Electric Car Tax Benefit Calculator
Estimate the Benefit-in-Kind tax on an electric company car and see exactly how much you save each year compared to an equivalent petrol or diesel car.
Calculate Your EV Tax Saving
Enter your car’s list price and tax details to see your electric company car Benefit-in-Kind bill, and how it stacks up against a petrol or diesel car of the same value.
Your Car & Tax Details
Enter the figures for your company car
Tax Benefit Evaluation
Estimated BiK cost and annual savings
Electric Car BiK Rate Schedule
HMRC’s published Benefit-in-Kind rate for fully electric company cars, by tax year.
| Tax Year | Vehicle Type | BiK Rate |
|---|---|---|
| 2026/27 | Fully electric (zero-emission) | 4% |
| 2027/28 | Fully electric (zero-emission) | 5% |
| 2028/29 | Fully electric (zero-emission) | 7% |
| 2029/30 | Fully electric (zero-emission) | 9% |
| 2026/27 | Petrol / diesel (typical range) | 25%–37% |
Electric Car Tax FAQ
Everything you need to know about company car tax on electric vehicles in the UK.
For the 2026/27 tax year, fully electric company cars are taxed at a BiK rate of 4%, one of the lowest rates of any vehicle type. This is scheduled to rise gradually to 5% in 2027/28, 7% in 2028/29, and 9% in 2029/30 under HMRC’s published multi-year plan.
BiK tax is worked out by multiplying the car’s P11D value (its list price including VAT and options) by the appropriate BiK percentage for the tax year, then multiplying that figure by your personal income tax rate, typically 20%, 40%, or 45%. The result is the amount of extra tax you pay for having the car as a benefit.
Electric cars sit in a much lower BiK band than petrol or diesel cars, which can be taxed at rates up to around 37%. On a similarly priced car, this typically means an electric company car costs several hundred to several thousand pounds less per year in personal tax, depending on the car’s value and your tax band.
Yes. Employers pay Class 1A National Insurance Contributions on the taxable BiK value of a company car, currently at a rate of 15%. Because an electric car’s taxable BiK value is much lower than a petrol equivalent, the employer’s National Insurance bill is correspondingly lower too.