{"id":7849,"date":"2025-04-04T09:00:28","date_gmt":"2025-04-04T08:00:28","guid":{"rendered":"https:\/\/www.exchangemycar.co.uk\/blog\/?p=7849"},"modified":"2026-04-03T12:02:20","modified_gmt":"2026-04-03T11:02:20","slug":"how-much-will-electric-car-tax-be-in-2025","status":"publish","type":"post","link":"https:\/\/www.exchangemycar.co.uk\/blog\/how-much-will-electric-car-tax-be-in-2025\/","title":{"rendered":"How Much Will Electric Car Tax Be in 2026? 6 FAQs Answered"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Are you wondering how much will electric car tax be in 2026? <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Well, from April 1, 2025, all-electric vehicles (EVs) will be subject to <\/span><a href=\"https:\/\/www.exchangemycar.co.uk\/blog\/when-does-a-car-become-tax-exempt\/\"><span style=\"font-weight: 400;\">Vehicle Excise Duty (VED)<\/span><\/a>.<span style=\"font-weight: 400;\"> This will end the years of tax-free benefits for EV owners. However, <\/span><span style=\"font-weight: 400;\">there is a lot of confusion around the new road tax calculations.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Don\u2019t worry! This guide breaks down everything from VED for EVs in 2025 to tax for those registered previously.<\/span><\/p>\n<p>So, without any further ado, let&#8217;s get started!<\/p>\n<p>&nbsp;<\/p>\n<h3><b>1. <\/b><b> How Much Will Electric Car Tax Be From April 1, 2025?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Starting April 1, 2025, electric vehicles <a href=\"https:\/\/www.gov.uk\/guidance\/vehicle-tax-for-electric-and-low-emissions-vehicles\">(EVs) will no longer be exempt<\/a> from Vehicle Excise Duty (VED). Instead, they\u2019ll be subject to road tax just like the petrol and diesel vehicles. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here\u2019s how it breaks down:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">In the first year, newly registered EVs will pay a \u00a310 Showroom Tax. This is a small initial fee that applies to all cars, regardless of their fuel type.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">From the second year onwards, electric cars will be charged the standard rate of \u00a3195 per year.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">However, if your EV has a list price of over \u00a340,000, you\u2019ll also need to pay the Expensive Car Supplement (ECS). This adds an extra \u00a3425 per year for the first five years. An EV priced over \u00a340,000 may very well end up paying \u00a3620 per year in road tax (\u00a3195 + \u00a3425) during this period.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While the tax-free era for EVs is ending, these changes aim to create a fairer system as more drivers switch to electric vehicles.<\/span><\/p>\n<h3><b>2. How Much Will Road Tax be for EVs Registered Between 2017 and 2025?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">If your electric car was registered between April 1, 2017, and March 31, 2025, you\u2019ll need to start paying road tax from April 2025. But don\u2019t worry; you\u2019ll still get a bit of a break compared to new EV owners.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">From April 2025 onward, you\u2019ll pay \u00a320 per year instead of the full standard rate of \u00a3190. Plus, even if your EV originally costed over \u00a340,000, you won\u2019t have to pay the Expensive Car Supplement (ECS).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This means if you bought an EV before April 2025, you\u2019ll pay significantly less in road tax compared to those buying new EVs after that date. It is a small win for early adopters of electric vehicles.<\/span><\/p>\n<h3><b>3. <\/b><b>How Much Will Road Tax be for Older EVs <\/b><b>Registered Between 2001 and 2017?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">If your electric car was registered between March 1, 2001, and March 30, 2017, the tax rules are a bit different. Unlike newer EVs, these older models are taxed based on their CO2 emissions, just like petrol or diesel cars.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The biggest change for these vehicles is that cars with 0-100g\/km emissions, which were previously tax-free, will now pay \u00a320 per year. Most older EVs fall into this category, so while it\u2019s a small increase, it\u2019s still a very low rate compared to traditional cars.<\/span><\/p>\n<h3><b>4. How Much Will Road Tax Be for Plug-in Hybrids (PHEVs)?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Plug-in <\/span><a href=\"https:\/\/www.exchangemycar.co.uk\/blog\/what-is-a-mild-hybrid-mhev-car\/\"><span style=\"font-weight: 400;\">hybrids<\/span><\/a><span style=\"font-weight: 400;\"> (PHEVs) are treated differently from fully electric vehicles when it comes to road tax. They\u2019re taxed based on their CO\u2082 emissions, just like petrol or diesel cars. If your PHEV has a list price over \u00a340,000, you\u2019ll also need to pay the \u00a3425 annual Expensive Car Supplement (ECS) for the first five years.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While PHEVs aren\u2019t as tax-friendly as fully electric cars, they\u2019re still a great option for drivers looking to reduce emissions without going fully electric. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Just check the following CO\u2082 emissions and list price to estimate your road tax:<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td>CO\u2082 emissions (g\/km)<\/td>\n<td>First-year VED rate<\/td>\n<td>Previous rate<\/td>\n<\/tr>\n<tr>\n<td>Up to 100<\/td>\n<td>\u00a320<\/td>\n<td>\u00a30<\/td>\n<\/tr>\n<tr>\n<td>101\u2013110<\/td>\n<td>\u00a320<\/td>\n<td>\u00a320<\/td>\n<\/tr>\n<tr>\n<td>111\u2013120<\/td>\n<td>\u00a335<\/td>\n<td>\u00a335<\/td>\n<\/tr>\n<tr>\n<td>121\u2013130<\/td>\n<td>\u00a3165<\/td>\n<td>\u00a3160<\/td>\n<\/tr>\n<tr>\n<td>131\u2013140<\/td>\n<td>\u00a3195<\/td>\n<td>\u00a3190<\/td>\n<\/tr>\n<tr>\n<td>141\u2013150<\/td>\n<td>\u00a3215<\/td>\n<td>\u00a3210<\/td>\n<\/tr>\n<tr>\n<td>151\u2013165<\/td>\n<td>\u00a3265<\/td>\n<td>\u00a3255<\/td>\n<\/tr>\n<tr>\n<td>166\u2013175<\/td>\n<td>\u00a3315<\/td>\n<td>\u00a3305<\/td>\n<\/tr>\n<tr>\n<td>176\u2013185<\/td>\n<td>\u00a3345<\/td>\n<td>\u00a3335<\/td>\n<\/tr>\n<tr>\n<td>186\u2013200<\/td>\n<td>\u00a3395<\/td>\n<td>\u00a3385<\/td>\n<\/tr>\n<tr>\n<td>201\u2013225<\/td>\n<td>\u00a3430<\/td>\n<td>\u00a3415<\/td>\n<\/tr>\n<tr>\n<td>226\u2013255<\/td>\n<td>\u00a3735<\/td>\n<td>\u00a3710<\/td>\n<\/tr>\n<tr>\n<td>255+<\/td>\n<td>\u00a3760<\/td>\n<td>\u00a3735<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><b>5. Will road tax changes affect the resale value of electric cars?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The new road tax rules could impact the resale value of full-sized and <a href=\"https:\/\/www.exchangemycar.co.uk\/blog\/best-small-electric-cars-uk\/\">small electric cars<\/a>. Pre-2025 EVs, which will pay just \u00a320 annually starting April 2025, may become more attractive in the used car market. Buyers looking to save on taxes might prefer these older models over newer, higher-taxed EVs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On the other hand, luxury EVs over \u00a340,000 could see a dip in demand due to the \u00a3390 annual Expensive Car Supplement (ECS). Overall, the changes might boost the appeal of affordable, pre-2025 EVs while making high-end models less appealing to budget-conscious buyers.<\/span><\/p>\n<p><img src=\"https:\/\/www.exchangemycar.co.uk\/assets\/empty.png\" data-original=\"https:\/\/www.exchangemycar.co.uk\/timthumb.php?src=https%3A%2F%2Fwww.exchangemycar.co.uk%2Fblog%2Fwp-content%2Fuploads%2F2025%2F03%2FHow-to-Calculate-Your-EV-Tax-1.jpg&w=777&h=485\" class=\"img-fluid img-inherit img-cover lazy\" alt=\"how much will electric car tax be in 2025 gov uk\" \/><\/p>\n<h3><b>6. Are there any exemptions or discounts for electric taxis or company EVs?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Yes, there are some exemptions and discounts for specific groups. Electric taxis are exempt from road tax as of now. However, it is most likely to change this year, after which they\u2019ll pay the standard rate.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For company EVs, businesses can benefit from lower Benefit-in-Kind (BIK) rates and tax relief on charging infrastructure. While road tax applies to all EVs from 2025, these groups still enjoy some financial perks.<\/span><\/p>\n<h2><b>Final Word: How Much Will Electric Car Tax Be in 2025?\u00a0<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Buying an electric vehicle (EV) in 2025 comes with new tax considerations, and failing to understand them could lead to unexpected costs. With Vehicle Excise Duty (VED) for EVs kicking in, it\u2019s crucial to know how much you\u2019ll pay based on your car\u2019s registration date.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To stay ahead, learn about EV tax changes, how the government calculates VED, and ways to minimise your tax bill. By planning wisely, you can still enjoy the benefits of owning an electric car.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For more expert insights on EV <\/span><span style=\"font-weight: 400;\">ownership<\/span><span style=\"font-weight: 400;\"> and road tax, check out our <\/span><a href=\"https:\/\/www.exchangemycar.co.uk\/blog\/\"><span style=\"font-weight: 400;\">latest guides<\/span><\/a><span style=\"font-weight: 400;\"> and resources.<\/span><\/p>\n<div style=\"all: initial !important;\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Are you wondering how much will electric car tax be in 2026? Well, from April 1, 2025, all-electric vehicles (EVs) will be subject to Vehicle Excise Duty (VED). This will end the years of tax-free benefits for EV owners. However, there is a lot of confusion around the new road tax calculations. Don\u2019t worry! This [&hellip;]<\/p>\n","protected":false},"author":14,"featured_media":7851,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[324,1],"tags":[1220,1216,1219,1214,1221],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.exchangemycar.co.uk\/blog\/wp-json\/wp\/v2\/posts\/7849"}],"collection":[{"href":"https:\/\/www.exchangemycar.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.exchangemycar.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.exchangemycar.co.uk\/blog\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/www.exchangemycar.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=7849"}],"version-history":[{"count":17,"href":"https:\/\/www.exchangemycar.co.uk\/blog\/wp-json\/wp\/v2\/posts\/7849\/revisions"}],"predecessor-version":[{"id":11561,"href":"https:\/\/www.exchangemycar.co.uk\/blog\/wp-json\/wp\/v2\/posts\/7849\/revisions\/11561"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.exchangemycar.co.uk\/blog\/wp-json\/wp\/v2\/media\/7851"}],"wp:attachment":[{"href":"https:\/\/www.exchangemycar.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=7849"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.exchangemycar.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=7849"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.exchangemycar.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=7849"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}