Tax and ownership costs
Electric Car Road Tax: What Every EV Owner Now Pays
Electric cars stopped being exempt from Vehicle Excise Duty in April 2025. For 2026/27, most newer EVs pay £200 a year after their first licence. Some cars above the £50,000 list-price threshold also pay the £440 expensive car supplement.
Electric car road tax rates for 2026/27
The tax exemption for electric cars ended on 1 April 2025. The rates below apply from 1 April 2026 to 31 March 2027.
Main road tax rates for zero-emission cars in 2026/27
| EV position | Annual VED | What applies |
|---|---|---|
| First licence for a new EV | £10 | Zero-emission car first registered on or after 1 April 2025 |
| Standard rate after first licence | £200 | Main annual rate for newer electric cars |
| Standard rate plus supplement | £640 | Qualifying EV above £50,000 during the five supplement years |
Vehicle type and registration date can change the result. These figures apply to passenger cars, not every electric van or motorcycle.
How registration date changes the bill
EVs registered on or after 1 April 2025
A new zero-emission car pays £10 for its first vehicle licence. From the second licence it moves to the standard £200 rate. A qualifying expensive car supplement may also begin at that point.
EVs registered from 1 April 2017 to 31 March 2025
These cars moved to the standard annual rate when the exemption ended. They do not enter the new EV expensive car supplement solely because they cost more than £50,000. The EV threshold rule applies to zero-emission cars first registered from 1 April 2025.
EVs registered before 1 April 2017
Older electric cars now use the tax structure linked to their original registration period. Cars registered from March 2001 to March 2017 entered the lowest paid CO2 band. Very early vehicles use the older system. Check the registration rather than assuming every older EV has the same bill.
The £50,000 electric car threshold
The expensive car supplement threshold is now higher for zero-emission cars. For a vehicle licence beginning on or after 1 April 2026:
- A qualifying zero-emission car pays the supplement only when its original list price was more than £50,000.
- The threshold remains more than £40,000 for petrol, diesel and hybrid cars.
- The supplement is £440 a year for five years, starting from the second vehicle licence.
This means a qualifying EV pays £640 a year during those five years: the £200 standard rate plus the £440 supplement.
The original list price matters, not used value
The threshold uses the manufacturer list price when the vehicle was first registered, including factory-fitted options. It is not based on the price you paid, a discount from the dealer or the car's current used value.
A used EV bought for £30,000 can therefore still carry the supplement if its qualifying original list price exceeded £50,000. A private number plate or later sale does not reset the five-year period.
Annual, six-month and Direct Debit costs
Paying once for 12 months is the cheapest option. Direct Debit and six-month choices carry a surcharge.
2026/27 EV tax payment options
| Payment option | Standard EV | EV with supplement |
|---|---|---|
| Single 12-month payment | £200 | £640 |
| Single 6-month payment | £110 | £352 |
| 12 monthly Direct Debit total | £210 | £672 |
| 6-month Direct Debit total | £105 | £336 |
The supplement column applies only during the five additional-rate years. DVLA payment availability can depend on the vehicle and keeper record.
Check an electric car by registration
The badge on the boot does not prove the tax rate. Plug-in hybrids are not zero-emission cars for the £50,000 threshold, and registration dates change the rules. Enter the registration in the free Caroat tax calculator to check the vehicle details and current calculation.
Sources
- Vehicle tax for electric, zero and low emission vehiclesDVLA and GOV.UK
- Rates of vehicle tax from April 2026DVLA
- Expensive car supplement threshold for zero-emission carsHM Revenue and Customs
- Finance Act 2026, section 97UK Parliament
FAQ
Do electric cars pay road tax in 2026?
Yes. Electric cars are no longer exempt from Vehicle Excise Duty. For 2026/27, a new zero-emission car pays £10 for its first licence and then the £200 standard annual rate.
Which electric cars pay the expensive car supplement?
A zero-emission car first registered on or after 1 April 2025 pays the supplement if its original list price exceeded £50,000. It applies for five years from the second licence. The threshold remains £40,000 for cars with CO2 emissions above zero.
Do used electric cars pay road tax?
Yes. EVs registered from 1 April 2017 to 31 March 2025 now pay the standard annual rate. Older EVs are placed into the tax system for their registration period. Check the registration because age and vehicle type affect the exact amount.
Can electric car tax be paid monthly?
Yes. Eligible keepers can pay by monthly Direct Debit, but the total is 5% higher than a single annual payment. A six-month payment also costs more proportionally than paying for 12 months at once.