What is the Vehicle Excise Duty rate for electric cars in 2026/27?

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Vehicle Excise Duty for Electric Cars in 2026/27 Electric vehicles (EVs) lost their VED exemption from April 2025. For the 2026/27 tax year, the following rates apply to new battery electric cars (BEVs) registered on or after 1 April 2025: First-Year Rate New zero-emission cars pay a first-year rate of GBP 10. This is significantly lower than petrol and diesel vehicles, whose first-year rates range from GBP 180 for low-emission cars up to GBP 2,745 for the highest CO2-emitting vehicles. Standard Annual Rate (Years 2 Onward) After the first year, EVs move to the standard annual VED rate, which for 2026/27 is GBP 190 (the same flat rate applied to most cars regardless of fuel type after their first year). Expensive Car Supplement Electric cars with a manufacturer's list price (including options) exceeding GBP 40,000 attract an additional expensive car supplement of GBP 570 per year. This applies from the second year of registration through to the sixth year (years 2 to 6 inclusive), after which only the standard rate applies. This means a premium EV costing over GBP 40,000 pays GBP 190 + GBP 570 = GBP 760 per year in years 2 to 6. Older EVs Registered Before April 2025 Zero-emission cars registered between 1 April 2017 and 31 March 2025 now pay the standard annual rate of GBP 190. Those registered before April 2017 are taxed based on their CO2 emissions or engine size under the older VED framework. Company Cars and Benefit in Kind VED is separate from Benefit in Kind (BiK) tax on company EVs. Zero-emission company cars retain a very low BiK rate (2% in 2025/26, rising gradually), making them still highly tax-efficient as a company car choice despite the new VED charges. EV drivers should factor VED into their total cost-of-ownership calculations alongside electricity costs, insurance, and any applicable road pricing schemes under development.

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