Confused about road tax when it comes to your electric car? Our guide covers everything you need to know about road tax and your electric vehicle or hybrid.
Do electric cars pay road tax?
The government calculates Vehicle Excise Duty (VED), otherwise known as road tax or car tax, using a few factors:
- vehicle age
- the type of fuel
- CO2 emissions or engine size
- car price
- pollution levels
Check out the VED rate list on GOV.UK.
EVs used to be exempt from paying road tax, but that changed on 1 April 2025.
Classic cars more than 40 years old, agricultural vehicles such as tractors, and vehicles used by disabled people are still exempt from paying road tax. Note that this depends on the year the car was registered, too.
Do I have to pay EV road tax?
As of 1 April 2025, all new EVs registered have to pay £10 tax in the first year, increasing to £195 from the second year onwards. This applies to all EVs, regardless of price.
EVs registered between 1 April 2017 and 31 March 2025 will now pay £195 per year.
Road tax for electric cars first registered between 1 March 2001 and 31 March 2017 is in the new 'Band B' rate, which is currently set at £20 per year.
Do you need to pay premium rate tax on EVs?
No. But EVs with a list price over £40,000 registered after 1 April 2025 will have to pay a £425 expensive car supplement (introduced by the government in 2017) for the car.
They’ll need to pay this every year from the second to sixth year of registration. From year seven, the annual tax drops to the standard rate of £195.
It’s important to note that even if you get a discount on the purchase price of an EV, you’ll still need to pay the supplement if it’s listed at over £40,000.
EVs with a list price under £40,000 aren’t considered luxury cars in terms of road tax, so they’re not subject to the expensive car supplement.
Tax for hybrid cars
If you have a hybrid car, or a plug-in hybrid (also known as PHEVs), your tax requirements are slightly different to pure EVs.
This is because hybrids and PHEVs still use petrol or diesel and a small electric battery, leading to CO2 emissions from the exhaust.
Note that a hybrid car does not need to be charged (as it is charged by regeneration braking), whereas a PHEV does need to be charged. Check out our guide to EVs, hybrids and PHEVs to learn more.
[H3] Do hybrid car owners pay road tax?
Yes.
From 1 April 2025, the £10 discount for hybrid cars can no longer be used. Instead, your tax depends on when the vehicle was first registered.
If your hybrid car was registered before 1 April 2017, your road tax rate will depend on your vehicle’s CO2 emissions. You can find the tax bands on the GOV.uk webpage.
If it was registered after 1 April 2017, you’ll pay the standard rate of road tax. This is currently £195 as of 1 April 2025.
Is premium rate tax payable on hybrids?
Any hybrid with a list price of £40,000 or above must pay the expensive car supplement of £425 for five years (starting from the second year the vehicle is taxed).
How to pay road tax
There are different ways of paying your VED.
Usually, people pay for their road tax online through the GOV.UK website after receiving a letter in the post saying their road tax is due. This letter will have a reference number that you’ll be asked to enter when you go to pay online.
If you didn’t get a letter or lost it, you can find your reference number in your vehicle logbook (V5C).
You can also pay your road tax over the phone, or even in your local post office.
If you don’t have this reference number on any document, you’ll need to apply for a new V5C logbook.
Payment methods for road tax
You can make a lump sum payment or spread the cost of car tax by paying monthly or every six months via Direct Debit.
There’s a 5% charge added on top if you pay monthly or every six months.
MOTs for electric vehicles
If you’re wondering about what kind of MOT your electric vehicle will need, and how much it may cost, check out our guide to MOTs for electric vehicles.
We also have a handy guide on electric car insurance.
