From 1 June 2026, electric vehicle owners will start paying Vehicle Excise Duty (VED, often called road tax or car tax) for the first time in the UK. If you own or are considering an EV, here’s exactly what you’ll pay and how it compares to petrol and diesel equivalents.
The New Rates: Three Categories of EV Owners
The amount you’ll pay depends on when you registered your EV and how much it cost when new.
EVs registered before 1 April 2025
If your EV was registered before 1 April 2025, you’ll pay the standard rate of £195 per year (about £16 per month) from June 2026 onwards. This is the same annual rate that petrol and diesel cars currently pay after their first year.
So if you bought a Nissan Leaf or MG4 in 2024, for example, you’ll start paying £195 annually from next month.
EVs registered from 1 April 2025 onwards with a list price under £40,000
For EVs registered from April 2025 with an original list price below £40,000, owners will pay a first-year rate, then the standard £195 annual rate from the second year onwards.
The first-year rate for zero-emission vehicles is £10. So if you bought a new MG4 SE (list price around £26,995) in May 2025, you’d pay £10 for your first year’s VED, then £195 per year after that.
EVs registered from 1 April 2025 onwards with a list price of £40,000 or more
This is where costs increase significantly. EVs with an original list price of £40,000 or above face an additional “expensive car supplement” of £425 per year for five years, on top of the standard rate.
That means you’ll pay £10 in the first year, then £620 per year (that’s £195 standard rate plus £425 supplement) for years two through six. From year seven onwards, you drop back to the standard £195 annual rate.
For context, if you bought a Tesla Model Y Long Range (list price around £54,990) in April 2025, you’re looking at paying £3,100 in VED over the first six years, or about £517 per year on average. A Polestar 2 Long Range Single Motor (list price approximately £44,950) would face the same charges.
How This Compares to Petrol and Diesel
The new rates bring EVs largely in line with internal combustion engine vehicles, though with one key difference: EVs avoid the higher first-year rates that apply to petrol and diesel cars based on their CO2 emissions.
A new petrol VW Golf with 120g/km CO2, for instance, pays £220 in its first year, then £195 annually. A Range Rover Sport P400 emitting 260g/km pays £2,745 in year one. Both then pay the standard £195 rate, plus the expensive car supplement if they cost over £40,000 when new.
So while EVs now pay VED, they still benefit from dramatically lower first-year charges compared to higher-emission vehicles.
The £40,000 Threshold Problem
That £40,000 list price threshold catches more EVs than you might expect. It’s based on the manufacturer’s list price when new, including VAT and any factory-fitted options, not what you actually paid after discounts.
This means popular models like the Kia EV6 Air (from around £45,995), Hyundai Ioniq 5 (from approximately £44,995), and most Tesla Model 3 variants all trigger the supplement. Even a well-specced MG4 Trophy Extended Range can nudge over £40,000 with options.
If you’re buying new and you’re close to that threshold, it’s worth checking whether de-speccing a few options could save you £2,125 over five years. Sometimes the panoramic roof isn’t worth an extra £425 per year in tax.
When You’ll Actually Pay
Your first payment under the new rates will be due from 1 June 2026. If your current VED expires before then, you won’t pay anything for that renewal; you’ll simply start paying from June.
After June 2026, you’ll pay annually or can set up monthly Direct Debit through the DVLA, which works out slightly more expensive over the year but spreads the cost. Based on current rates, paying the standard £195 annually via Direct Debit costs about £204 across 12 monthly payments of £17.
Check your V5C logbook or look up your vehicle on the DVLA website to confirm your car’s official list price and registration date if you’re unsure which category you fall into. The list price recorded by DVLA is what counts, not what you negotiated at the dealership.