Electric company car tax calculator
What an electric company car or salary sacrifice car costs you in tax, year by year to 2029/30. Enter the list price and your salary.
Calculator
Company car tax, 2026/27
£360 a year Derived £45,000 taxable list price × 4% = £1,800 benefit; income tax on it at your marginal rate (England, Wales and Northern Ireland 2026/27 bands) = £360.00. Sources
A month
£30.00
Benefit in kind (4%)
£1,800 Official The appropriate percentage for a car with zero CO2 emissions, from the Finance Act tables. Source What the document saysCar with CO 2 emissions figure of 0 4%
Year by year
| Tax year | Rate | Benefit | Tax a year | A month |
|---|---|---|---|---|
| 2026/27 | 4% Official Finance Act table for zero-emission cars. Source
What the document says Car with CO 2 emissions figure of 0 4% | £1,800 | £360 Derived £45,000 taxable list price × 4% = £1,800 benefit; income tax on it at your marginal rate (England, Wales and Northern Ireland 2026/27 bands) = £360.00. Source
| £30.00 |
| 2027/28 | 5% Official Finance Act table for zero-emission cars. Source
What the document says Car with CO 2 emissions figure of 0 5% | £2,250 | £450 Derived £45,000 taxable list price × 5% = £2,250 benefit; income tax on it at your marginal rate (England, Wales and Northern Ireland 2026/27 bands) = £450.00. Source
| £37.50 |
| 2028/29 | 7% Official Finance Act table for zero-emission cars. Source
What the document says Car with CO 2 emissions figure of 0 7% | £3,150 | £630 Derived £45,000 taxable list price × 7% = £3,150 benefit; income tax on it at your marginal rate (England, Wales and Northern Ireland 2026/27 bands) = £630.00. Source
| £52.50 |
| 2029/30 | 9% Official Finance Act table for zero-emission cars. Source
What the document says Car with CO 2 emissions figure of 0 9% | £4,050 | £810 Derived £45,000 taxable list price × 9% = £4,050 benefit; income tax on it at your marginal rate (England, Wales and Northern Ireland 2026/27 bands) = £810.00. Source
| £67.50 |
Income tax uses the 2026/27 bands; the personal allowance and basic rate limit are frozen in law to 2030/31
Official
Finance Act 2026, section 10.
Source
- legislation.gov.uk (checked 13 October 2026)
What the document says
2027-28, 2028-29, 2029-30 and 2030-31
Salary sacrifice: for cars with CO2 of 75 g/km or less (every electric car), the taxable benefit is the normal company car benefit above, not the salary you give up.
Official
GOV.UK guidance on salary sacrifice and optional remuneration arrangements.
Source
- GOV.UK (checked 13 October 2026)
What the document says
For cars with CO2 emissions of no more than 75g/km, you should always use the earnings charge under the normal benefit in kind rules.
How company car tax on an electric car works
You're taxed on a "benefit in kind": a percentage of the car's list price, added to your income. For a car with zero CO2 emissions the percentage is set in law up to 2029/30: 4% in 2026/27, 5% in 2027/28, 7% in 2028/29, 9% in 2029/30. You pay income tax on that amount at your own rate. Your employer pays Class 1A National Insurance on it too.
Every rate comes from legislation.gov.uk or GOV.UK; select a mark to see the page and the exact wording. Road tax and the pay-per-mile plan.
Company car tax: questions
What is the BIK rate for electric cars in 2026/27?
4% of the list price. It rises to 5% in 2027/28, 7% in 2028/29 and 9% from 2029/30, set in law.
How much company car tax will I pay on an electric car?
List price × the BIK rate × your income tax rate. A £45,000 car in 2026/27 is a £1,800 benefit: £360 a year for a basic-rate taxpayer, £720 at the higher rate.
Does salary sacrifice work for electric cars?
Yes. For cars with CO2 of 75 g/km or less, which includes every electric car, you're taxed on the normal company car benefit, not on the salary you give up. That's what makes electric car salary sacrifice schemes good value.
What list price is used for company car tax?
The car's list price, including VAT, delivery and standard accessories, plus optional extras, minus any capital contribution you make (up to £5,000). It's not the discounted price your employer paid.