Electric car tax guide 2025: Everything you need to know to buy an EV this APRIL

CAR tax and insurance are boring but essential, and this is as true for electric vehicles as it is for petrol and diesel-powered cars.

When buying a new or used electric vehicle, you’ll need to do your research, checking tax rates and comparing insurance quotes.

In the past, car tax was free for electric vehicles, but things are changing.

In this guide, we’re going to provide details on tax rates for electric vehicles, clarifying the changes that took place on 1 April 2025. 

We’ll also look at insurance costs for electric vehicles.

Electric vehicle tax

Electric vehicles used to be exempt from paying road tax (or Vehicle Excise Duty, if we’re using the technical term).

We provide a breakdown of the latest vehicle tax rules, costs and implications for electric vehicles. 

What is electric vehicle (EV) road tax?

Electric vehicle road tax is a payment that every driver needs to pay each year to legally drive on the roads.

You can pay the tax as a one-off payment or split it into 12 monthly payments.

If you get caught driving without tax, you could be fined up to £1000.

Buying a used car? Find cars for under £150 on Sun Motors here.

Do electric car owners pay road tax​?

Yes. Electric vehicle drivers (including those who drive all-electric vehicles, plug-in hybrid electric vehicles and hybrid electric vehicles) have needed to pay road tax from 1 April. 

You can find details of all-electric vehicle tax rates below.

DVLA electric car tax changes: what were the most recent changes to car tax?

Electric car owners have to pay tax as of the start of this month; the exact amount you pay depends on the age of the car you drive. 

The rules on electric vehicle tax as of 1 April 2025

To make it easy, we’ve summarised the changes here:

• Electric, zero or low-emission cars registered on or after 1 April 2025:  You will need to pay the lowest first-year rate of vehicle tax set at £10 from 1 April 2025. From the second tax payment onwards, you will pay the standard rate. This will be £195.
• Electric, zero or low-emission cars registered between 1 April 2017 and 31 March 2025: You will pay the standard rate. This will be £195.
• Electric, zero or low-emission cars registered between 1 March 2001 and 31 March 2017: These vehicles will move to the first band that has a VED value. This will be £20.

Will all electric cars pay road tax in 2025?

The rules now mean that anyone with an electric car will pay at least some road tax.

Model: Renault Zoe

Road tax for electric cars can be as low as £20 (for cars produced between 2001-2017) to a standard rate of £195 for newly registered cars.

Electric vehicle insurance

Insurance is an essential expense for every car. Whether you’re buying a new or used electric vehicle, spending some time comparing insurance quotes can help you calculate an accurate total cost of ownership.

Are electric cars cheaper to insure?

Electric vehicles can be more expensive to insure, says the RAC. That’s because purchase costs are higher and repairs can be more complex and costly.

Electric vehicle batteries are the most expensive part of any car, with replacements costing £5000 or more. These are all factors in electric vehicle insurance. 

However, the growing number of electric vehicles on the road will likely see insurance costs stabilise in the near future.

Industry average figures don’t necessarily reflect individual risk. Insurers will calculate your premier based on your age, driving experience, any penalties and points and address.

They’ll also look at the age, cost and performance of your car, as well as its insurance group. You can check your car’s insurance group on this helpful Monseysupermarket electric car insurance index.

The easiest way to check electric vehicle insurance costs is to use an insurance comparison site. Always be 100% honest about who’s driving the car, where and when while getting your car insurance comparison quote.

Buying a used car? Check out Sun Motors and find your next vehicle today. Whether you’re looking for automatic, manual or electric, use Sun Motors to decide on your next model.