Electric cars are subject to Vehicle Excise Duty (VED). The bill depends on the first registration date, original list price and payment method. This guide covers the rates applying from 1 April 2026 to 31 March 2027.
Which rate applies to your electric car?
| First registration | Annual rate in 2026/27 |
|---|---|
| On or after 1 April 2025 | £10 for the first year; £200 standard rate afterwards |
| 1 April 2017 to 31 March 2025 | £200 standard rate |
| 1 March 2001 to 31 March 2017 | £20 |
These figures are from DVLA's electric vehicle guidance. An older electric car does not retain several tax-free years simply because it was registered before the exemption ended in April 2025.
The expensive car supplement
For zero-emission cars registered on or after 1 April 2025, the threshold is an original list price above £50,000. The additional charge is £440 a year in 2026/27, payable for five years from the second tax payment. Together with standard VED, that is £640 for a single annual payment. The threshold also applies to qualifying electric cars first registered between April 2025 and March 2026. Zero-emission cars registered before April 2025 are exempt from this supplement. See the official rate table.
The relevant price is the published price before discounts, not the amount you negotiate or the used-car asking price. Ask the dealer to confirm the tax classification and list price of the exact specification in writing. A model name alone is insufficient: trim and options can change the answer.
Budget for the payments you will actually make
The figures above describe a single annual payment. Monthly Direct Debit carries a higher annual total: £210 at the standard rate or £672 when the supplement applies. Do not multiply today's annual rate by a whole ownership period and call the result a guaranteed future bill. Rates can change, and the first-year charge and supplement follow different timelines.
For a used car, record its original registration date, whether any supplement period remains, and your next renewal date. Keep VED separate from insurance, finance, depreciation and energy. Corporation-tax capital allowances and company-car benefit tax are separate calculations; they do not cancel the VED bill.
What about a mileage tax?
The government has announced electric Vehicle Excise Duty from April 2028 and published a consultation on its introduction. It is not a charge payable under the 2026/27 rates above. For ownership extending beyond that date, review the implementation rules separately rather than treating a consultation as an existing bill.
The previous model-by-model five-year totals have been removed: they combined outdated rates with approximate list prices. Use the official vehicle details and renewal amount when preparing your own budget.