UK Pay-Per-Mile Road Tax: What EV Drivers Will Pay in 2026 & 2028

UK Pay-Per-Mile Road Tax: What EV Drivers Will Pay in 2026 & 2028

Introduction
The Autumn 2025 Budget sent shockwaves through the EV community with the announcement of a new “mileage-based” tax system. As we enter 2026, the headlines are full of “pay-per-mile” warnings, but what is the actual reality for your wallet? At ONEEV, we’ve cut through the political noise to show you exactly what you’ll pay this year and how to prepare for the 2028 transition.

1. The 2026 Reality: Vehicle Excise Duty (VED)

For 2026, the pay-per-mile system is not yet active. Instead, EVs have been moved into the standard tax brackets:

Standard Rate: Most EV drivers will pay £195 per year.

The £50k Threshold: Thanks to a late 2025 update, the “Expensive Car Supplement” now only kicks in for EVs over £50,000, saving many family car owners £425/year.

2. The 2028 Transition: 3p Per Mile

Chancellor Rachel Reeves confirmed that from April 2028, a new mileage levy will be introduced for EVs and Plug-in Hybrids.

The Rate: 3p per mile for full EVs.

The Cost: If you drive the UK average of 8,000 miles a year, you will pay £240 annually in mileage tax.

How it’s tracked: Likely via your annual MOT mileage check, meaning no “GPS tracking boxes” are required for most drivers.

3. Is it still cheaper than Petrol?

Yes. Petrol and Diesel drivers currently pay 52.95p per litre in Fuel Duty. When you calculate the per-mile cost of Fuel Duty, a petrol driver pays roughly 6p-8p per mile in tax alone.

Expert View: “Even with the 2028 mileage tax, an EV driver is still paying 50% less tax per mile than a petrol driver. When you add the fuel savings, the electric car remains the clear financial winner.” — ONEEV Policy Team.