Last checked September 2026. Rates are for the 2026/27 tax year. The Autumn Budget on 28 October 2026 could bring changes.
Electric cars used to be tax-free on the road. Not any more. Since April 2025 EVs have paid vehicle excise duty like everyone else, and from April 2028 a new pay-per-mile charge is coming on top. Here is exactly what you will pay to tax a Chinese electric car, hybrid or plug-in hybrid, and how to avoid the costly expensive-car supplement.
Car tax at a glance, 2026/27
| Type of car | First year | Every year after | Expensive car supplement |
|---|---|---|---|
| Electric | £10 | £200 | £440 a year if list price over £50,000 |
| Plug-in hybrid (1-50g/km) | £115 | £200 | £440 a year if list price over £40,000 |
| Self-charging hybrid (typically 91-130g/km) | £365 to £455 | £200 | £440 a year if list price over £40,000 |
| Petrol (e.g. 151-170g/km) | £1,410 | £200 | £440 a year if list price over £40,000 |
The £200 standard rate is the same for every car registered since April 2017, whatever it runs on. The first-year rate depends on CO2 emissions, which is why electric cars pay just £10 and plug-in hybrids £115.
The expensive car supplement
If a car’s list price is over the threshold, you pay an extra £440 a year for five years, starting from the second year. For electric cars the threshold rose to £50,000 from April 2026. For hybrids, plug-in hybrids and petrol cars it stays at £40,000.
That makes a real difference for Chinese cars, many of which are priced just under £50,000:
- BYD Seal Design (£45,730) and Excellence (£48,730): under the £50,000 EV threshold, so no supplement.
- BYD Sealion 7 Comfort (£46,990): no supplement. Design (£51,990) and Excellence (£58,990): £440 a year for five years.
- Omoda 9 and Jaecoo 8 plug-in hybrids (around £45,000): over the £40,000 hybrid threshold, so they pay the supplement.
The threshold is based on the list price including options, not the price you negotiate, so a big dealer discount does not help.
Pay-per-mile tax from 2028 (eVED)
The government confirmed in July 2026 that a new Electric Vehicle Excise Duty will start on 1 April 2028:
- Electric cars: 3p per mile.
- Plug-in hybrids: 1.5p per mile, lower because they already pay fuel duty on the petrol they use.
- It is charged on top of normal car tax.
- You estimate your mileage when you tax the car and pay upfront or in instalments; it is checked against your odometer at the MOT, with any difference settled. There are no tracking devices.
- Rates will rise with inflation from 2029/30.
For a typical driver doing 10,000 miles a year, that is £300 a year for an EV and £150 for a plug-in hybrid. Even so, electric cars remain far cheaper to run than petrol cars when charged at home. See our EV tariffs guide.
Worked example: taxing a BYD Dolphin Surf
A BYD Dolphin Surf bought in 2026 costs £10 to tax in the first year and £200 a year after that. From April 2028, driving 8,000 miles a year would add £240 in pay-per-mile tax, bringing the total to £440 a year. A comparable petrol supermini would pay £200 a year in car tax plus around £400 in fuel duty over the same distance, on top of the cost of the fuel itself.
Company car drivers
Company car tax works differently and is still very low for electric cars. See our guide to company car tax on Chinese EVs and hybrids.
Frequently asked questions
Do electric cars pay road tax in 2026?
Yes. Since April 2025, new electric cars pay £10 in the first year and the standard rate, £200 in 2026/27, after that.
What is the expensive car supplement for electric cars?
An extra £440 a year for five years on EVs with a list price over £50,000. The threshold is £40,000 for other cars.
When does pay-per-mile tax for EVs start?
On 1 April 2028. Electric cars will pay 3p per mile and plug-in hybrids 1.5p per mile, on top of normal car tax.
Is a plug-in hybrid cheaper to tax than a petrol car?
In the first year, yes: £115 against £1,000 or more for many petrol SUVs. After that, both pay the same £200 standard rate, and plug-in hybrids will pay 1.5p per mile from 2028.