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Pay-per-mile tax for electric cars (eVED) explained
From 1 April 2028, Electric Vehicle Excise Duty (eVED) will charge 3p a mile for battery electric and hydrogen cars and 1.5p a mile for plug-in hybrids, on top of normal road tax. At 8,000 miles a year, that is £240 for an electric car. The government confirmed the plan in July 2026 after a consultation.
Who pays
eVED applies to cars that are fully electric, plug-in hybrid or hydrogen-powered. It is an extension of the existing vehicle tax system rather than a separate scheme. Petrol and diesel cars do not pay it, because their drivers already pay fuel duty at the pump.
The rates
| Car type | Rate from 1 April 2028 | At 8,000 miles a year | At 12,000 miles a year |
|---|---|---|---|
| Fully electric or hydrogen | 3p a mile | £240 | £360 |
| Plug-in hybrid | 1.5p a mile | £120 | £180 |
The rates will rise with inflation (CPI) from 2029/30.
Why it is being introduced
Fuel duty receipts are expected to fall towards zero as drivers switch to electric cars. The government says eVED is designed so electric and plug-in hybrid drivers contribute to the roads while still paying less than the equivalent fuel duty on petrol and diesel.
How mileage will be counted
The government has said eVED will work through the vehicle tax system without in-car tracking, and the consultation looked at using MOT odometer readings to check mileage. Check the GOV.UK policy paper for the final details before April 2028.
What it means for buying a car now
If you are comparing an electric car with a petrol or hybrid, include eVED from 2028 in your running costs. For most drivers, charging at home is still much cheaper per mile than petrol, even with eVED added.
Frequently asked questions
Will there be a pay-per-mile charge for electric cars?
Yes. From 1 April 2028, Electric Vehicle Excise Duty (eVED) will charge 3p a mile for fully electric and hydrogen cars and 1.5p a mile for plug-in hybrids, on top of road tax.
How much will eVED cost me?
At 3p a mile, a driver doing 8,000 miles a year would pay £240, and 12,000 miles would cost £360. Plug-in hybrids pay half that.
Does eVED replace road tax?
No. eVED is paid on top of vehicle tax (VED), as an extension of the same system.
Will I need a tracker in my car for eVED?
No. The government has said eVED will not need in-car tracking. Mileage checks at MOT tests were considered in the consultation.
Official sources
- GOV.UK / HM Treasury: Electric Vehicle Excise Duty (eVED) policy paper, 13 July 2026
- GOV.UK: eVED consultation response, 13 July 2026
- House of Commons Library: Electric vehicle excise duty (eVED) briefing
Related
- Do electric cars pay road tax?
- Electric Car Grant and EV tax in the UK
- How much does public EV charging cost?
- Pure EV vs hybrid vs plug-in hybrid
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Page reviewed 2026-09-23. See how we check and our sources. General information, not financial, legal or technical advice.