Electric Car Tax in the UK
Updated 30 March 2026
Electric vehicles lost their VED exemption on 1 April 2025. New EVs now pay £0 in the first year and £10 per year from year 2. EVs with a list price over £40,000 also pay the £410 expensive car supplement for 5 years. Here is exactly what you will pay.
£10
/year standard rate
EVs under £40,000
£420
/year with supplement
EVs over £40,000 (years 2-6)
Timeline of EV Tax Changes
Electric vehicles registered before this date pay £0 VED indefinitely under the old system.
EVs registered in this period were placed in Band A (0 g/km) and paid £0 VED. Completely exempt.
New EVs pay £0 first year rate, then £10/year standard rate. The expensive car supplement (£410/year for cars over £40,000) now applies to EVs too.
EVs already on the road that were previously exempt now pay £10/year standard rate.
What You Will Pay
| Scenario | First Year | Annual Rate | 5-Year Total |
|---|---|---|---|
| New EV under £40,000 | £0 | £10/year | £40 |
| New EV over £40,000 (e.g. Tesla Model 3 Long Range) | £0 | £420/year (£10 + £410 supplement) | £2,100 |
| Existing EV (registered 2017-2025) | N/A | £10/year | £50 |
| Existing EV over £40,000 (registered 2017-2025) | N/A | £420/year if within 5-year window | Up to £2,100 |
| EV registered before April 2017 | N/A | £0 | £0 |
Popular EVs and Their Tax
| Model | List Price | First Year | Annual (yr 2+) | Note |
|---|---|---|---|---|
| Tesla Model 3 Standard Range | ~£40,990 | £0 | £420 (supplement applies) | Just over £40k threshold |
| Tesla Model Y | ~£44,990 | £0 | £420 (supplement applies) | Supplement for 5 years |
| Nissan Leaf | ~£28,995 | £0 | £10 | Under £40k, no supplement |
| MG4 EV | ~£26,995 | £0 | £10 | Under £40k, cheapest option |
| BMW iX | ~£69,900 | £0 | £420 (supplement applies) | Well over threshold |
| Volkswagen ID.3 | ~£33,000 | £0 | £10 | Under £40k, no supplement |
| Hyundai Ioniq 5 | ~£42,000 | £0 | £420 (supplement applies) | Just over threshold |
| BYD Atto 3 | ~£36,490 | £0 | £10 | Under £40k, good value |
List prices are approximate and may vary by specification. The £40,000 threshold is based on the published list price including options and delivery, excluding the first registration fee.