Car tax guide

Pay per mile car tax UK

The UK government has proposed a new mileage-based Electric Vehicle Excise Duty, often searched for as pay per mile car tax, pay per mile tax UK, or pay per mile road tax. This guide explains what is changing, who could pay, and how to estimate the annual cost.

Use the calculator View all guides

Pay per mile road tax, UK pay per mile tax, or eVED?

These phrases are usually describing the same proposed change. People may search for pay per mile road tax, road tax pay per mile, pay per mile road tax UK, UK pay per mile tax, or pay per mile car tax UK. The official policy name is Electric Vehicle Excise Duty.

It is not a general road pricing scheme for every car at launch. The proposal is a mileage-based VED add-on for electric and plug-in hybrid cars, with ordinary petrol, diesel, and standard hybrid cars continuing to pay fuel duty when fuel is bought.

What is pay per mile car tax?

The official name is Electric Vehicle Excise Duty, or eVED. It is proposed as a mileage-based add-on to Vehicle Excise Duty for UK-registered electric cars and plug-in hybrid cars from 1 April 2028.

The policy is designed to replace some fuel-duty revenue as more drivers move to electric vehicles. Petrol and diesel drivers already pay fuel duty through the pump, so the government wants EV and plug-in hybrid drivers to make a usage-based contribution as well as paying ordinary VED.

The proposal is not a tracker-based road pricing scheme. The consultation says drivers would estimate mileage when renewing VED, pay alongside VED, then reconcile actual mileage later using odometer readings and MOT-style checks.

What changed for electric and hybrid car tax already?

EVs now pay VED

From 1 April 2025, electric, zero and low emission vehicles became subject to vehicle tax.

New EV first year

Electric cars registered from 1 April 2025 pay the lowest first-year rate, then the standard rate after that.

Older EVs

Electric cars registered from April 2017 to March 2025 moved to the standard annual VED rate.

Hybrid discount removed

The former annual discount for hybrids and alternatively fuelled vehicles has been removed.

Which vehicles are in scope?

The proposal covers UK-registered battery electric cars and plug-in hybrid electric cars. Other vehicle types, including vans, buses, coaches, motorcycles and HGVs, are not expected to be in scope when eVED starts.

Standard hybrids are treated differently from plug-in hybrids. If a car cannot be plugged in and its external energy source is petrol or diesel, it is not proposed to pay eVED because those miles already involve fuel duty.

The government says it will publish a fuller list of vehicles subject to eVED in due course, so the exact operational rules may still change.

How mileage could be checked

The proposed system would ask motorists to estimate mileage for the year ahead when renewing VED. If they underestimate or overestimate, the system would reconcile the difference later.

For cars already old enough to need an MOT, the consultation says MOT mileage data is expected to be used for checks. For newer cars, the government is considering additional mileage checks around the first and second registration anniversaries.

That is why a calculator based on current odometer mileage and the most recent MOT mileage can give a useful estimate before eVED begins.

Trust and sources

This guide was last reviewed on 12 May 2026. It is for planning only and reflects a proposed policy that may change before eVED starts.

Useful checks include GOV.UK’s guidance on vehicle tax for electric and low-emission vehicles, the HM Treasury consultation on Electric Vehicle Excise Duty, and the House of Commons Library briefing on electric vehicle tax.

GOV.UK guidance says electric, zero and low emission vehicles have paid vehicle tax since 1 April 2025. The eVED consultation described a 3p per mile rate for electric cars, a 1.5p per mile rate for plug-in hybrids, no mandatory trackers, and mileage reporting alongside VED renewals.

Ready to test your own mileage?

Estimate your pay per mile car tax

Use the calculator to compare current VED, proposed EV and plug-in hybrid mileage charges, fuel-tax equivalents, and an annual mileage estimate from your MOT.

Open calculator