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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鈥檙e thinking about switching to an electric car, one of the first questions you鈥檒l probably ask is: do you pay road tax on an EV?

Until recently, the answer was a simple 鈥渘o鈥� 鈥� but that鈥檚 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鈥檚 get a pedantic point out of the way 鈥� road tax isn鈥檛 really road tax at all, it鈥檚 Vehicle Excise Duty (VED). The revenue from VED isn鈥檛 ringfenced to pay for roadbuilding and repairs, so calling it road tax is technically misleading.

Instead, 鈥榬oad tax鈥� (as almost everyone calls it) is paid by most car owners as a way for the government to raise revenue, and it鈥檚 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鈥檚 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 拢10 for their first year of road tax. They are no longer exempt.
• Cars emitting 1鈥�50g/km of CO2, mostly plug-in hybrids, pay 拢110 in year one.
• Cars emitting 51鈥�75g/km pay 拢130.
• Cars that emit over 75g/km, usually conventional petrol and diesel models, face much higher first-year charges 鈥� ranging up to 拢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 拢195. This standardises the tax across all vehicle types, removing previous discounts for hybrids and exemptions for electric vehicles.

There鈥檚 an additional charge for pricier vehicles: any car with a list price over 拢40,000 must pay an extra 拢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 鈥� with most electric cars in this group now paying a modest 拢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鈥檒l pay 拢10 in the first year, then 拢195 per year after that. If the car costs more than 拢40,000, you鈥檒l also pay an extra 拢425 a year for years two to six.

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

Even with these changes, electric cars still pay less road tax than most petrol or diesel cars. They鈥檙e 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 拢40,000?

Yes, electric cars with a list price over 拢40,000 that are registered on or after 1 April 2025 will be subject to the Expensive Car Supplement of 拢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鈥檒l pay 拢10 in the first year of registration, then 拢195 a year from the second year onward. For EVs registered between 2017 and 2025, the road tax is a flat 拢195 annually. Older electric cars registered before April 2017 pay just 拢20 per year.

Do hybrid cars need to pay road tax?

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

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