Pay-per-mile for electric cars from April 2028: how eVED will work
By Juan Pedro Nguema · Updated
This article is being reviewed for updates.
In short: From April 2028, drivers of electric cars will pay a new tax called Electric Vehicle Excise Duty (eVED): 3p per mile for fully electric cars and 1.5p per mile for plug-in hybrids. The government confirmed the design in July 2026.
Who pays?
| Vehicle | Rate |
|---|---|
| Fully electric car | 3p per mile |
| Hydrogen fuel cell car | 3p per mile |
| Plug-in hybrid (PHEV) | 1.5p per mile |
| Range-extender electric car | 1.5p per mile |
Not included at the start: vans, buses, coaches and lorries; cars converted from petrol or diesel; and special-purpose vehicles such as hearses and campervans.
Rates will rise with inflation (CPI) each year from 2029-30.
How will they know how far I drive?
- When you renew your car tax, you give an odometer reading and an estimate of how far you'll drive in the next year.
- If your car has an MOT, the MOT mileage is used to check your figures.
- Cars under 3 years old don't have separate mileage checks at the start, but DVLA can ask for an official check if it suspects someone isn't telling the truth.
- If you drive more than you estimated, you pay the difference. If you drive less, the unused miles are usually carried forward.
How do I pay?
Monthly, every six months or once a year, through the same DVLA channels as car tax.
Worked examples
- Electric car, 7,000 miles a year: 7,000 × 3p = £210 a year in eVED.
- Plug-in hybrid, 7,000 miles a year: 7,000 × 1.5p = £105 a year.
This is in addition to normal vehicle tax. Check the Budget on 28 October 2026 for any changes, and we'll update this page.
What it means for car values
Running costs affect what buyers will pay. For used electric cars, a known pay-per-mile cost makes total cost of ownership easier to compare with petrol cars. Mileage records matter more than ever, so keep MOT and service records safe; they help you sell later.
