Pay Per Mile Tax Calculator
Calculate how much the new eVED mileage tax will cost you from April 2028. Enter your annual mileage and electricity costs to see your estimated total running costs.
Calculate Your eVED Cost
See exactly how much you'll pay under the new pay-per-mile system
Budget 2025 Update: From 1 April 2026, the Expensive Car Supplement threshold for zero-emission vehicles increases from £40,000 to £50,000. This applies retrospectively to vehicles registered from 1 April 2025. PHEVs and other vehicles remain at the £40,000 threshold.
What You Need to Know
Key facts about the pay-per-mile tax system
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All Costs in One Place
View mileage, maintenance, energy usage, and tax costs together.
Example: Average EV Driver
That's around £82 per month
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Frequently Asked Questions
Quick answers about the pay-per-mile tax
About Pay-Per-Mile Road Pricing in the UK
Why is the UK considering pay-per-mile taxation?
The UK government faces a significant revenue challenge as increasing EV adoption reduces fuel duty receipts. Fuel duty currently raises approximately £25 billion per year for the Treasury, making it one of the largest single sources of tax revenue. As petrol and diesel vehicles are replaced by EVs that pay no fuel duty, this revenue will decline substantially. Pay-per-mile taxation is the leading proposal for replacing this revenue in a way that applies equally to all vehicle types regardless of fuel source, while also providing the possibility of charging different rates by location, time of day, or road type — enabling more nuanced management of road congestion.
How would pay-per-mile tax be collected?
The government has not yet committed to a specific collection mechanism for pay-per-mile taxation, and this remains one of the most complex aspects of implementation. Proposed options include GPS-based tracking devices fitted to vehicles, odometer reporting at annual MOT or service, mobile phone GPS data used with consent, or a hybrid approach. Each mechanism has trade-offs between accuracy, privacy, cost, and enforcement difficulty. The privacy implications of continuous GPS tracking are politically and legally sensitive under UK GDPR, making an odometer-based reporting system a more privacy-respecting alternative, though one that is easier to circumvent.
Who would pay more and who would pay less under pay-per-mile?
Under a simple flat rate per-mile system, the winners and losers depend on current driving patterns and vehicle type. High-mileage drivers would pay more than under the current fuel duty system if they drive more than average miles at the proposed rate. Low-mileage drivers, or those who make short local trips, would pay less. Rural drivers who depend on their car for long distances to access services tend to drive more miles and would face disproportionate costs compared to urban dwellers with public transport alternatives. This distributional concern is one of the main political challenges for pay-per-mile implementation and has led to proposals for rural exemptions or discounted rates.
What is the eVED and how does it differ from VED?
VED (Vehicle Excise Duty, commonly called “road tax”) is a fixed annual charge based on vehicle type, emissions, and value. From April 2025, pure battery electric vehicles began paying VED for the first time, ending their previous exemption. eVED (electric Vehicle Excise Duty) specifically refers to the VED applicable to EVs under the new charging regime. The proposed pay-per-mile system would be a separate charge on top of VED rather than a replacement for it — at least in the initial proposals. This means EV owners from April 2028 could potentially face VED, the Expensive Car Supplement (if applicable), and a per-mile charge simultaneously.
How can I reduce my exposure to pay-per-mile costs?
The most direct way to reduce pay-per-mile tax liability is to drive fewer miles — through working from home where possible, combining trips efficiently, using public transport for some journeys, or cycling for short trips. For fleet operators, optimising routing and reducing unnecessary vehicle movements will directly reduce tax liability. Choosing a home or workplace location that reduces commuting distance is a longer-term factor. Pay-per-mile taxation, if implemented, would fundamentally change the economics of high-mileage driving and may accelerate the growth of car-sharing schemes, public transport investment, and remote working patterns already established since 2020.