Electric Car Tax Calculator
Calculate the Benefit-in-Kind (BIK) tax on your electric company car. See how much you can save compared to petrol or diesel vehicles. Updated for 2026/27.
Only 5% BIK Rate
Lowest company car tax rate available
Save Up to £5,000/year
Compared to petrol/diesel equivalents
No Fuel Benefit Tax
Free workplace charging is tax-free
Including options and delivery charges
| Tax Year | EV BIK Rate | Tax on £40k EV (20%) | Tax on £40k EV (40%) |
|---|---|---|---|
| 2025/26 | 5% | £400 | £800 |
| 2026/27 (Current) | 5% | £400 | £800 |
| 2027/28 | 6% | £480 | £960 |
| 2028/29 | 7% | £560 | £1,120 |
Compare: A petrol car with 120g/km CO2 would have a BIK rate of 29%, costing a 40% taxpayer £4,640/year on a £40,000 car.
Frequently Asked Questions
What is the BIK rate for electric cars in 2026/27?
Electric vehicles (EVs) have a Benefit-in-Kind (BIK) rate of 5% for 2026/27. This is significantly lower than petrol or diesel cars which can be taxed at up to 37%. The rate will increase to 6% in 2027/28 and 7% in 2028/29.
How much tax will I pay on an electric company car?
For a £45,000 electric car with a 5% BIK rate, a higher rate (40%) taxpayer would pay around £900 per year in tax. The same car as a petrol vehicle with 120g/km CO2 (29% BIK) would cost £5,220 per year - a saving of £4,320.
Are electric company cars worth it?
Yes, electric company cars are very tax-efficient. With BIK rates of just 5% compared to up to 37% for high-emission vehicles, the tax savings can be substantial. Combined with lower running costs (no fuel duty, cheaper energy, no road tax), EVs are often the most cost-effective company car option.
Do I pay tax on charging an electric company car at work?
No, electricity provided by your employer to charge your electric company car at work is not a taxable benefit. This includes charging at workplace charging points.
What about home charging?
If your employer reimburses you for home charging, this is more complex. Some schemes allow tax-free reimbursement using HMRC's Advisory Electricity Rate (AER) of 9p per mile for EVs. Check with your employer's scheme rules.
Will EV company car tax rates increase?
Yes, EV BIK rates will gradually increase: 5% in 2025/26 and 2026/27, 6% in 2027/28, and 7% in 2028/29. Even at 7%, EVs remain significantly cheaper than petrol/diesel alternatives.