eVED Explained: What the UK’s 3p-a-Mile EV Tax Will Really Cost You
From April 2028, UK electric cars pay 3p for every mile. We worked out what eVED adds at every mileage, how it changes EV vs petrol running costs, and the point at which petrol becomes cheaper.
In this article
From 1 April 2028, every electric car in the UK will pay a new tax for every mile it drives. HMRC confirmed the design of Electric Vehicle Excise Duty (eVED) on 13 July 2026: 3p a mile for battery EVs and 1.5p for plug-in hybrids. We used our calculator to work out what it adds at different mileages, how it changes the cost per mile against petrol, and when an EV stops being the cheaper choice.
The short answer
eVED costs £222 a year at average UK mileage. For a typical family EV, that cancels out its 10-year saving over petrol.
An EV charged at home on the price cap still costs about 10.3p a mile including eVED, against 16.4p for a 48-mpg petrol car. But over ten years, eVED adds about £1,900. That turns an EV saving of about £1,900 into a near tie. Drivers who cover high mileage or charge on an off-peak tariff still come out well ahead.
What is eVED and when does it start?
eVED is a mileage-based charge added on top of standard vehicle tax (VED). According to HMRC’s policy paper:
- It starts on 1 April 2028 and covers battery-electric, plug-in hybrid and hydrogen cars. Existing EVs pay too, from their first VED renewal after that date.
- The rate is 3p a mile for battery-electric and hydrogen cars, and 1.5p for plug-in hybrids.
- It rises with inflation (CPI) from 2029–30 onwards.
- You’ll pay when you renew your tax: you give your odometer reading and an estimate of your mileage for the year. You can pay upfront or spread it over the year, and the next reading settles any difference. The DVLA will check your estimates against MOT mileage records.
The government says eVED is meant to replace the fuel duty that EV drivers don’t pay. HMRC expects it to raise £1.1 billion in 2028–29, rising to about £2.3 billion by 2031–32.
How much eVED will you pay?
| Miles a year | Battery EV (3p) | Plug-in hybrid (1.5p) | Per month (EV) |
|---|---|---|---|
| 5,000 | £150 | £75 | £12.50 |
| 7,400 (about the UK average) | £222 | £111 | £18.50 |
| 10,000 | £300 | £150 | £25 |
| 15,000 | £450 | £225 | £37.50 |
| 20,000 | £600 | £300 | £50 |
2028–29 rates. From 2029–30 they rise each year in line with CPI inflation. Standard VED is charged on top.
Cost per mile: EV with eVED vs petrol
This is the comparison that matters day to day. We assume an EV that does 3.6 miles per kWh and a petrol car that does 48 mpg, with petrol at 173p a litre.
| How you fuel | Energy | + eVED | Total per mile |
|---|---|---|---|
| EV, off-peak EV tariff (8p/kWh) | 2.2p | 3p | 5.2p |
| EV, home on the price cap (26.32p/kWh) | 7.3p | 3p | 10.3p |
| EV, 85% home + 15% rapid charging | 9.5p | 3p | 12.5p |
| Petrol hybrid, 60 mpg | 13.1p | — | 13.1p |
| Petrol, 48 mpg | 16.4p | — | 16.4p |
| Petrol, 40 mpg | 19.7p | — | 19.7p |
| EV, rapid chargers only (79p/kWh) | 21.9p | 3p | 24.9p |
Electricity prices move every quarter. Ofgem’s cap for October to December 2026 is 26.32p/kWh, with no VAT on electricity until 31 March 2027. The January–March 2027 cap will be announced by 25 November. Even if it rose 20%, home charging would cost about 11.8p a mile including eVED, which is still well below petrol.
10-year cost: does an EV still save money?
We compared a typical family EV costing £34,000 (£30,250 after the £3,750 Electric Car Grant) with a £28,000 petrol car that does 48 mpg. Both are financed with 10% down at 8.9% APR over 48 months and driven 7,400 miles a year. eVED starts in month 18 (April 2028).
| Cost over 10 years | Electric | Petrol |
|---|---|---|
| Purchase price (after grant) | £30,250 | £28,000 |
| Loan interest | £5,233 | £4,844 |
| Charging / petrol | £7,703 | £13,276 |
| Servicing | £3,500 | £5,500 |
| Insurance | £7,800 | £6,800 |
| VED + eVED | £3,856 (incl. £1,905 eVED) | £1,950 |
| Resale after 10 years | −£5,780 (17%) | −£7,840 (28%) |
| Total cost of ownership | £52,561 | £52,530 |
Without eVED, the EV would be about £1,870 cheaper over ten years. With eVED, the two finish within £31 of each other. In other words, at average mileage eVED absorbs almost exactly what an EV saves.
Work out your own eVED
Our calculator adds eVED automatically for UK drivers from April 2028. These figures are pre-filled. Change the mileage, tariff and car prices to match yours.
Who still saves with an EV after eVED?
| Scenario (10 years) | Electric | Petrol | Cheaper |
|---|---|---|---|
| Average driver: 7,400 mi/yr, home charging on the cap | £52,561 | £52,530 | Level (petrol by £31) |
| 10,000 mi/yr | £55,937 | £57,195 | EV by £1,258 |
| 15,000 mi/yr | £62,429 | £66,165 | EV by £3,736 |
| Off-peak EV tariff (8p/kWh, 95% home) | £47,458 | £52,530 | EV by £5,072 |
| No home charger (80% rapid charging) | £60,268 | £52,530 | Petrol by £7,738 |
The pattern is clear. eVED takes a fixed 3p from every mile, but the EV’s fuel saving also grows with every mile. So the more you drive, the more an EV still saves. What matters most is where you charge. An off-peak home tariff is worth far more than eVED costs. Relying mainly on rapid chargers makes an EV more expensive to run than petrol, with or without eVED.
What about plug-in hybrids?
PHEVs pay half the rate, 1.5p a mile, on every mile, including miles driven on petrol. A PHEV covering 7,400 miles a year will pay £111 in eVED on top of the fuel duty already included in the petrol it buys. If you rarely plug in, a PHEV becomes harder to justify after 2028.
Watch: eVED explained
FAQ
When does eVED start?
On 1 April 2028. Existing EVs pay from their first VED renewal after that date.
How much is eVED per mile?
3p a mile for battery-electric and hydrogen cars, and 1.5p for plug-in hybrids, in 2028–29. From 2029–30 the rate rises each year with CPI inflation.
How will the DVLA know my mileage?
At each tax renewal you’ll give an odometer reading and estimate the year’s mileage. The government plans to check this against MOT mileage records, and the next reading reconciles any difference.
Do I still pay normal VED on an EV?
Yes. EVs have paid standard VED since April 2025, and eVED is charged on top of it.
Is an EV still cheaper than petrol after eVED?
Per mile, yes, as long as most of your charging is at home: about 10.3p a mile on the price cap or 5.2p on an off-peak tariff, against 16.4p for a 48-mpg petrol car. Over ten years at average mileage, our example EV and petrol car finish level. Higher mileage or off-peak charging puts the EV ahead.
How we calculated this
- eVED rules: HMRC policy paper, updated 28 October 2026. We keep 3p a mile flat in today’s money, so CPI uprating from 2029–30 would add a little.
- Electricity: Ofgem price cap 26.32p/kWh (October–December 2026); rapid charging 79p/kWh; an off-peak EV tariff example at 8p/kWh. Prices rise 2% a year.
- Petrol: 173p a litre (UK average, early November 2026), rising 2% a year.
- Cars: an EV at 3.6 mi/kWh, £34,000 before the £3,750 Electric Car Grant; a petrol car at 48 mpg, £28,000. Both financed with 10% down at 8.9% APR over 48 months.
- Estimates (replace them with your own quotes): insurance £780/yr for the EV and £680/yr for petrol; servicing £350/yr and £550/yr; VED £195/yr for both; resale 17% for the EV and 28% for petrol after 10 years.
This is a cost analysis based on official rules and our open calculator. It isn’t financial advice.
Sources: HMRC: Electric Vehicle Excise Duty (eVED) · Ofgem: price cap October–December 2026
Faisal is the founder and editor of EV vs Gas Car Cost. He builds the site’s ownership-cost calculators and reviews new cars with one question in mind: what will this car really cost to buy, finance, fuel and run? His reviews are based on manufacturer specifications, official fuel-economy and efficiency ratings, and public fuel and electricity price data, which he cites in every article.
