits available to electric vehicle owners in the UK.

What is electric vehicle (EV) road tax?

Road tax, also known as VED or car tax, is an annual payment imposed on motor vehicles that are used or parked on public roads in the UK.

It is a form of taxation used by governments to generate revenue and contribute to the costs associated with maintaining and improving road infrastructure.

Road tax is calculated based on emissions levels, and those with higher levels will pay more each year. This is because they contribute more to pollution and environmental impact. Since 2025, zero emission vehicles and electric cars have been required to pay for road tax (VED). 

Does every vehicle owner have to pay road tax in the UK?

According to the Government, some vehicles are exempt from paying vehicle tax each year.

These include vehicles used by a disabled person, historic vehicles built before 1985, vehicles used for agriculture and even steam-powered vehicles.

However, you must tax your vehicle even if you do not have to pay.

This is a legal requirement for all owners – ignoring this will lead to legal issues with the police.

Do electric vans and trucks pay road tax?

Yes, all zero-emission vans are no longer exempt from paying road tax as of April 2025, just like cars.

Light Goods Vehicles (with a gross weight under 3,500kg) registered after 1st March 2001 must pay £345 a year in road tax (VED). This now includes electric vans.

Heavy Goods Vehicles (HGVs) under 12,000kg in gross weight pay a lower level of road tax, however, and electric trucks weighing over 3,500kg continue to be exempt from VED.