For many years, one of the key financial advantages of owning an electric vehicle (EV) was that it was exempt from Vehicle Excise Duty (VED), more commonly known as road tax. However, that changed on 1 April 2025, when the Government introduced new rules requiring most electric vehicles to pay VED for the first time.
Whether you're considering leasing an EV or already drive one, it's important to understand how the latest road tax rules could affect you.
In this guide, we'll explain how much electric vehicles pay, which drivers are affected and what the rules mean in 2026.
The introduction of road tax for electric vehicles reflects the growing number of EVs on UK roads. As more motorists make the switch from petrol and diesel cars, the Government has updated the Vehicle Excise Duty (VED) system to ensure all drivers contribute towards maintaining the UK's road network.
Before April 2025, most electric vehicles were exempt from VED, while owners of petrol, diesel and hybrid vehicles continued to contribute through annual road tax payments. With EV adoption continuing to increase, that exemption was removed as part of a move towards a more consistent and sustainable taxation system.
Although EVs are now subject to road tax, they continue to play an important role in reducing transport emissions and remain an attractive option for many drivers.
How much road tax you'll pay depends on when your electric vehicle was first registered.
Electric vehicle registration date:
| Road tax (VED):
|
|---|---|
Registered on or after 1 April 2025 | £10 in the first year, then £200 per year from the second year |
Registered between 1 April 2017 and 31 March 2025 | £200 per year |
Registered between 1 March 2001 and 31 March 2017 | £20 per year |
These rates apply whether your electric vehicle is owned outright, financed or leased.
Some electric vehicles may also be subject to the Expensive Car Supplement (ECS).
If an EV registered on or after 1 April 2025 has a list price of more than £50,000, drivers will need to pay the additional supplement for five years, beginning from the second year the vehicle is taxed.
It's worth noting that the list price refers to the manufacturer's recommended retail price (RRP), including optional extras, rather than the price you actually pay.
Yes. The changes don't just apply to newly registered electric vehicles.
If your EV was first registered before 1 April 2025, you'll now need to pay Vehicle Excise Duty (VED) when you renew your tax. The amount payable depends on the vehicle's original registration date, not when you bought or leased it.
As a result, many drivers who previously benefited from free road tax will now need to pay VED each year.
The VED changes also affect hybrid vehicles.
Previously, alternatively fuelled vehicles (AFVs), including hybrids, benefited from a small annual road tax discount. However, this incentive was removed from 1 April 2025, meaning most hybrid vehicles now pay the same standard annual VED rate as their petrol and diesel counterparts.
While the introduction of road tax does increase the cost of owning an electric vehicle, it's only one part of the overall running costs.
Many EV drivers continue to benefit from lower day-to-day expenses thanks to cheaper charging, reduced servicing requirements and fewer moving mechanical parts than petrol or diesel vehicles. Depending on where and how you charge, these savings can help offset the cost of road tax.
As battery technology continues to improve and more affordable models enter the market, EVs remain a popular choice for drivers looking to reduce both their emissions and, in many cases, their running costs.
As the transition to electric vehicles continues, the Government is expected to keep the Vehicle Excise Duty (VED) system under review.
While no further changes have been confirmed, motorists should keep an eye on future Budget announcements, as VED rates and vehicle taxation can be updated each year.
“Road tax is now another cost for electric vehicle drivers to consider, but it shouldn't put people off making the switch. For many motorists, the lower running costs, reduced maintenance and environmental benefits of an EV continue to outweigh the additional annual tax.”
FAQ's
Yes. Since 1 April 2025, most electric vehicles have been required to pay Vehicle Excise Duty (VED), with the amount depending on when the vehicle was first registered.
Most electric cars now pay the standard annual VED rate after their first year, although older EVs registered before April 2017 pay a reduced rate.
Yes. Road tax still applies to leased electric vehicles, although it's often included within the leasing arrangement. Check your lease agreement to see what's covered.
The Expensive Car Supplement is an additional charge applied to new vehicles with a list price above £50,000. From April 2025, eligible electric vehicles are also subject to this charge.
Originally posted: 30th July 2026