Salary Sacrifice Electric Car Calculator UK 2026
Calculate your net monthly cost, income tax, and National Insurance savings for an EV salary sacrifice scheme. Updated for the 2026/27 tax year.
EV Salary Sacrifice Details
Enter your lease details and tax band to calculate your net cost
The total monthly lease cost before tax and NI deductions.
If unknown, use Annual Lease Cost (Monthly Cost x 12).
The UK BiK rate for electric cars is 2% for 2025/26.
The main rate of Employee NI is currently 8%.
Salary Sacrifice Results
Your net monthly cost and tax savings breakdown
Enter your lease details and tax band above, then click Calculate Net Cost to see your savings.
UK Electric Car BiK Rates
The Benefit in Kind (BiK) tax rates for fully electric vehicles over the next few years. Lower rates mean less tax to pay on your company car.
| Tax Year | EV BiK Rate | Annual Increase | Impact on Monthly Tax |
|---|---|---|---|
| 2024/25 | 2% | Frozen | Lowest possible tax |
| 2025/26 | 2% | Frozen | Lowest possible tax |
| 2026/27 | 3% | +1% | Slight increase |
| 2027/28 | 4% | +1% | Gradual rise |
| 2028/29 | 5% | +1% | Gradual rise |
| 2029/30 | 6% | +1% | Still highly competitive |
| 2030/31 | 7% | +1% | Approaching ICE parity |
Salary Sacrifice FAQ
Everything you need to know about electric vehicle salary sacrifice schemes, BiK tax, and National Insurance savings in the UK.
A salary sacrifice scheme allows you to give up a portion of your gross salary in exchange for a fully maintained electric vehicle. Because the payment is taken before tax and National Insurance, you reduce your taxable income, leading to significant monthly savings compared to paying for a car from your net income.
BiK tax is calculated by multiplying the car’s P11D value (its list price including options and VAT) by the current BiK percentage rate. For electric cars, this rate is currently 2% for the 2025/26 tax year. You then pay your marginal Income Tax rate (20%, 40%, or 45%) on this BiK value.
Yes. Because the lease payments are deducted from your gross salary before National Insurance is calculated, you save on Employee National Insurance contributions. The current main employee NI rate is 8%, meaning you keep 8% of your sacrificed salary in your pocket.
The P11D value is the official list price of the car, including VAT, delivery charges, and any optional extras, but excluding the first-year registration fee and annual car tax. It is the figure used by HMRC to calculate your Benefit in Kind tax.
Generally, yes. Even with the BiK tax you must pay on the car, the combined savings from Income Tax and National Insurance usually make a salary sacrifice EV significantly cheaper per month than buying a petrol or diesel car on a personal finance plan or paying from your post-tax income.