Electric car road tax guide – how much will you have to pay in 2025?

Since April 2025, electric car drivers are required to pay for road tax. There is also the 'luxury car tax' fee that applies to EVs with a list price that exceeds £40,000.

Many of the road tax changes have been backdated, which means drivers who have never paid for VED before are now required to do so.

To help you understand the 2025 electric vehicle road tax rules and law changes, we've put together this guide to set out what Vehicle Excise Duty costs EV owners.

For most electric vehicle drivers, the cost of road tax (VED) in 2025 is £195 per 12 months.

If your electric car was first registered after 1 April 2025 and has a list price that exceeds £40,000 then you will also be required to pay the 'luxury car tax fee', which adds £425 a year and takes the total annual VED up to £620.  

If your electric car was registered before April 2017, your annual VED will be £20.

There is no exemption from VED for EV drivers, with free road tax abolished on 1 April 2025. 

*Cars with a list price of over £40,000 when new pay an additional rate of £425 per year on top of the standard rate, for five years. The five-year time limit starts from the second year the car is first registered.

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Since 1 April 2025, drivers of electric vehicles need to pay for VED – road tax for the first time. For most EV drivers, this is £195 a year, while drivers of new electric cars with a list price that exceeds £40,000 could pay as much as £620 a year. 

The 2025 EV road tax changes are as follows:

• New zero-emission cars registered on or after 1 April 2025 will be liable to pay the lowest first-year rate of VED (which applies to vehicles with CO2 emissions 1 to 50g/km) currently £10 a year.
• From the second year of registration onwards, they will move to the standard rate, which will be £195 a year after 1 April 2025
• Zero emission cars first registered between 1 April 2017 and 31 March 2025 will also pay the £195 standard rate
• The Expensive Car Supplement exemption for electric vehicles will end on 1 April 2025. New zero emission cars registered on or after 1 April will therefore be liable for the Expensive Car Supplement. The Expensive Car Supplement currently applies to cars with a list price exceeding £40,000 for the first five years the standard rate is paid. This will be £425 a year from 1 April 2025, which means EV drivers with an 'expensive car' will pay £620 per year for road tax
• Zero and low emission cars first registered between 1 March 2001 and 30 March 2017 currently in Band A will move to the Band B rate, currently £20 a year
• Zero-emission vans will move to the rate for petrol and diesel light goods vehicles, currently £335 a year for most vans
• Zero-emission motorcycles and tricycles will move to the rate for the smallest engine size, currently £25 a year
• Rates for Alternative Fuel Vehicles and hybrids will also be equalised

Yes, almost all vehicles need to have been road taxed in order to drive on UK roads – including electric vehicles (EVs).

However, electric car drivers previously did not need to pay anything to tax their vehicle with the annual VED provided free of charge. In 2025, that all changed.

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In addition to car tax, here are some of the annual payments that drivers of electric cars should be aware of.

1. Electricity costs: Charging an electric car at home will increase your electricity consumption. The cost will depend on the efficiency of your vehicle, local electricity rates, and the number of miles you drive.
2. Car insurance: EV insurance is something all drivers must have before they get behind the wheel. The cost of insuring an electric car can vary depending on factors such as your driving history, the specific vehicle model, and the insurance provider.
3. Maintenance: Electric cars generally have fewer moving parts and require less maintenance compared to traditional combustion engine vehicles. However, there may still be costs for routine car maintenance, such as tire rotations, brake pad replacements, and fluid top-ups. The maintenance costs can vary based on the specific make and model of the electric car. Speak to your trusted local garage to get the best information possible on vehicle maintenance.

It's worth noting that government policies and incentives can change over time, so it's important to stay updated on the latest regulations and potential financial benefits available to electric vehicle owners in the UK.

Road tax, also known as VED or car tax, is an annual payment imposed on motor vehicles that are used or parked on public roads in the UK.

It is a form of taxation used by governments to generate revenue and contribute to the costs associated with maintaining and improving road infrastructure.

Road tax is calculated based on emissions levels, and those with higher levels will pay more each year. This is because they contribute more to pollution and environmental impact. Since 2025, zero emission vehicles and electric cars have been required to pay for road tax VED. 

According to the Government, some vehicles are exempt from paying vehicle tax each year.

However, you must tax your vehicle even if you do not have to pay.

This is a legal requirement for all owners – ignoring this will lead to legal issues with the police.