What is the Vehicle Excise Duty (road tax) rate for electric cars in 2026/27?

Full answer

Electric vehicles enjoyed a full Vehicle Excise Duty (VED) exemption for many years, but that changed from 1 April 2025, and the rules now apply throughout 2026/27. **First-year rate for new electric cars** Electric cars first registered on or after 1 April 2025 pay a first-year VED rate of £10 -- a nominal amount compared with the much higher first-year rates that apply to higher-emission petrol and diesel cars, which are banded by CO2 emissions. **Standard rate from year two** From the second year of registration onwards, electric cars pay the standard annual VED rate, which is £200 in 2026/27 -- exactly the same flat rate that applies to petrol, diesel, and hybrid cars from their second year onwards, regardless of engine size or emissions. **The "expensive car" supplement** Cars with a list price above £40,000 when new pay an additional expensive car supplement of £440 per year, on top of the standard rate, for five years starting from the second year of registration. This supplement now also applies to electric cars registered from April 2025, whereas it previously did not -- from April 2026 the threshold for zero-emission cars specifically was raised to £50,000, giving EVs slightly more headroom before the supplement bites compared with petrol and diesel models. **Cars registered before April 2025** Electric cars registered before 1 April 2025 that were previously exempt also moved onto VED from that date, generally paying the standard rate for their vehicle age band rather than remaining exempt indefinitely. **Why the change was made** The government removed the EV exemption as part of a wider move to make motoring taxation fairer as electric vehicle numbers grow, since VED exemptions for EVs were becoming an increasingly large gap in road tax revenue. **Worked example** Someone buys a new electric car for £45,000, registered in June 2026. Year one: £10 VED. From year two: £200 standard rate, plus the £440 expensive car supplement (since the price exceeds £40,000 but is below the £50,000 zero-emission threshold, this may or may not apply depending on the exact rules in force -- check the current gov.uk guidance for the precise threshold applicable to your registration date). **Practical tip** Use the Road Tax calculator to check the exact VED payable for your specific vehicle, registration date, and list price.

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