Do You Pay Road Tax On Electric Cars

blue car in an ev charging bay

This guide will look at road tax and electric cars.

And if so, what sort of price will you be paying? 

We also take a look at regular vehicles and hybrid models.

Let’s begin…

How Much Does It Cost To Put Vehicle Tax On Electric Cars

No, you don’t pay tax on electric vehicles. If your vehicle has a battery in which you charge with electricity, then you are exempt from paying tax or vehicle excise duty (VED).

This is just one of many reasons why people are switching to electric cars to save money in the long run, although we don’t know how long it will be before the government starts charging road tax for an electric car.

What Is Vehicle Excise Duty?

VED or vehicle excise duty is the term used when you have a vehicle that is parked or driven on UK roads in which you have to pay tax. The amount all depends on the age of your vehicle and the make and model.

This is because older cars tend to give off more CO2 emissions, therefore you pay more vehicle tax.

Do Hybrid Cars Pay Road Tax

Hybrid vehicles do pay tax. This is because they use an electric motor, as well as petrol and diesel. 

Hybrid vehicles get charged a lower rate of road tax on their vehicle because they are producing far less CO2 emissions than a regular car that uses petrol or diesel. 

Only electric cars that charge their battery are exempt from paying road tax.

How To Calculate Road Tax For Electric Vehicles

car with two public chargepoints

Car road tax is calculated by determining the age of your vehicle, here are the two main ways:

  • For cars registered before March 2001, VED is based on their engine size.

  • For a vehicle registered after March 2001, the VED is calculated based on its CO2 tailpipe emissions.

Can You Be Fined For No Road Tax On A Car

If you have a normal vehicle such as petrol and diesel cars and you are driving or parking on public roads without tax then yes you can be fined up to £1000.

The same goes with hybrid as they only use a section for electric so they still have to make road tax payments. 

It’s only fully electric vehicles and zero emissions cars that do not have to pay any form of tax and therefore will not be fined.

How Do I Pay The Road Tax For My Electric Vehicle

As mentioned above, you don’t have to pay anything for vehicle road tax. Just fill in the application process and yours will go through the system.

Will Electric Car Road Tax Be Introduced In The Future

It is likely that in the future, pure electric vehicle owners will have to pay some form of tax. The government aren’t going to keep giving a free pass to everyone who owns zero emission vehicles. Especially when the numbers are starting to increase and predictions suggest by 2040, 80% of new vehicle sales in the US could be electric, so expect tax for electric cars in the future.

Battery electric vehicles are also still exempt for the time being but from April 2025, that will all change. Road tax costs will be issued similarly to the way fuel duty is used at the moment for petrol and diesel vehicles.

Therefore the global market will be exactly the same, and it will be no different in the UK. With more and more families buying an electric vehicle, then road duty is extremely likely to come back into play. Many people are switching to electric power to keep those running costs down.

Going Electric - FAQs Answered

Why Do Electric Cars Pay No Tax?

Electric cars pay no tax because they are run off a battery which is charged through electricity and therefore don’t emit any CO2 emissions. Unlike petrol, diesel and hybrid vehicles which all still produce CO2 emissions. Although hybrid cars do still get charged less than normal cars and electric pays nothing at all. However, it is unlikely EV’s will be exempt from road tax in the future.

What Benefits Do Electric Vehicle Owners Get?

If you purchase brand new worth £32,000 or less you can receive up to £1500 off that price and you also qualify for free road tax VED and cheaper insurance than everyone else.

Is Road Tax Included in Electric Vehicles Lease?

Usually, when leasing an EV, it will be included but it’s best to check with your provider before purchasing.

Last Word

We hope that answers all your questions regarding tax and EVs. This is one of the other benefits that people don’t realise, is that you save money on fuel but also maintenance and tax when switching to an EV.

If you have any other questions regarding EV Costs or electric cars in general browse our other guides or contact us if you can’t find what you’re looking for around the website


Nick is the proud owner of a MG ZS EV and is an EV fanatic. He has been featured in notable publications like USA Today and The Times for his expertise in the field.