How much tax will I pay on an electric car?

Q: What is a car tax band?

A car tax band, also known as a vehicle excise duty (VED) band, is a system used to determine the amount of road tax to be payable on vehicles banded into one of the car tax bands defined by the car's CO2 emissions. It primarily applies to vehicles registered after March 2001 to April 2017. Those cars producing low or zero emissions (such as electric cars) are typically taxed at the lowest rate. Conversely, those vehicles with high emissions (such as older, less efficient petrol and diesel engines) are taxed at the highest rate.

Q: Road tax for cars registered before 1 March 2001

Cars registered before 1 March 2001 are subject to a different road tax system than newer vehicles and based on the car's engine size, with different rates applied. Effectively, vehicles with an engine capacity of up to 1549cc are charged a lower road tax rate than those engines over 1549cc.

Q: Road tax for cars registered after March 2001 and before April 2017

Cars and light vehicles registered between March 2001 and April 2017 are subject to a road tax system based on their CO2 emissions and fuel type, so depending on the CO2 they emit, each vehicle will fall into one of 13 car tax bands lettered from A (less than 100 g/km) to M (more than 255 g/km). As with pre-March 2001 registered vehicles, lower-emission cars are taxable at a lower rate than higher-emission cars. In addition, electric vehicles registered during this period are exempt from road tax, while hybrid cars with low emissions are taxable at a reduced rate.

Q: Road tax for cars registered after April 2017

Overall, the road tax payable on cars registered after April 2017 is quite complex, based on several factors. However, ultimately it's designed to encourage the purchase of more environmentally-friendly vehicles. You will have to pay tax on brand-new cars when registered to cover the first twelve months and then pay road tax every six or twelve months at a different rate. Additionally, vehicles with a list price above £40,000 are subject to an additional cost for the initial five years from year two after registration.

Q: How do I pay my car tax?

It's easy to pay your road tax, keep up to date and avoid driving illegally. You will need readily available several documents, including either the V5C log book, the new keeper's slip from the log book or the V11 reminder, as well as valid MOT and insurance certificates: Online is the quickest and easiest way through the official webpage for the DVLA At the Post Office, if you prefer to pay in person

Q: How to find out which tax band a car is in?

If your vehicle is registered between March 2001 and April 2017, or you're looking to purchase a car that falls within this period, it's easy to find its road tax band. Simply enter the car's registration at Motorscan's free car check to discover the car tax band as well as an abundance of other essential data!

Road tax is not applicable for fully electric cars as they produce zero emissions; they do not contribute to air pollution and are a more eco-friendly option than traditional petrol or diesel cars, so they are exempt.

Related...

What is a car tax band?

Road tax for cars registered before 1 March 2001

Road tax for cars registered after March 2001 and before April 2017

Road tax for cars registered after April 2017

How do I pay my car tax?

How to find out which tax band a car is in?