How much road tax do EV drivers have to pay?
As of 1st April 2025, if you’re an EV driver, it’s game over for the road tax-free life. Most EV drivers will have to pay £195 a year.
If you’re driving a new EV with a list price of more than £40,000, you may have to pay up to £620 a year.
Traditionally, drivers of battery-powered electric vehicles (BEVs) were exempt because of their zero emissions. Plug-in hybrid (PHEV) owners paid a reduced VED. PHEVs worth £40,000+ owed an annual supplement (for the five years from the second time it's taxed).
Battery electric vehicles (BEVs)
From April 2020 until March 2025, BEVs (which are zero-emission EVs) didn’t pay any road tax, in both the first year and in all subsequent years - whatever their list price. Now, BEV owners will have to pay the same as everyone else.
Hybrid electric vehicles (HEVs)
Hybrids tend to have minimised emissions. Some HEVs (and PHEVs) are ultra-low emissions vehicles (ULEV). That means they produce less than 75g/km of CO2. Cars producing 0g/km of CO2 emissions (ie BEVs) paid no VED, whereas cars between 1-50g/km of CO2 paid £140 (with a premium supplement of £325 if the vehicle was bought for over £40,000).
But the rule changes that come into force from April 2025 mean that HEV drivers will pay the same as everyone else.
Plug-in hybrids (PHEVs)
PHEV owners used to pay somewhere between £0-£100 VED for the first year of ownership. It depended on their CO2 emissions and spanned from £0 - £145. After that, they paid £140 each year. Cars worth over £40,000 paid a premium car supplement of £325.
So what exactly is changing in April 2025?
- New zero-emission cars registered on or after 1 April will pay the lowest first-year rate of VED – currently £10 a year.
- From the second year onwards, they will move to the standard rate – £195 a year.
- Zero-emission cars first registered between 1 April 2017 and 31 March 2025 will pay the £195 rate.
- The Expensive Car Supplement exemption for EVs ends and becomes £425 a year, so EV drivers with an ‘expensive car’ will pay £620 a year in road tax.
- Zero-and-low-emission cars first registered between 1 March 2001 and 30 March 2017, currently in Band A, will move to Band B – £20 a year.
- Zero-emission vans move to the £335 rate for petrol and diesel light-goods vehicles.
- Zero-emission motorcycles and tricycles move to the rate for the smallest engine size – £25 a year.
Do I still need to pay vehicle tax for my EV?
Yes. You need to get your car vehicle taxed! You can do this at www.gov.uk/vehicle-tax or at the Post Office.
Is road tax included in an electric car lease?
Make sure to check with your provider during the process of leasing your EV.
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