UK electric car road tax
3p per mile calculator

eVED (electric Vehicle Excise Duty) is a new mileage-based tax for electric cars and plug-in hybrids announced in the November 2025 Budget. From April 2028, battery electric vehicles pay 3 pence per mile and plug-in hybrids pay 1.5 pence per mile, on top of the standard £195 annual VED. It replaces fuel duty revenue as drivers switch to electric vehicles.

For an average driver doing 8,000 miles per year in an electric car, you'd pay £240 in eVED (8,000 × 3p) plus £195 standard VED = £435 total annual road tax. Plug-in hybrid drivers doing 8,000 miles would pay £120 in eVED (8,000 × 1.5p) plus £195 VED = £315 total. Use the calculator above to see your exact estimate.

When you renew your VED each year, you'll enter your current odometer reading and estimate your mileage for the year ahead. You pay for that estimated mileage upfront (or spread via Direct Debit). At the end of the year, your actual mileage is reconciled against your estimate via MOT odometer readings. If you drove more than estimated, you pay the difference; if you drove less, you get a credit towards next year.

Yes. The government has confirmed you can pay eVED monthly via Direct Debit, bi-annually, or annually upfront – the same options available for VED today. However, unlike fuel duty which naturally spreads across 12 months as you fill up, eVED is an estimate-based system. If you underestimate, you may face a balancing payment at year end. The government intends to allow spreading of any underpayment into the following year.

PHEVs pay 1.5p per mile (half the electric car rate) because they already pay fuel duty on miles driven in petrol mode. The government considered requiring drivers to report exact electric vs petrol mileage but decided a reduced flat rate was more practical and better protects privacy.

No. The government has explicitly ruled out GPS tracking or in-car trackers. There is no requirement to report where or when you drive. Mileage is verified via odometer readings at MOT tests. This means overseas miles driven by UK cars will be included in eVED (same as fuel duty, which doesn't vary by location).

New cars under 3 years old will need to attend an annual mileage check at an accredited provider (likely MOT garages) around their first and second registration anniversary. There will be no charge to the motorist – these checks will be funded by the government. The government is consulting on whether these mandatory checks are necessary or if alternative approaches exist.

Pre-paid mileage stays with the vehicle. Any remaining credit OR mileage deficit transfers to the new owner. The eVED status (credit or deficit) will be visible via DVLA systems, and the government expects this to be reflected in the sale price (e.g. a car with a deficit might sell for less).

Fuel duty currently raises roughly £25bn annually. As drivers switch to electric cars, this revenue is forecast to halve by 2030. This new charge helps plug that gap ensuring road maintenance and public services can still be funded.

The 3p per mile rate is set at half the ~6p per mile equivalent that petrol drivers pay in fuel duty. So while it's a new cost, electric car drivers will still pay significantly less tax per mile than petrol or diesel drivers. The government's stated aim is fairness: by 2030, around 1 in 5 drivers would pay no fuel duty equivalent without this change.

No. Pay per mile insurance is a private product offered by insurers for low-mileage drivers to reduce premiums. eVED is a mandatory government tax that replaces fuel duty revenue. They are completely separate.

Yes. The rate will be uprated in line with CPI inflation from 2029-30 onwards. This means the 3p per mile rate (and 1.5p PHEV rate) will gradually increase each year to maintain its real-terms value.