Pay-per-mile tax for electric cars: eVED explained
From 1 April 2028, electric cars will pay 3p for every mile they are driven and plug-in hybrids 1.5p. It is called Electric Vehicle Excise Duty, or eVED, and it is collected through the same DVLA renewal as car tax. Petrol and diesel cars, and vans, are not included.
Updated 31 October 2026 · By Odomint
Who pays, and how much
eVED applies to cars registered in the UK that are fully electric, plug-in hybrid or hydrogen fuel cell. Electric and hydrogen cars pay 3p a mile. Plug-in hybrids and range extenders pay 1.5p a mile, because they still pay fuel duty on the petrol or diesel they burn and the government says tracking which miles were electric would be impractical.
Vans, buses, coaches and lorries are out of scope when it starts, and so are special-purpose cars such as hearses and campervans. From the 2029 to 2030 tax year the rate will rise each year with inflation.
It is charged on top of the car tax electric cars already pay, not instead of it. HM Treasury describes eVED as an extension of vehicle excise duty, and the consultation response talks about penalties when "both VED and eVED" go unpaid.
What it will cost you
Multiply your yearly miles by the rate. In an electric car, 5,000 miles is £150 a year, 7,500 miles is £225, 10,000 miles is £300 and 15,000 miles is £450. In a plug-in hybrid, halve each figure.
The average car in Britain does around 7,000 to 7,500 miles a year on Department for Transport figures, which puts a typical electric car at a little over £200 a year in eVED, on top of the £200 standard rate of car tax.
How your miles are counted
At each car tax renewal you will give a mileage reading from the odometer and an estimate of how far you expect to drive in the year ahead. The DVLA works out the charge from your estimate. You can pay it monthly, every six months or once a year. The charge starts from your first car tax renewal on or after 1 April 2028.
If you are going to drive more than you estimated, you can top up during the year. At the next renewal, the new reading settles it: if you underpaid, you pay the balance at the current rate; if you overpaid, the difference usually carries forward as a credit. At launch a cash refund is only available in narrow cases: an unforeseen change in your finances, a refund over £100, and a declaration of financial hardship. The government says it will set out more refund cases later.
Readings are checked against the mileage recorded at MOTs. A car too new for an MOT gives a reading at each renewal, which is checked against its first MOT. In Northern Ireland that first test comes at four years rather than three.
Will my car be tracked?
No tracking device is required. The system runs on odometer readings and MOT records. The government says using mileage that cars already report through their built-in connectivity will be optional, and that for people who opt in it will only seek to collect data that supports running the tax.
Miles driven abroad count. The government chose privacy and simplicity over a system of checks to deduct them, and estimates they are about 2 per cent of the miles UK cars drive.
Buying or selling an electric car
Any eVED you have paid in advance stays with the car when it changes hands. A seller can settle what they owe with a top-up before the sale, and a buyer will be able to check a car’s eVED status and the mileage paid for on the DVLA’s vehicle enquiry service. Automatic refunds when a car is sold will not be available when the tax starts.
The government also plans to make tampering with an odometer a specific offence, with simple odometer checks at the MOT.
Getting your estimate right
The best guide to next year is last year. Every MOT records the odometer reading, so the gap between your last two tests is your real yearly mileage. Odomint shows the reading from every MOT on record for your car, free from the number plate, and with Premium its mileage tracker records the miles you actually drive.
Odomint does not pay or file eVED for you. Payment will be through the DVLA when the scheme starts.
Is it law yet?
Not yet. The government will bring in primary legislation amending the Vehicle Excise and Registration Act 1994, and details can change before April 2028. The figures here are from HM Treasury’s policy paper, last updated on 28 October 2026, and the consultation response published on 13 July 2026.
Common questions
When does pay-per-mile tax start?
On 1 April 2028, for fully electric, hydrogen and plug-in hybrid cars registered in the UK.
How much is pay-per-mile tax?
3p a mile for electric and hydrogen cars and 1.5p a mile for plug-in hybrids, rising with inflation from 2029 to 2030. At 10,000 miles a year that is £300 for an electric car.
Does pay-per-mile apply to petrol and diesel cars?
No. Petrol and diesel cars pay fuel duty at the pump instead. Plug-in hybrids pay a reduced rate because they pay both.
Do electric cars still pay normal car tax?
Yes. eVED is charged alongside vehicle excise duty, not instead of it. Electric cars have paid the standard rate of car tax since April 2025.
Does pay-per-mile apply to vans?
No. Vans, buses, coaches and lorries are out of scope when it starts.
Do miles driven abroad count?
Yes. The government decided not to deduct them, putting privacy and simplicity ahead of checking where a car has been.
Your MOT and tax dates, with a reminder before each
Add your number plate and Odomint reads your MOT and tax dates from the DVSA and DVLA, shows every past MOT result and advisory, and reminds you before each one is due. Free for one car.
Sources
Every figure on this page was checked against these on 31 October 2026.
- HM Treasury: Electric Vehicle Excise Duty (eVED) policy paper
- HM Treasury: eVED consultation response, July 2026
- GOV.UK: Vehicle tax rate tables