Pay-per-mile tax and used EVs: what eVED means if you’re buying a second-hand electric car

Car News10/28/2026

What Pay-Per-Mile Tax Means for Used EV Buyers | Rooster

If you buy a used electric car now, you will almost certainly still own it when the new pay-per-mile tax arrives. From 1 April 2028, electric cars will pay electric Vehicle Excise Duty (eVED) at 3p a mile and plug-in hybrids at 1.5p a mile, on top of standard car tax. For a typical driver that is a few hundred pounds a year: enough to factor in, but not enough to wipe out the savings of charging at home.

This guide shows what eVED adds to the cost of running a used EV, how it compares with petrol, and what it means for the car you buy. For the full rules, see our eVED explainer.

Last updated 27 October 2026. Figures come from HM Treasury’s eVED consultation response of July 2026. Details may change at the Autumn Budget on 28 October 2026.

Key takeaways

eVED starts on 1 April 2028 at 3p a mile for EVs and 1.5p a mile for plug-in hybrids, rising with inflation from 2029-30.
It applies to every UK-registered EV and plug-in hybrid car, whenever it was bought.
At 10,000 miles a year, an EV will pay about £300 in eVED, on top of £200 standard car tax.
The government says that is around half what a petrol driver pays in fuel duty.
Charged at home, an EV will still cost far less per mile than petrol after eVED.
Accurate mileage records matter more than ever, so check a used EV’s mileage history carefully.

How much will eVED add?

Annual mileage	eVED for an EV (3p)	eVED for a plug-in hybrid (1.5p)
5,000	£150	£75
8,000	£240	£120
10,000	£300	£150
15,000	£450	£225

These are the 2028-29 rates. They will rise with inflation each year from 2029-30. The government estimates that an EV driver covering 8,000 miles will pay around £240 a year, compared with around £480 in fuel duty for a petrol or diesel driver covering the same distance.

eVED is paid as well as standard car tax, which is £200 a year in 2026/27, and the expensive car supplement on pricier cars.

Is a used EV still cheaper than petrol?

For most drivers who charge at home, clearly yes. Adding 3p a mile to the cost of home charging still leaves an EV far cheaper per mile than a petrol car.

How you fuel the car	Cost per mile now	Cost per mile with eVED
EV, home overnight EV tariff (around 7p/kWh)	About 2p	About 5p
EV, home standard rate (26.32p/kWh)	About 7.5p	About 10.5p
EV, public rapid charging (79p/kWh)	About 24p	About 27p
Petrol car at 45mpg (about 174p a litre)	About 17p	About 17p (fuel duty already included)

The drivers who lose out are those who rely on rapid chargers. For them, an EV is already roughly as expensive per mile as petrol, and eVED widens the gap. If that is you, read can you own an electric car without a home charger?

What eVED means for the car you buy

EV or plug-in hybrid? Plug-in hybrids pay half the rate because their drivers also pay fuel duty on petrol. But the 1.5p applies to every mile, whether you drive on electric or petrol. A plug-in hybrid that you rarely charge gets the worst of both. Full hybrids don’t pay eVED at all. See used EV vs hybrid vs plug-in hybrid.

Efficiency matters a bit less. eVED is charged per mile, not per kWh, so it costs the same in an efficient small EV as in a large SUV. The efficient car will still be cheaper to charge.

Mileage history matters more. Once tax depends on miles driven, an accurate odometer is essential. The government plans new offences for tampering with odometers and a requirement for a working odometer. Check a used EV’s MOT mileage history for gaps or drops. See how to tell if a car has been clocked.

Values. It is not yet clear how eVED will affect used EV prices. Used EV prices have risen through 2026 as fuel costs have climbed. See used electric car depreciation explained.

Buying and selling once eVED starts

Under the plans, you will give your current mileage and estimate your mileage for the year ahead when you renew your car tax, and pay eVED upfront or spread over the year. The estimate is checked against MOT readings and any difference is settled later.

That creates a question when a car changes hands. The government says sellers will be able to settle any outstanding amount with a top-up payment before they sell, but a full automatic refund and reconciliation when a car changes keeper won’t be ready at launch. An update is due by the end of 2026. Until then:

Expect to declare the mileage when you buy or sell, as you do for the V5C
Keep records of the mileage at the date of sale
Ask the seller whether any eVED balance has been settled

Frequently asked questions

Do I pay eVED on a used EV I buy now?

Yes, from 1 April 2028. It applies to every UK-registered electric and plug-in hybrid car, whenever you bought it.

How much is eVED a year?

At 10,000 miles, about £300 for an EV and £150 for a plug-in hybrid at 2028-29 rates. It will rise with inflation from 2029-30.

Is eVED on top of road tax?

Yes. EVs will pay standard car tax as well as eVED.

Do hybrids pay pay-per-mile tax?

Plug-in hybrids pay 1.5p a mile. Full and mild hybrids, which you can’t plug in, don’t pay eVED.

Will eVED make EVs more expensive than petrol?

Not for most drivers who charge at home. Even with eVED, an EV charged on an overnight tariff costs about 5p a mile, against around 17p for petrol.

Sources and further reading

About this guide: Rooster is a UK car insurance provider. This guide is general information for UK drivers, not tax advice. eVED is due to start in April 2028 and some details are still being finalised, so check GOV.UK for the latest rules.

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