Road Tax on Electric Cars
A complete guide to EV road tax in the UK, including how electric vehicle road tax is calculated and how much it costs.
Last updated: Jun 26, 2025 • 5 min read
Summary
UK road tax, known officially as Vehicle Excise Duty (VED), is calculated based on the CO2 tailpipe emissions of the vehicle, its list price, and which year it was registered.
- Before April 2025, purely batter-electric vehicles (BEVs) were exempt from paying VED
- Electric cart tax works the same way as any other car, with VED costing EV owners £195 a year
- An Expensive Car supplement applies an additional rate of £425 to any new EV registered after April 2025 with a list price exceeding £40,000
What is electric vehicle road tax?
The UK’s VED, also known as road or car tax, is a tax used by the government to fund road maintenance and upgrades. It’s an annual payment that car drivers must pay if their car is used or parked on public roads. Prior to 2025, zero-emission vehicles, as well as electric cars, were exempt from paying road tax. But, as of 1st April 2025, EV owners have been required to pay it.
How Road Tax/Vehicle Excise Duty (VED) is calculated
Road tax is applied in bands, with these being based on a number of factors:
- The size of the engine
- Its fuel type
- Its tailpipe emissions
- The list price
It also matters when it was registered. Cars registered between 1st March 2001 and 31st March 2017 are split across 13 bands ranging from A to M, with lower emissions vehicles having lower road tax. Those registered from 1st April 2017 onwards are taxed in one of three bands – zero, standard, or premium.
To find out your car’s tax band, and how much it costs, you can check online by using your car’s registration date, which you can find in its V5C logbook.
Note: The government has recently announced the introduction of VED for zero emission vehicles from April 2025. For more specific details please see the Government VED page.
Do you have to pay road tax on an EV?
With very few exceptions, all vehicles driven on roads in the UK need to pay road tax, and EVs are no longer exempt from this. However, the road tax rate is significantly smaller for cheaper electric cars that cost less than £40,000 as vehicles with list prices above this need to pay a “luxury” car tax supplement.
How much will Road Tax/Vehicle Excise Duty (VED) for an electric car cost?
As of 1st April 2025, EVs are now required to pay VED. How much you pay depends chiefly on its emissions:
Standard rate (SR) 2023-24
| CO2 emissions (g/km) | First year rate | Standard rate (second year onwards)* |
| 0 | £10 | £195 |
| 1-50 | £110 | £195 |
| 51-75 | £130 | £195 |
| 76-90 | £270 | £195 |
| 91-100 | £350 | £195 |
| 101-110 | £390 | £195 |
| 111-130 | £440 | £195 |
| 131-150 | £540 | £195 |
| 151-170 | £1,360 | £195 |
| 171-190 | £2,190 | £195 |
| 191-225 | £3,300 | £195 |
| 226-255 | £4,680 | £195 |
| 256+ | £5,490 | £195 |
Zero emission cars (including BEVs)
For the first year of registration, new EVs registered after the 1st of April pay the lowest VED “showroom” rate of £10. This rate applies to any vehicle with CO2 emissions between 1 to 50g/km.
From the second year onwards, the standard rate applies, which is £195. This rate also applies to zero-emission cars that were first registered between 1st April 2017 and 31st March 2025.
Any zero emission cars that were registered before this – between 1st March 2001 and 30th March 2017 – will move from Band A to Band B, which is £20 a year.
Hybrid cars (including plug-in hybrids/PHEVs)
Hybrid cars, which use a mixture of petrol or diesel fuel and electric power, also need to pay road tax. They used to have a £10 annual discount, but this was removed, meaning the rate they pay now depends on when the vehicle was first registered.
Road tax rates for PHEVs registered before 1st April 2017 will depend on the car’s emissions. Tax bands for these can be found online on the gov.uk website. Hybrids registered after 1st April 2017 pay the standard rate of £195.
Note that because they also use fossil fuels, hybrid cars are also subject to Fuel Duty rates. This is a tax paid on petrol and diesel, which PHEVs used.
Expensive Car Supplement (cars over £40,000)
Any car, whether it’s a BEV, PHEV, or other, with a list price above £40,000 will have to pay an additional tax of £425. This is on top of the £195 standard rate, bringing the total road tax for “premium” cars to £620 per year.
What does this all mean for EV drivers?
Electric cars have long enjoyed exemption from road tax, so the addition of a £195 annual road tax is certainly going to impact EV drivers. However, they’re still fundamentally cheaper to run than petrol/diesel equivalents, and there are plenty of ways to save money charging and driving an electric vehicle:
- Charge at home: charging your car at home with a dedicated home charger is undoubtedly one of the cheapest ways you can keep your EV topped up
- Take advantage of overnight charging: homeowners on dual-rate energy tariffs can get cheaper energy rates overnight, helping them save on their charging costs by plugging in just before going to sleep. It’s also a green time to charge as energy demand is lowest, so you’ll be saving money and the planet
- Use government grants where possible: the government’s EV chargepoint grant reduces the cost of buying and installing a home charger by up to £350 for people living in rented properties or flats
Tip: one of the largest expenses of EV ownership is the cost of the charger. With Pod Drive, you’ll get a premium Pod Point charger with a lifetime warranty, low-cost charging, and up to 7,500 miles paid for in one all-inclusive EV smart charging subscription – all for just £40 a month and a one-off £99 joining fee! Find out more about Pod Drive today.