Explaining the EV Tax
As of 1st April 2025, all electric vehicles will need to pay car tax. Before this date, EV owners were exempt from paying tax as they aren’t emitting fumes like petrol and diesel cars. However, recent changes and concerns over how infrastructure and roads will be paid for after so many vehicle owners transition to electric means that EV owners can no longer avoid paying the tax.
To pay your tax, you will need to do so in full or monthly by direct debit. It can be done via post office or online through the vehicle tax website. For those who are exempt from paying tax (such as people with disabilities), the rules should stay the same.
How much will I need to pay for the EV tax?
When it comes to paying the EV tax for the first year of owning an electric vehicle, you will need to pay £10 which is the lowest rate you can pay.
From the second year of owning an EV and onwards, you will need to pay the standard rate of tax that everyone has to pay, which is £190.
For those who own what is considered a ‘luxury car’ (when a vehicle’s price was over £40,000 brand new), you will need to pay a Luxury Car Tax of £410 from the second year and for the next five years.
These rates are subject to change as we get closer to 1st April, so you may end up paying more. We advise that you look into the tax bracket that your car falls into, which will be able to give you an idea of how much you will have to pay every year.
It should be noted that although these changes are being introduced for owners of EVs which may put drivers off owning one themselves - however the overall costs of EV ownership are much less than owning an ICE (Internal Combustion Engine) vehicle: less maintenance (for less moving parts) and less ‘fuel’ costs.
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