If you are an EV driver in the UK, 2026 is the year you stop asking “Do EVs pay road tax?” and start asking the more annoying question: “How much am I paying, and when?” The VED exemption ended from 1 April 2025, and the rules have now settled into a new normal.
At the same time, the ZEV mandate is pushing manufacturers into heavy discounting and sudden pricing shifts as brands try to hit targets. That is why buyers keep seeing “end of quarter” deals appear out of nowhere.
1) EV VED in 2026: the rates you actually pay
If your EV is registered on or after 1 April 2025
- First year: £10 (lowest first-year rate)
- From the second tax payment onwards: £195 per year (standard rate)
If your EV was registered between 1 April 2017 and 31 March 2025
- Annual VED: £195 per year
If your EV was registered between 1 March 2001 and 31 March 2017
- Annual VED: £20 per year
2) The “Luxury Car Tax” problem, and the April 2026 change
If your car’s list price is above the Expensive Car Supplement threshold, you pay an additional charge on top of the standard rate for a fixed period. Many consumer guides describe the extra charge as £425 per year for eligible vehicles.
The key update is that from 1 April 2026, the threshold for zero-emission cars increases so that EVs with a list price above £40,000 but not above £50,000 will no longer pay the supplement for licences starting on or after that date (where it is not a first vehicle licence).
Practical takeaway: if you are shopping around the £40,000 to £50,000 mark, timing can materially change what you pay over the first few years.
3) ZEV mandate: why prices can swing
The ZEV mandate target share has been set at 28% for manufacturers, and industry reporting shows the market leaning on significant incentives to drive EV demand. That pressure is why you see sudden dealer contributions and “in-stock” clearance behaviour, particularly around reporting periods.
If you are flexible on colour and spec, waiting for a deal can pay off. If you need a specific configuration or a fixed delivery date, waiting can also backfire.
4) The post-tax era: focus on Total Cost of Ownership
VED is now part of EV ownership. The smartest way to think about value is Total Cost of Ownership (TCO), not just list price. You win by controlling what you pay to buy the car, what you pay annually, and what you pay to fuel it.
The ONEEV integration
If tax makes ownership feel heavier, your best counterweight is energy cost. ONEEV helps you reduce the part of ownership you can control daily: charging cost and charging reliability. By finding the cheapest usable energy and helping you avoid wasted stops, you can offset the new VED reality with lower running costs, especially if you charge away from home regularly.
Bottom line
- EV VED rules changed from 1 April 2025.
- Many EV drivers will pay £195 per year, with £10 first-year VED for EVs registered from April 2025.
- From April 2026, the Expensive Car Supplement threshold for zero-emission cars shifts so many EVs between £40,000 and £50,000 avoid the supplement.
- ZEV mandate pressure can trigger meaningful discounts as manufacturers chase targets.
FAQs
Do EVs pay road tax (VED) in 2026?
Yes. From 1 April 2025, electric cars are no longer exempt from VED. The amount you pay depends on when the car was first registered and its list price.
What are the EV road tax rates from April 2025?
EVs registered on or after 1 April 2025 pay £10 in the first year and £195 per year from the second tax payment onwards. EVs registered between 1 April 2017 and 31 March 2025 pay £195 per year.
What is the “luxury car tax” threshold for EVs in 2026?
The Expensive Car Supplement has historically applied above £40,000 list price, but from 1 April 2026 the threshold for zero-emission cars increases so EVs priced above £40,000 but not above £50,000 do not pay the supplement for licences starting on or after that date (where it is not a first vehicle licence).
Does the ZEV mandate cause car price drops?
It can. When manufacturers are behind targets, incentives often increase to stimulate demand, which is why buyers see sudden discounting or strong quarter-end deals.
How can ONEEV help in the post-tax era?
ONEEV helps drivers reduce charging cost and avoid unreliable stops, which can offset the impact of new ownership costs such as VED, especially for drivers who charge away from home regularly.
Helpful links
External references: GOV.UK: vehicle tax for electric vehicles, GOV.UK: EV expensive car supplement threshold change (April 2026), RAC: EV road tax guide, Financial Times: incentives and ZEV target context.
