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)
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