The days of tax-free electric motoring are ending. The UK has now confirmed a pay-per-mile tax on electric cars from April 2028 — and it comes on top of the road tax EVs already started paying in 2025. Here's exactly what's coming, what it'll cost you, and how it changes the electric-versus-petrol maths.
Quick answer: From April 2028, Electric Vehicle Excise Duty (eVED) charges 3p per mile for fully electric cars and 1.5p per mile for plug-in hybrids, measured by an annual odometer reading (no GPS). That's roughly £210–£360 a year for a typical EV, on top of the standard road tax EVs have paid since April 2025.
What is eVED?
Electric Vehicle Excise Duty is a mileage-based tax on zero-emission cars and plug-in hybrids, confirmed by the government in July 2026 and due to start in April 2028. It exists because petrol and diesel drivers pay fuel duty every time they fill up — a huge revenue stream — while EV drivers pay none. As the fleet goes electric, that revenue falls, and eVED is designed to replace part of it.
| Vehicle type | eVED rate |
|---|---|
| Fully electric car (EV) | 3p per mile |
| Plug-in hybrid (PHEV) | 1.5p per mile |
Rates will rise with CPI inflation from the 2029–30 tax year. The Office for Budget Responsibility expects eVED to raise about £1.1 billion in 2028/29, rising to £1.9 billion by 2030/31.
What it'll cost you
At 3p a mile, the annual bill depends entirely on how far you drive:
| Annual mileage | EV (3p/mile) | PHEV (1.5p/mile) |
|---|---|---|
| 5,000 miles | £150 | £75 |
| 7,000 miles (UK average) | £210 | £105 |
| 10,000 miles | £300 | £150 |
| 12,000 miles | £360 | £180 |
| 15,000 miles | £450 | £225 |
Remember this is in addition to standard Vehicle Excise Duty (road tax), which EVs pay from April 2025 at around £195–£200 a year, plus the expensive car supplement on EVs listed over £50,000.
How it will be measured
Crucially, the plan does not use GPS or telematics tracking. Instead:
- You estimate your annual mileage and pay eVED upfront or in instalments.
- You submit an odometer reading when you renew your vehicle tax.
- The DVLA reconciles your estimate against actual miles at year-end.
So it works much like today's road tax renewal, with a mileage figure attached — no black box, no tracking device.
How it changes the EV-vs-petrol sums
Electric cars still cost far less per mile to "fuel" than petrol or diesel — home charging on a cheap overnight tariff can be a fraction of the cost of a tank. But eVED narrows the gap:
- A petrol car doing 10,000 miles pays fuel duty baked into every litre.
- An EV doing 10,000 miles will pay £300 in eVED from 2028 — real money that didn't exist before.
It doesn't erase the EV running-cost advantage, but it does mean the "electric is basically free to run" era is over. If you're weighing a switch, run the numbers with eVED included:
- Electric vs petrol: cost per mile in 2026
- Is it worth buying an electric car in 2026?
- What it costs to charge an EV at home
Don't miss a tax renewal — free reminders
eVED will be tied to your vehicle tax renewal, so staying on top of tax dates matters more than ever. The free Fuel Near You Garage looks up your car's tax and MOT dates from official DVLA and DVSA records and emails you before they're due — one vehicle free, no card required.
And whether you drive electric or petrol, the live fuel price map and journey planner still help you keep running costs down.
The bottom line
From April 2028, electric cars pay 3p a mile (PHEVs 1.5p) via an annual odometer reading — about £210–£360 a year for most drivers, on top of standard road tax. It's the government replacing lost fuel duty as Britain goes electric. EVs remain cheaper to run than petrol, but the tax-free years are ending — so factor eVED into your next-car decision, and set a free tax reminder so a renewal never catches you out.
Based on the government's confirmed eVED plans as of July 2026 (3p/mile EV, 1.5p/mile PHEV, from April 2028, CPI-linked from 2029–30). Rates and thresholds may be refined before launch — check GOV.UK for the latest.
Frequently Asked Questions
When does the pay-per-mile EV tax start in the UK?
Electric Vehicle Excise Duty (eVED) is due to begin in April 2028. The government confirmed the plan in July 2026. It charges 3p per mile for fully electric cars and 1.5p per mile for plug-in hybrids, and the rates will rise with CPI inflation from the 2029–30 tax year.
How much will the electric car mileage tax cost?
At 3p per mile, a typical EV driver covering 7,000 miles a year would pay about £210, 10,000 miles about £300, and 12,000 miles about £360. Plug-in hybrids pay 1.5p per mile — roughly half those figures. This is on top of standard road tax (VED), which EVs already pay from April 2025.
How will the EV pay-per-mile tax be measured?
Not by GPS or tracking. The government plans for drivers to submit an annual odometer (mileage) reading when they renew their vehicle tax, administered by the DVLA. You estimate your mileage, pay upfront or in instalments, then reconcile against your actual reading at year-end.
Why is the UK taxing electric cars per mile?
As drivers switch from petrol and diesel to electric, the government collects far less fuel duty — a major source of revenue. eVED is designed to replace some of that lost income. The OBR estimated it would raise around £1.1 billion in 2028/29, rising to £1.9 billion by 2030/31.
Do electric cars pay road tax now, before 2028?
Yes. Since 1 April 2025, electric cars pay Vehicle Excise Duty (road tax) like petrol and diesel cars — a low first-year rate then the standard annual rate (around £195–£200). Pricier EVs over £50,000 also pay the expensive car supplement. eVED from 2028 is an additional, mileage-based charge on top of this.