Electric cars now pay road tax — the 2026 changes, decoded
The free ride is over: electric cars now pay road tax like everything else, and 2026 quietly tightens the screws a bit further. Time for a plain-English decode.
For years the big EV sales pitch included a smug little line about zero road tax. That perk ended in April 2025, when zero-emission cars became liable for Vehicle Excise Duty (VED) — and no, they haven’t quietly reversed it. So before you get carried away by cheap electricity, here is what actually leaves your account.
VED: what an EV pays now
A brand-new electric car registered from April 2025 pays a token first-year rate, then drops onto the flat standard rate — a little under £200 a year — from year two. Older EVs already on the road have been pulled into the same standard rate as they renew, while the really old ones sit on a lower band. In short: whatever the salesperson’s muscle memory tells them, budget for VED. If you want to sanity-check any specific car, you can look up its tax status and band in minutes.
The £50,000 trap
Here’s the one that catches people out. The “expensive car supplement” — a hefty extra charge for pricier motors — used to hit EVs at £40,000, which was frankly nothing for an electric car. From April 2026 the threshold for zero-emission cars rose to £50,000, which is genuinely good news. But plenty of EVs still sail past it, and if yours does, you’re stung with that supplement on top of the standard rate for five years. Worth knowing before you tick the options boxes.
Company car? Still the sweet deal
If you’re getting an EV through work, breathe easy — the Benefit-in-Kind rate for electric company cars is still gloriously low, even after nudging up to 4% for the 2026/27 tax year. Compared with a petrol company car, that is pocket change, which is exactly why salary-sacrifice EVs remain such a no-brainer. Our guide to getting a car through your business walks through it.
London and the low-emission zones
Electric cars still meet ULEZ standards and pay nothing to enter it — if you’re unsure whether your car qualifies, here’s how to check if your car is ULEZ compliant. The one to note is London’s Congestion Charge: the old 100% EV exemption has gone, replaced by a Cleaner Vehicle Discount, so electric drivers now pay a reduced daily rate rather than nothing. Still cheaper than a petrol car — just no longer free.
Does it kill the EV case? Not really
Let’s keep this in perspective. Even with VED, a home-charged EV is still far cheaper to run than petrol — our cost per mile comparison shows the fuel gap dwarfs the tax. And with used electric cars now going for a song, the sums stack up better than ever, whether you fancy the reborn electric Nissan Micra or something bigger.
The takeaway: taxes on EVs are creeping up, but they’re still the cheap option overall. Just factor VED and the £50k threshold into your budget from day one — and whatever you buy, run a full vehicle history check so there are no nasty surprises hiding in the paperwork.
Frequently asked questions
Do electric cars pay road tax in 2026?
Yes. Since April 2025, zero-emission cars pay Vehicle Excise Duty. A new EV pays a token amount in year one, then the flat standard rate — a little under £200 a year — from the second year onwards.
What is the expensive car supplement for EVs in 2026?
From April 2026 the threshold for the supplement rose to £50,000 for zero-emission cars, so EVs priced above that pay an extra annual charge for five years on top of the standard rate.