Electric car owners will face road tax charges for the first time from 2026, ending years of exemption as the government moves to plug a growing funding gap for road maintenance.
Vehicle Excise Duty (VED) changes taking effect from April 2026 will see zero-emission vehicles paying the standard annual rate of £190, according to RAC analysis. Electric cars registered from April 2025 onwards will first pay the lowest first-year rate of £10, before moving to the full charge the following year.
The shift marks the end of a key financial incentive that has helped drive electric vehicle adoption across Britain. EVs costing over £40,000 will face an even steeper bill - an additional £410 premium for five years, bringing their total annual VED to £600.
Owners of older petrol and diesel cars registered between March 2001 and March 2017 will also see their bills rise in line with inflation. These vehicles currently pay VED based on CO2 emissions, with increases varying by emission band.
The Treasury says the changes will create a fairer system as traditional fuel duty revenues decline with the shift to electric vehicles. Officials argue that all road users should contribute to infrastructure costs, with the new framework designed to prevent a funding shortfall as petrol and diesel car numbers fall.
However, motoring groups warn the move could slow electric vehicle uptake by removing a major purchasing incentive. The RAC has highlighted particular concerns about the impact on lower-income households, who often rely on older, more affordable vehicles and will face the dual burden of inflation-linked increases and potentially higher costs when eventually switching to electric.