UK's Mileage-Based EV Tax: How Much Will Rural Drivers Pay? (2026)

Rural drivers in the UK are set to face the steepest bills under the country's new mileage-based electric vehicle tax, according to a recent analysis. The tax, which is due to take effect in 2028, is expected to raise £1.1 billion a year, partly offsetting the loss of fuel duty revenues as drivers switch to electric vehicles. However, the analysis reveals a stark disparity in how rural and urban drivers will be affected. Drivers in the south-west of England, for instance, would pay nearly four times as much as those in London, with an average annual cost of £110.25 compared to £33.09 in the capital. This disparity risks creating another obstacle to electric vehicle uptake, just as ministers are trying to accelerate sales. The tax could discourage EV take-up, especially among the mass market, where skepticism about electric vehicles remains high. People living in smaller, rural towns and villages near cities would pay the most on average, at £156.51 a year, while those in urban areas and cities would pay £76.02. The research, based on 2024 data, also highlights the growing popularity of electric cars, with sales rising by nearly a quarter in 2025 to a record 473,000, though still below the target of 28% in the national plan. Despite the concerns, the major savings and environmental benefits of going electric remain firmly in place, and EVs will continue to be the most practical and future-proof choice for UK drivers.

UK's Mileage-Based EV Tax: How Much Will Rural Drivers Pay? (2026)
Top Articles
Latest Posts
Recommended Articles
Article information

Author: Rev. Porsche Oberbrunner

Last Updated:

Views: 6026

Rating: 4.2 / 5 (53 voted)

Reviews: 92% of readers found this page helpful

Author information

Name: Rev. Porsche Oberbrunner

Birthday: 1994-06-25

Address: Suite 153 582 Lubowitz Walks, Port Alfredoborough, IN 72879-2838

Phone: +128413562823324

Job: IT Strategist

Hobby: Video gaming, Basketball, Web surfing, Book restoration, Jogging, Shooting, Fishing

Introduction: My name is Rev. Porsche Oberbrunner, I am a zany, graceful, talented, witty, determined, shiny, enchanting person who loves writing and wants to share my knowledge and understanding with you.