Electric Car Tax 2025 UK | Full Rate Guide
EV Charger Guidance • Page 41

How Much Will
Electric Car Tax
Be in 2025?

From 1 April 2025 UK electric cars pay £190 standard rate VED. Premium EVs over £40,000 list price also pay the £410 expensive car supplement for years 2 to 6. New EVs pay £10 in their first year. Here is the full UK EV tax rate guide for 2025 and beyond.

Authored by: NAPIT Approved Engineers
Reviewed: April 2026
Coverage: Bedford, Milton Keynes, Northampton, Luton
Quick answer

From 1 April 2025: New EVs pay £10 first-year rate, £190 standard rate from year 2. EVs over £40,000 list price also pay £410 expensive car supplement for years 2 to 6 (£600 total per year). Pre-2017 EVs pay £20 per year. EVs registered between April 2017 and March 2025 pay the £190 standard rate. Older EVs do not pay the expensive car supplement because the original 5-year window has passed.

£190/yr

Standard Rate

All UK EVs from year 2 of registration pay £190 standard VED. Same rate as petrol and diesel standard band.

£10yr 1

First-Year Rate

New UK EVs registered from April 2025 pay £10 in their first year. The lowest first-year band available.

£410/yr

Expensive Car Supplement

Additional rate for EVs costing over £40,000 list price. Applied for years 2 to 6 of registration. Total £600/yr.

£20/yr

Pre-2017 EV Rate

EVs registered before April 2017 pay the lower historic rate of £20 per year (vs £190 for newer EVs).

In this guide

What this page covers

01Standard rates explained 02Expensive car supplement 03First-year rates 04Pre-2025 EV transition

What UK EV drivers actually pay in 2025 and 2026

The April 2025 changes ended six years of UK EV VED exemption. The replacement rules apply to all UK EVs including those registered before April 2025. Here are the specific bands and rates that apply.

New EVs registered from April 2025

First year of registration: £10 flat rate. This is the lowest first-year band available, recognising that EVs still produce no tailpipe emissions even though they now pay VED.

Year 2 onwards: £190 per year standard rate. Same rate as petrol and diesel cars in the standard band. The £190 rate applies to all EVs regardless of size or value (until the expensive car supplement kicks in for premium models).

The expensive car supplement

EVs with a list price over £40,000 at first registration pay an additional £410 per year for years 2 to 6 of registration. Total annual cost during this 5-year window is £600 per year. After year 6 the supplement ends and the EV pays the standard £190 rate only.

The £40,000 threshold is based on list price including any options at first registration. Trade-in value, dealer discounts and finance arrangements do not affect the threshold. UK EVs typically affected include Tesla Model Y Long Range, BMW iX, Mercedes EQE, Audi Q4 e-tron, Porsche Taycan, Hyundai Ioniq 5 in higher trims and most premium SUVs.

EVs registered between April 2017 and March 2025

These EVs were exempt from VED while registered. From 1 April 2025 they became liable for the standard £190 per year rate. They do not pay the expensive car supplement because the original 5-year window expired during their exempt period. A 2022 Tesla Model 3 originally exempt now pays £190 per year flat rate.

Pre-2017 EVs

EVs registered before April 2017 pay the historic lower band of £20 per year. This applies to early Nissan Leafs, BMW i3s and similar. The £20 rate reflects the older VED system that classified vehicles by emissions and engine size before the 2017 rule changes. Pre-2017 EVs benefit from the historic rates rather than the new £190 standard.

Future rate changes

UK VED rates are reviewed annually at each Budget. Rates typically increase with inflation. The £190 standard rate could rise to £200 or £210 in future Budgets. The expensive car supplement is also subject to potential adjustment. The general trend is for UK road tax to rise gradually over time rather than fall.

Authoritative context

UK Vehicle Excise Duty rates are set by HM Treasury under the Finance Act and administered by the Driver and Vehicle Licensing Agency (DVLA). The April 2025 changes were announced in the November 2022 Autumn Statement and confirmed in the March 2023 Spring Budget. The Office for Budget Responsibility tracks projected revenue from the changes. Vehicle tax rates are published on gov.uk and updated annually. UK road tax is paid annually, every six months or monthly by direct debit at the gov.uk vehicle tax service. Compliance is enforced through Automatic Number Plate Recognition (ANPR) cameras and the central DVLA database.

UK EV VED rates 2025/2026

New EV first year (under £40k)
First-year rate for newly registered EVs from April 2025. Lower than petrol equivalents which can reach £2,605 first year.
£10/yr
Standard rate (year 2 onwards)
All UK EVs pay this rate from year 2 of registration. Same rate as petrol and diesel standard band.
£190/yr
Premium EV over £40k (years 2-6)
Standard rate combined with expensive car supplement of £410. Premium EVs pay this for 5 years.
£600/yr

Year-by-year UK EV VED for new £45k EV (registered April 2026)

1

Year 1 (April 2026 to April 2027)

First-year rate of £10. Total VED for first year: £10.

2

Year 2 to Year 6 (April 2027 to April 2032)

Standard rate of £190 with expensive car supplement of £410 because list price exceeded £40k. Total: £600 per year for 5 years.

3

Year 7 onwards (April 2032+)

Expensive car supplement ends. Back to standard £190 per year for the remaining ownership period.

4

Total VED across first 7 years

£10 + (£600 x 5) + £190 = £3,200 in the first 7 years of ownership for a premium UK EV.

Key UK EV tax rate facts for 2025/2026

April 2025 ended exemption

UK EVs lost their VED exemption from 1 April 2025. All EVs now pay annual road tax under the new rates.

£190 standard rate

Same as petrol and diesel standard band. The vast majority of UK EVs pay this from year 2 onwards.

£40k+ EVs pay £600/yr

The expensive car supplement adds £410 per year for years 2 to 6. Targets premium EVs disproportionately.

Older EVs benefit from old rates

Pre-2017 EVs pay only £20 per year under the historic system. EVs from April 2017 to March 2025 pay £190 standard.

Petrol equivalent (Polo or Golf) VED

  • First year: £540 to £1,650 (emissions-based)
  • Standard rate: £190 per year
  • Over £40k surcharge: £410/yr (years 2-6)
  • Older cars pre-2017: varies
  • Annual cost predictable
  • Same standard rate from year 2

EV equivalent VED

  • First year: £10 (flat rate)
  • Standard rate: £190 per year
  • Over £40k surcharge: £410/yr (years 2-6)
  • Older EVs pre-2017: £20 per year
  • Annual cost identical to petrol from year 2
  • Same standard rate as petrol from year 2

Tax rates are one factor in UK EV ownership economics. The wider EV Charger Guidance hub covers running cost, home charger install, the buying decision and the dozens of practical questions UK drivers ask about everyday EV ownership.

If you want the broader road tax picture, our guide on do electric cars pay road tax covers the rules. The ULEZ angle is in do electric cars pay ulez. For Congestion Charge see do electric cars pay congestion charge.

Road Tax Rules

Do electric cars pay road tax

 ULEZ

Do electric cars pay ulez

 Congestion Charge

Do electric cars pay congestion charge
Frequently asked

Common questions

Why did EVs lose their VED exemption?
The Treasury judged that EV adoption had grown sufficiently to no longer require the financial incentive. EVs accounted for around 18 to 20 percent of new UK car sales by 2024 which the government considered enough market traction. EV revenue from VED helps offset falling fuel duty income as the petrol fleet shrinks. The change was announced in November 2022 giving the industry over 2 years notice before the April 2025 implementation.
Do I really have to pay £600 per year on my premium EV?
Yes if it cost over £40,000 at first registration. The £190 standard rate combined with £410 expensive car supplement totals £600 per year for years 2 to 6. After year 6 you pay just £190 per year. The supplement is fixed by list price, not current value, so depreciation does not change the rate. UK Tesla Model Y Long Range, BMW iX, Mercedes EQE and most premium SUVs trigger this band.
What about my pre-2017 EV?
Pre-April 2017 EVs pay the historic lower rate of £20 per year. This was the lowest band under the old emissions-based system. Older Nissan Leafs, BMW i3s, Renault Zoes and similar benefit from this rate. Check your registration date on the V5C logbook. Pre-2017 means registered before 1 April 2017, not before 2017 calendar year.
Will VED rates rise further for EVs?
Likely yes over time. UK VED rates are reviewed annually at each Budget and typically rise with inflation. The £190 standard rate could become £200 or £210 in future Budgets. The £40,000 expensive car threshold may also be adjusted. Some commentators expect specific EV rate adjustments as the EV fleet grows. The general trend is for UK road tax to rise gradually.
Is salary sacrifice EV still attractive after the VED change?
Yes, very. The £190 VED is a small cost compared to the income tax and National Insurance savings on salary sacrifice. Benefit-in-Kind (BIK) tax for EVs remains very low (currently around 3 percent vs 25 to 37 percent for petrol cars). The total tax saving on salary sacrifice EVs typically runs £200 to £400 per month for higher-rate UK taxpayers. The £190 VED barely dents this advantage.

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