Do you pay road tax on an electric car?

Unsure if you need to pay road tax on an electric car? Get up to speed with the latest rules on EV taxation and what they mean for you.

If you’re thinking about switching to an electric car, one of the first questions you’ll probably ask is: do you pay road tax on an EV?

Until recently, the answer was a simple “no” – but that’s now changed. Electric cars are no longer exempt from Vehicle Excise Duty (commonly known as road tax), marking the end of one of the key incentives for zero-emission motoring.

Confused? We break down exactly what road tax is, and how the latest changes affect electric car owners.

What is road tax?

Let’s get a pedantic point out of the way – road tax isn’t really road tax at all, it’s Vehicle Excise Duty (VED). The revenue from VED isn’t ringfenced to pay for roadbuilding and repairs, so calling it road tax is technically misleading.

Instead, ‘road tax’ (as almost everyone calls it) is paid by most car owners as a way for the government to raise revenue, and it’s structured in a way to encourage people to drive lower-emission vehicles.

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How is road tax calculated?

When you buy a car, the first 12 months of VED are included in the buying price. How much you pay depends primarily on the car’s carbon dioxide (CO2) emissions, with higher-polluting cars paying more in their first year.

Since April 2025, the rules are:

• Fully electric cars now pay £10 for their first year of road tax. They are no longer exempt.
• Cars emitting 1–50g/km of CO2, mostly plug-in hybrids, pay £110 in year one.
• Cars emitting 51–75g/km pay £130.
• Cars that emit over 75g/km, usually conventional petrol and diesel models, face much higher first-year charges – ranging up to £5,490for the most polluting cars.

From the second year onwards, all cars, whether petrol, diesel, hybrid, or electric, pay a flat annual rate of £195. This standardises the tax across all vehicle types, removing previous discounts for hybrids and exemptions for electric vehicles.

There’s an additional charge for pricier vehicles: any car with a list price over £40,000 must pay an extra £425 per year, from years two to six of ownership. Electric cars above this threshold also come under this so-called expensive car supplement.

These rules apply to cars registered since April 2017. Older vehicles, registered between March 2001 and March 2017, are taxed differently based on CO2 emissions bands – with most electric cars in this group now paying a modest £20 per year.

So, do you pay road tax on electric cars?

Yes, you have to pay road tax on an electric car.

If you buy a new electric car, you’ll pay £10 in the first year, then £195 per year after that. If the car costs more than £40,000, you’ll also pay an extra £425 a year for years two to six.

For electric cars registered between 2017 and 2025, the road tax is £195 a year, plus the extra charge if the car costs over £40,000. Meanwhile, older electric cars (registered before 2017) pay just £20 a year.

Even with these changes, electric cars still pay less road tax than most petrol or diesel cars. They’re cheaper to run overall, and if you use one as a company car, there are good tax benefits too.

Road tax on electric cars FAQs

Do you pay road tax on electric cars over £40,000?

Yes, electric cars with a list price over £40,000 that are registered on or after 1 April 2025 will be subject to the Expensive Car Supplement of £425 per year, for five years starting from the second year of registration.

How much is road tax on an electric car?

If your electric car was registered after 1 April 2025, you’ll pay £10 in the first year of registration, then £195 a year from the second year onward. For EVs registered between 2017 and 2025, the road tax is a flat £195 annually. Older electric cars registered before April 2017 pay just £20 per year.

Do hybrid cars need to pay road tax?

Yes, hybrid owners do pay road tax. The amount depends on the car’s emissions and when it was registered. For the first year, hybrids emitting 1–50g/km CO2 pay £110, while those emitting 51–75g/km CO2 pay £130, with prices increasing with higher emissions. From the second year onward, hybrids pay the same flat rate as petrol, diesel, and electric cars – £195 per year. If a hybrid car costs over £40,000, it’s also subject to the £425 Expensive Car Supplement for five years, just like other fuel types.

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