Do Electric Cars Have To Pay Road Tax?
Yes, from 1 April 2025 all electric cars pay Vehicle Excise Duty, commonly known as road tax. The previous full exemption for zero-emission vehicles ended following the 2022 Autumn Statement, and electric cars now pay VED like any other vehicle on UK roads.
Before April 2025, fully electric vehicles paid nothing in road tax. That exemption was designed to encourage EV adoption during the early years of the transition away from petrol and diesel, but the Treasury removed it as electric car sales grew and the revenue gap widened.
The amount you pay depends on when your car was first registered and its list price. Most electric car owners pay £195 per year at the standard rate, with a higher rate for vehicles that cost over £50,000 when new.
Your car insurance costs are calculated separately and are not affected by VED changes.
Yes, since 1 April 2025. The zero-emission exemption ended and electric cars now pay Vehicle Excise Duty like everything else. The detail that catches people out is the expensive car supplement: a car priced above the threshold pays a substantial extra charge on top of the standard rate for five years, and electric models cross it easily. Check the list price, not what you paid.
Compare electric car insurance and check the running costs properly.
How much road tax do electric cars pay?
Most electric car owners pay £195 per year at the standard rate. The exact amount depends on whether the car was registered before or after 1 April 2025, and whether its list price exceeds the £50,000 threshold for the Expensive Car Supplement.
What do existing electric car owners pay?
Zero-emission cars registered between 1 April 2017 and 31 March 2025 now pay the standard rate of £195 per year. These vehicles were previously exempt and paid nothing in VED.
The change applied automatically from April 2025. Owners did not need to take any action, and the DVLA sent V11 reminder letters with the new amount due.
What do new electric car buyers pay?
New zero-emission cars registered from 1 April 2025 onwards pay a first-year rate of £10, which is the lowest emissions band. From the second year onwards, the standard annual rate of £195 applies.
The £10 first-year rate is a considerable saving compared to petrol and diesel cars, which can pay anywhere from £10 to over £2,000 in year one depending on their CO2 emissions.
What is the expensive car supplement?
Electric cars with a list price exceeding £50,000 when new pay an additional £440 per year on top of the standard rate. This brings the total to £635 per year for the first five years that the standard rate is paid.
Which electric cars exceed the threshold?
Many popular electric models fall above the £50,000 mark. Higher-specification Tesla Model 3 and Model Y variants, BMW iX models, Mercedes EQC, and Audi Q4 e-tron S-line trims all exceed the threshold depending on options.
The supplement is based on the published list price when new, not what you actually paid. A discounted purchase or a second-hand deal does not change the list price used for the calculation, so a used EV bought for £30,000 that originally listed at £55,000 still attracts the supplement.
How does electric car road tax compare to petrol and diesel?
Electric cars still pay less road tax than most petrol and diesel vehicles, particularly in the first year when emissions-based rates apply. From year two onwards, all vehicle types pay the same £195 standard rate.
Where do electric cars still have an advantage?
| Vehicle type | First-year rate | Standard rate (year 2+) | Expensive Car Supplement |
| Electric (zero emission) | £10 | £195 | £440/year if list price over £50,000 |
| Low-emission petrol (1-50g CO2) | £10-£30 | £195 | £440/year if list price over £50,000 |
| Mid-range petrol (101-150g CO2) | £190-£680 | £195 | £440/year if list price over £50,000 |
| High-emission diesel (over 255g CO2) | £2,000+ | £195 | £440/year if list price over £50,000 |
The main saving is in year one, where an electric car pays £10 compared to potentially thousands for a high-emission petrol or diesel vehicle. After the first year, the standard rate is identical across all fuel types.
Running costs extend beyond road tax. Our guide on car insurance costs in the UK explains how premiums are calculated, including factors specific to electric vehicles such as higher repair costs and battery replacement.
Do plug-in hybrids pay road tax?
Yes, plug-in hybrid electric vehicles have never been exempt from road tax because they have a combustion engine and produce measurable CO2 emissions. Their first-year rate depends on their emissions band, and from year two they pay the standard £195.
How are PHEV rates calculated?
PHEVs are taxed on the same emissions-based scale as conventional petrol and diesel cars. A PHEV with CO2 emissions of 25g/km pays a lower first-year rate than one producing 75g/km, but neither qualifies for the £10 zero-emission band.
The Expensive Car Supplement applies equally to PHEVs if their list price exceeds £50,000. Many premium plug-in hybrids fall above this threshold, so factor in the additional £440 per year when calculating five-year running costs.
Do you still need to tax an electric car?
Yes, every vehicle kept on a public road must be taxed, regardless of fuel type. If you do not tax your vehicle, it must have a SORN in place declaring that it is kept off the public road.
What happens if you do not tax your vehicle?
Failing to tax a vehicle that does not have a SORN can result in a fine of up to £1,000. The vehicle may also be clamped or impounded by the DVLA, and this applies to electric vehicles exactly as it does to petrol and diesel cars.
Vehicle tax is managed entirely online or by phone through the DVLA. The paper tax disc was abolished in October 2014, and tax status is now checked electronically by the DVLA and police.
Our guide on taxing a car without an MOT explains the rules for vehicles that need both.
Are any vehicles still exempt from road tax?
Some vehicles remain exempt from VED, but the exemption no longer applies to electric cars based solely on their zero-emission status. The remaining exemptions cover specific categories of vehicle and owner.
What exemptions still apply?
Historic vehicles manufactured before 1 January 1977 are exempt from VED entirely. Vehicles used by disabled people receiving certain qualifying benefits may also be exempt, as are certain agricultural vehicles used exclusively for farming purposes.
Electric cars no longer qualify for exemption on the basis of being zero-emission. The only way an EV could be exempt is if it falls into one of the other categories, such as the historic vehicle exemption for pre-1977 models.
Frequently Asked Questions (FAQs)
Yes, from 1 April 2025 all electric cars pay VED regardless of when they were registered. The previous full exemption has ended, and existing EVs pay the standard rate of £195 per year.
It is based on the published list price when the vehicle was new, not what you actually paid. A discounted or second-hand purchase does not change the list price used for the supplement calculation.
Yes, hydrogen fuel cell vehicles are classed as zero-emission and follow the same VED rules as electric cars. From April 2025, they pay the same rates as battery electric vehicles.
Yes, any remaining full months of tax are automatically refunded by the DVLA when you sell, transfer, or scrap the vehicle. Road tax does not transfer to the new owner.
If your electric car is not taxed and does not have a SORN, you can be fined up to £1,000. The vehicle may also be clamped or impounded, and this applies to all vehicles regardless of fuel type.