Electric Car Road Tax in 2025
Free road tax for electric vehicles (EVs) has long been a perk for those looking to make the jump from ICE options, but not anymore. As of 1st April 2025, drivers of electric cars in the UK will need to pay road tax for the first time, and those with vehicles priced above £40,000 will also face an additional tax surcharge.
Many of these tax changes will apply retroactively, meaning drivers who have never previously paid VED will need to start doing so from 1 April 2025. We’re looking at what EV owners should expect regarding road tax costs from April 2025 onwards.
Road Tax Costs for EV Owners in 2025
From 1st April 2025, electric vehicle drivers will be required to pay VED for the first time. The standard annual road tax for most EV owners will be £195. However, for those with EVs priced above £40,000, the total cost will rise to £620 per year due to an additional charge.
Understanding Vehicle Excise Duty (VED)
Vehicle Excise Duty, commonly referred to as road tax, is an annual fee levied on vehicles used or parked on public roads in the UK. The tax is then pooled into the government’s central fund and used towards a variety of projects.
VED is traditionally based on emissions, with higher-polluting vehicles incurring greater charges. However, from 2025, even zero-emission vehicles, including electric cars, will be subject to road tax for the first time.
Breakdown of the 2025 VED Changes
New zero-emission cars registered from 1 April 2025 will pay the lowest first-year VED rate, currently set at £10. From the second year onwards, they will transition to the standard annual rate of £195.
Zero-emission cars registered between 1 April 2017 and 31 March 2025 will also be subject to the standard £195 annual VED rate.
The Expensive Car Supplement exemption for EVs ends on 1 April 2025. New zero-emission cars with a list price exceeding £40,000 will be subject to this supplement, adding £425 per year for the first five years, bringing the total road tax to £620 annually.
Zero-emission vehicles registered between 1 March 2001 and 30 March 2017 will move from Band A to Band B, which currently incurs a £20 annual charge.
Electric vans will now be taxed in line with petrol and diesel light goods vehicles, with a standard annual charge of £335 for most models.
Electric motorcycles and tricycles will transition to the lowest engine-size tax band, currently set at £25 per year.
Hybrid and alternative fuel vehicles will have tax rates aligned with standard petrol and diesel cars.
Additional Annual Costs for EV Owners
Beyond road tax, electric vehicle owners should be aware of other recurring expenses, such as:
Charging Costs - Charging an EV at home will impact electricity bills. The cost depends on factors like vehicle efficiency, local electricity prices, and driving habit
Insurance - EV insurance rates vary based on driving history, vehicle type, and the insurance provider.
Maintenance - While EVs typically require less upkeep than traditional petrol or diesel cars, owners still need to budget for routine services such as tire replacements, brake maintenance, and fluid checks.
Since government policies and incentives can change, it’s important for EV owners to stay informed about new regulations and potential benefits.