Electric Vehicle Tax Guide
Understand how electric cars are taxed in the UK. Estimate your annual road tax and company car Benefit-in-Kind bill under current rules.
Calculate Your EV Tax
Enter your electric vehicle’s list price and how you use it to estimate your annual Vehicle Excise Duty (road tax) and, if applicable, your company car Benefit-in-Kind income tax.
Vehicle & Usage Details
Enter your EV’s price and ownership type
Tax Evaluation
Estimated annual tax for your electric vehicle
Current EV Tax Rates
Key UK tax figures affecting electric vehicles, correct as of the latest published DVLA and HMRC guidance.
| Tax / Charge | Applies To | Rate |
|---|---|---|
| VED first-year rate | New EVs registered from 1 April 2025 | £10 |
| VED standard rate | EVs from second year of registration | £195/year |
| Expensive car supplement | EVs with list price over £40,000 | +£425/year (years 2–6) |
| Company car BIK rate | Electric company cars, 2024/25 | 2% of P11D value |
| Company car BIK rate | Electric company cars, 2025/26 | 3% of P11D value |
| Company car BIK rate | Electric company cars, 2026/27 | 4% of P11D value |
Electric Vehicle Tax FAQ
Everything you need to know about how electric cars are taxed in the UK.
Since 1 April 2025, electric cars are no longer exempt from Vehicle Excise Duty. New EVs registered on or after that date pay a lowest first-year rate, then move to the standard annual rate, and may also incur the expensive car supplement if the list price is over £40,000.
Benefit-in-Kind (BIK) tax is the income tax paid by an employee on the taxable value of a company car provided for private use. Electric vehicles use a separate BIK percentage banding that is significantly lower than for petrol or diesel cars, making them attractive as company vehicles.
Company car tax is calculated by multiplying the vehicle’s P11D value by the applicable BIK percentage for electric cars, then multiplying that figure by the employee’s income tax rate (20%, 40%, or 45%).
Yes. From April 2025, electric cars with a list price above £40,000 are subject to the expensive car supplement for the first five years of standard rate payments, in the same way as petrol and diesel vehicles.