5,000 miles a year (a low-mileage car)
£150.00 a year (£12.50 a month) in an electric car and £75.00 in a plug-in hybrid. A 40 mpg petrol car pays £329.31 fuel duty at 57.95p a litre, or £395.17 with VAT, so the electric car pays £245.17 less.
Money · Autumn Budget 2026
EV pay-per-mile tax calculator: what 3p a mile costs from April 2028
From 1 April 2028 electric cars will pay Electric Vehicle Excise Duty of 3p a mile and plug-in hybrids 1.5p a mile (GOV.UK), so 8,000 miles a year costs £240.00 in an electric car and £120.00 in a plug-in hybrid, against £632.27 of fuel duty and VAT for a 40 mpg petrol car at 57.95p a litre, the latest published fuel duty rate (from 1 March 2027); GOV.UK has not published the April 2028 rate.
3p a mileeVED on electric cars from 1 April 2028; 1.5p for plug-in hybrids (GOV.UK)
eVED cost by mileage from April 2028
Runs in your browser, with no run limit
Enter the miles you drive in a year. The miles per gallon is only for the petrol comparison: use your own car’s figure, or keep 40 mpg, which is what GOV.UK’s “around 6 pence per mile” average fuel duty works out at.
Result
8,000 miles a year: £240.00 eVED in an electric car (£20.00 a month), £392.27 less than the £632.27 of fuel duty and VAT a 40 mpg petrol car pays (7.90p a mile).
| Car | A year | A month |
|---|---|---|
| Electric car (3p a mile) | £240.00 | £20.00 |
| Plug-in hybrid (1.5p a mile, plus fuel duty on its petrol) | £120.00 | £10.00 |
| Petrol car: fuel duty only | £526.89 | £43.91 |
| Petrol car: fuel duty with the 20% VAT on it | £632.27 | £52.69 |
eVED rates from HM Treasury’s policy paper (13 July 2026); they rise with CPI from 2029 to 2030, and no later rate has been published. Petrol fuel duty at 57.95p a litre, the rate from 1 March 2027 (HMRC); GOV.UK has not published the rate for April 2028. VAT at 20% applies to fuel duty at the pump but not to eVED, which is collected with Vehicle Excise Duty (road tax). Plug-in hybrids also pay fuel duty on the petrol they use, which is not included here.
Worked answers
Three worked answers from this calculator
Each answer is the calculator’s own output, and each button loads its miles and mpg above. Petrol figures use 57.95p a litre, the latest published fuel duty rate (from 1 March 2027); GOV.UK has not published the April 2028 rate.
8,000 miles a year (GOV.UK’s average petrol car comparison)
£240.00 a year (£20.00 a month) in an electric car and £120.00 in a plug-in hybrid. A 40 mpg petrol car pays £526.89 fuel duty at 57.95p a litre, or £632.27 with VAT, so the electric car pays £392.27 less.
12,000 miles a year (a high-mileage driver)
£360.00 a year (£30.00 a month) in an electric car and £180.00 in a plug-in hybrid. A 40 mpg petrol car pays £790.34 fuel duty at 57.95p a litre, or £948.41 with VAT, so the electric car pays £588.41 less.
GOV.UK rates
eVED rates from 1 April 2028
HM Treasury, 13 July 2026: “From 1 April 2028, eVED a new mileage-based charge will apply to BEVs, PHEVs, and HFCEVs that are cars.”
| Car | 2028 to 2029 | 2029 to 2030 onwards |
|---|---|---|
| Battery electric (and hydrogen fuel cell) car | 3p | Not yet published (rises with CPI) |
| Plug-in hybrid car | 1.5p | Not yet published (rises with CPI) |
- How you pay: drivers “provide an odometer (mileage) reading” and “estimate their mileage for the forthcoming tax period (typically a year)”, then pay up front or spread the payment, with the year-end reading “triggering a reconciliation” (HM Treasury). There is no tracker: the government says there is “no requirement to report where and when miles are driven or install trackers in cars” (Budget 2025). HM Treasury: Electric Vehicle Excise Duty (eVED).
- What GOV.UK compares it with: “The rates on petrol and diesel for the average car equates to around 6 pence per mile; the average petrol and diesel driver pays around £480 per year in fuel duty”, and “The average EV driver drives around 8,900 miles per year” (eVED consultation). Budget 2025: “an average EV driver will pay around £240 per year or £20 per month.” HM Treasury: eVED consultation; Budget 2025.
- Who pays: cars only. “Other vehicle types, such as vans, buses, motorcycles, coaches and HGVs, will be out of scope of eVED when it is introduced” (Budget 2025). You pay it when you first renew your Vehicle Excise Duty after April 2028.
Before you rely on it
If the 28 October 2026 Budget changes this
The Autumn Budget is on Wednesday 28 October 2026. If it changes the eVED rates or start date, an “Announced on 28 October” section is added to this page that day from GOV.UK’s Budget documents, and the page’s updated date changes. Until then the page uses the rules GOV.UK published before the Budget.
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Helpful answers
EV pay-per-mile FAQs.
How much is the EV pay-per-mile tax?
3p a mile for battery electric (and hydrogen) cars and 1.5p a mile for plug-in hybrids, from 1 April 2028. It rises with CPI inflation from 2029 to 2030. At 8,900 miles a year, GOV.UK’s average for an electric car, that is £267.00 a year.
When does the EV mileage charge start?
1 April 2028. You pay it alongside your Vehicle Excise Duty (road tax) when you first renew after that date, by giving a mileage reading and an estimate of your miles for the year ahead.
Is eVED cheaper than fuel duty on a petrol car?
Yes at the published rates. GOV.UK says it is around half the fuel duty the average petrol or diesel driver pays a mile. At 12,000 miles a year an electric car pays £360.00, while a 40 mpg petrol car pays £948.41 in fuel duty and the VAT on it at 57.95p a litre, the latest published fuel duty rate (from 1 March 2027); GOV.UK has not published the April 2028 rate.
Do plug-in hybrids pay eVED and fuel duty?
Yes. Plug-in hybrid cars pay eVED at 1.5p a mile on all their miles, and the petrol they burn still carries fuel duty at the pump.
Could the 28 October 2026 Budget change eVED?
It could. If GOV.UK’s Budget documents change the eVED rates or start date, this page adds an “Announced on 28 October” section that day and shows the new figures.
Sources, opened 22 October 2026: HM Treasury, Electric Vehicle Excise Duty (eVED) policy paper (13 July 2026); HM Treasury, eVED consultation response (13 July 2026); HM Treasury, eVED consultation (26 November 2025); HM Treasury, Budget 2025; HMRC, Amended Fuel Duty rates: 2026 to 2027 (22 May 2026). Contains public sector information licensed under the Open Government Licence v3.0. An estimate, not financial advice.