From April 2026, electric vehicles pay Vehicle Excise Duty (VED, or road tax) for the first time. If you bought your EV before this date, you’ve had a good run. If you’re buying now, here’s exactly what you’ll pay.
The Basic Numbers
Every electric car registered from 1 April 2025 onwards pays the standard rate of £195 per year from its second year onwards (rates as of April 2026). In the first year, you pay nothing, which is the same deal petrol and diesel cars get when they emit less than 1g/km of CO2, which obviously none of them do.
But there’s a catch for pricier models. Any car with a list price over £40,000 pays an additional £425 per year on top of the standard rate for five years, starting from the second year of registration. That’s a total of £620 per year, or about £52 per month.
This supplement applies whether your car runs on petrol, diesel, or electricity. A £45,000 BMW 3 Series and a £45,000 Polestar 2 both pay it. The difference is that the 3 Series also paid a first year rate based on its emissions (between £220 and £2,745 depending on the model), while the Polestar paid nothing.
What You’ll Actually Pay: Popular Models
We’ve looked at 50 of the most common EVs on UK roads. Here’s what their owners will pay in annual VED from year two onwards, based on list prices at the time of writing.
Under £40,000: £195 per year
Citroën ë-C3 (from £26,990): £195/year
MG4 SE (from £27,995): £195/year
Nissan Leaf (from £29,990): £195/year
Vauxhall Corsa Electric (from £31,895): £195/year
MG ZS EV (from £32,495): £195/year
Fiat 500 Electric (from £28,195): £195/year
Renault Megane E-Tech (from £36,995): £195/year
BYD Dolphin (from £26,195): £195/year
Vauxhall Astra Electric (from £39,995): £195/year
Citroën ë-C4 (from £36,990): £195/year
Over £40,000: £620 per year (for years 2-6)
Tesla Model 3 RWD (from £39,990): £195/year*
Tesla Model 3 Long Range (from £49,990): £620/year
Tesla Model Y RWD (from £44,990): £620/year
Volkswagen ID.4 (from £43,775): £620/year
Škoda Enyaq (from £42,575): £620/year
Hyundai Ioniq 5 (from £45,095): £620/year
Kia EV6 (from £45,995): £620/year
Polestar 2 Long Range Single Motor (from £44,950): £620/year
Ford Mustang Mach-E (from £48,950): £620/year
BMW i4 eDrive40 (from £54,980): £620/year
Audi Q4 e-tron (from £51,650): £620/year
Mercedes EQA (from £54,245): £620/year
Volvo EX40 (from £43,850): £620/year
Genesis GV60 (from £46,950): £620/year
BMW iX1 (from £49,950): £620/year
Jaguar I-Pace (from £69,995): £620/year
Audi Q8 e-tron (from £71,350): £620/year
Mercedes EQE (from £74,250): £620/year
BMW i5 (from £67,995): £620/year
Porsche Taycan (from £86,000): £620/year
*The base Model 3 sits just under the threshold, but many will have specced options that pushed them over £40,000. Check your actual purchase invoice, not the starting price.
More affordable models
Dacia Spring (from £17,995): £195/year
Smart #1 (from £39,950): £195/year
MG4 Trophy Extended Range (£35,495): £195/year
Kia Niro EV (from £38,795): £195/year
Hyundai Kona Electric (from £35,745): £195/year
Peugeot e-208 (from £32,395): £195/year
Peugeot e-2008 (from £36,350): £195/year
Jeep Avenger Electric (from £36,995): £195/year
Mini Electric (from £32,900): £195/year
Mazda MX-30 (from £32,895): £195/year
Premium models over £40,000
Tesla Model Y Long Range (from £52,990): £620/year
Volkswagen ID. Buzz (from £57,725): £620/year
Polestar 3 (from £75,900): £620/year
BMW iX3 (from £64,990): £620/year
Mercedes EQB (from £58,595): £620/year
Audi e-tron GT (from £104,950): £620/year
Lotus Eletre (from £89,500): £620/year
Nissan Ariya (from £44,950): £620/year
Renault Scenic E-Tech (from £37,995): £195/year
Cupra Born (from £36,575): £195/year
BYD Seal (from £45,695): £620/year
BYD Atto 3 (from £38,995): £195/year
The Five-Year Picture
Over five years of ownership (years 2 to 6, as year one is free), here’s what you’ll pay in total VED:
Cars under £40,000: £975 total (£195 × 5)
Cars over £40,000: £3,100 total (£620 × 5)
For comparison, a petrol Volkswagen Golf with a 1.5-litre engine emitting around 140g/km pays about £220 in first year VED, then £195 per year afterwards. Over the same five years, that’s £1,195 total. So an MG4 at £27,995 costs you £220 less over five years than an equivalent petrol car.
But a petrol BMW 3 Series at £42,000 pays around £600 in the first year, plus the expensive car supplement of £620 per year for five years, then back to £195. Total VED over six years: £3,895. The electric BMW i4 at £54,980 pays nothing in year one, then £620 for five years (£3,100), then drops to £195. Still cheaper than petrol, but only by £795 over six years, or about £11 per month.
What This Means for Your Budget
If you’re buying an EV under £40,000, VED adds £195 per year (about £16 per month) to your running costs from year two. That’s less than two charging sessions at a motorway rapid charger.
If you’re buying over £40,000, budget for £620 per year (about £52 per month) for five years. After year six, it drops to £195. This particularly stings for cars like the Volkswagen ID.4 or Škoda Enyaq, which aren’t exactly luxury motors but cross the threshold due to family-spec pricing.
One practical tip: if you’re choosing between trims and hovering near £40,000, check if dropping one option keeps you under the limit. Five years of VED savings (£2,125) might buy you a better home charger or several years of charging instead.
And if you’re salary sacrificing your EV through your employer, remember that VED is typically included in your monthly payment, so you won’t see a separate bill. But it’s worth checking, as some schemes pass the cost directly to you once the car is over a year old.
When the Expensive Car Supplement Ends
The £425 supplement disappears after five payments (years 2 to 6 of the car’s life). From year seven onwards, every EV pays the same £195 standard rate regardless of its original list price. A £75,000 Polestar 3 and a £27,000 MG4 pay identical VED from that point on.
This matters if you’re buying a nearly new EV. A three-year-old Ioniq 5 still has two years of the higher rate to run. A seven-year-old one doesn’t. Check the V5C registration date to see where you stand.
These rates will likely increase slightly each year in line with inflation (VED typically rises by RPI each April), but the structure stays the same. If you want to verify the exact rates for your vehicle or check whether your specific options pushed you over the £40,000 threshold, the list price used for VED purposes is shown on your V5C logbook or available from DVLA’s vehicle enquiry service.