Do Electric Cars Pay Road Tax?
FixMyCar discusses whether electric car owners have to pay road tax.
Book a car repair nowEllie Dyer-Brown
Monday December 01 2025
5 min read
The rules around electric vehicle (EV) road tax changed in 2025. Previously, drivers of zero-emissions vehicles were exempt from paying, but that is no longer the case. Read on to learn more about these changes and how they might affect you.
In a nutshell: Fully electric vehicles were exempt from paying road tax until April 2025. Plug-in hybrid vehicles have always paid road tax. EVs with a list price above £40,000 are charged an additional five-year premium rate.
What is electric car road tax?
Road tax, also known as Vehicle Excise Duty (VED), is a legally required annual payment for motor vehicles that use the UK’s public roads. It is collected by the Driver and Vehicle Licencing Agency (DVLA). Check out this guide to learn more about VED and how it works.
Road tax is calculated based on emissions levels; vehicles with higher emissions cost more to tax, and the money contributes to the upkeep of our roads, amongst other things.
How much do electric vehicle drivers pay for road tax?
Owners of EVs must pay road tax from 1st of April 2025. This change, aimed at making the motoring tax system fairer, was announced by the Government in the 2022 Autumn Budget.
Here are the changes you need to be aware of:
New electric cars registered on or after the 1st of April 2025 will be liable to pay the lowest first-year rate, which is currently £10 a year.
EVs will move to the standard rate of £195 a year from the second year onwards.
Zero emissions vehicles registered between the 1st of April 2017 and the 31st of March 2025 will also pay the standard rate.
The Expensive Cars Supplement exemption will also end for EVs in 2025. Electric cars registered on or after the 1st of April 2025 worth more than £50,000 will have to pay this supplement for five years.
Zero and low-emission vehicles registered between the 1st of March 2001 and the 30th of March 2017 that are currently in Band A will move to Band B, paying £20 a year.
Zero emission vans will move to the rate for petrol and diesel light goods vehicles, which is £336 a year for most vans.
Zero-emission motorcycles will move to the rate for the smallest engine size, costing £25 a year.
Rates for hybrid and Alternative Fuel Vehicles will also be equalised.
2025 Autumn Budget update: eVED
In the Autumn Budget, the government confirmed that from April 2028, electric and plug-in hybrid cars will be subject to a pay-per-mile tax, known as eVED.
EV drivers will be charged at a rate of 3p per mile; plug-in hybrid drivers will be charged 1.5p per mile. This means motorists covering 10,000 miles a year in an EV will pay an additional £300 in tax.
The government is seeking views on how to best implement the eVED scheme through a consultation on the gov.uk website.
How will you pay eVED road tax?
Electric and plug-in hybrid drivers will likely use the same DVLA system already used for road tax to minimise the administrative burden for motorists. The eVED consultation document explains that motorists "will estimate their mileage for the year ahead, pay an upfront charge based on their estimate of spread their payment across the year, and then submit their actual mileage at the end of the year."
Motorists will be reimbursed if they have done less than the estimated mileage at the end of the year. Dealers selling new cars will be able to pre-pay for a certain number of miles and include it in the purchase or leasing package.
How much is road tax for hybrid cars?
Hybrid cars have always been required to pay road tax but have enjoyed a cheaper rate than their petrol and diesel counterparts. In 2025, that changed, and they started paying road tax at the standard rate.
Plug-in hybrid vehicles will be subject to eVED from 2028.
Will I have to pay road tax on electric cars after 2035?
The government has banned new combustion engine vehicles from 2035. However, that doesn't necessarily mean new electric cars won't have to pay road tax.
It's too early to predict the exact changes that might happen to the road tax system, but one thing remains clear: our roads will still require maintenance, and the funds for this upkeep will need to be sourced. That's why it's probable that road tax will continue to be a part of our lives even after the combustion engine vehicle ban is implemented.
Looking for affordable car repairs and maintenance? FixMyCar can help you find the right garage at the right price.
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Ellie is FixMyCar's Content Manager. She has over three years of experience writing about cars and regularly collaborates with automotive experts to provide trustworthy advice for drivers that is easy understand. Her work has been featured in Yahoo! Finance, iNews, The Daily Express and The Sun. She has a BA in English literature and an MA in creative writing from Durham University. Outside of work, Ellie follows F1 and eagerly awaits Ferrari's next era of dominance in the sport. She drives a Suzuki Swift.