A DVLA car tax exemption has ended with electric car drivers facing a £200 flat fee. Since last April, EVs are no longer exempt from VED. This change means all EV owners need to pay car tax, with rates depending on the vehicle’s registration date.
Electric, zero, or low-emission cars registered on or after 1 April 2025 paid £10 from 1 April 2025. From the second payment onwards, they will pay £195. This is the standard rate.
Electric, zero, or low-emission cars registered between 1 April 2017 and 31 March 2025 pay the standard rate of £195. Electric, zero, or low-emission cars registered between 1 March 2001 and 31 March 2017 ppay £20 to tax these vehicles.
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Nearly half of what motorists pay for fuel is tax. The rate of fuel duty is 52.95p per litre, but this is set to rise in September 2026. The average price of petrol at the time of writing is 153.2p per litre.
The demand for electric vans and cars has accelerated over the past few years. In fact, over 473,000 electric vehicles were registered in 2025 with a market share of 23.4%. But motorists could be put off buying EVs because of the new tax.
The RAC advises: “From 1 April 2026, the standard tax rate for all petrol, diesel or hybrid cars registered after 1st April 2017 rises to £200.
“If you pay for six months tax, it’ll cost £110, or £105 if you opt to set up a direct debit. If you pay in 12 monthly instalments your total car tax cost will be £210.
“If your vehicle had a list price that exceeded £40,000 when it was first sold (or £50,000 if your car is electric) then you may also be liable for the ‘luxury car tax’ fee, which now adds £440 to the vehicle’s annual VED costs – taking it up to £640.
“You may pay less or more if your car was first used before 2017. The exact fee for your annual road tax will boil down to the year your car was first registered, the type of fuel it uses and its tailpipe emissions. Below, we detail the bands and the payment amount.
“Electric cars no longer qualify for free road tax, and in April 2026 drivers of electric cars under a year old will start paying the £200-a-year flat rate.”
