Tesla Road Tax Explained: How to Tax your Tesla in the UK

Complete guide to road tax for Electric cars like Tesla in the UK.

I recently got a letter from DVLA for Vehicle Tax Reminder. First time since owning a vehicle in the UK, the amount to pay towards road tax is £0.

But this doesn’t mean you don’t need to tax your Electric Vehicle. In this post, I will go through everything you need to know about taxing your zero emission vehicle in the UK.

As I go through the process of getting my Tesla Model 3 taxed in the UK, I have documented it here.

Even though Teslas are now exempt from paying any vehicle road tax, you still need to tax your EV each year even if you don’t have to pay.

I have explained how to tax your Tesla online (with pictures) in this post – read on!

Okay let’s get started then.

Tesla Road Tax: who this guide is for?

This guide is for:

  • Existing owners: If you are due to tax your Tesla in the UK, this guide will help you with the step-by-step process.
  • Future owners: If you are planning to own a Tesla in the near future, this guide covers everything you need to know about taxing your Tesla.

If you’re planning to buy a Tesla, don’t forget using a Tesla Referral code that gives you some free supercharger miles to try on the Tesla charging network.

How is Road Tax calculated in the UK?

For all vehicles registered since March 2001, Road Tax (officially known as Vehicle Excise Duty – VED) is calculated based on Carbon Dioxide (CO2) emissions of your vehicle, the year it was registered in and the price of the vehicle itself.

For vehicles registered before March 2001, the VED tax is calculated based on the engine size.

Let’s look at how it stacks up specifically for Electrics based on the vehicle you own.

BEVs (Battery Electric Vehicles)

…also termed zero-emission vehicles.

In the UK, starting April 2020, you don’t pay any road tax on a pure electric vehicle i.e. cars that rely completely on battery power.

Tesla vehicles have Zero Carbon Dioxide (CO2) emissions hence, completely tax-free for both the first year and subsequent years.

PHEVs (Plug-in Hybrid Electric Vehicles)

Depending on how much your PHEV emission is, you are likely to pay between £0-£100 for your first year and £140 every year after that, depending on the levels of CO2 emissions.

Luxury Car Tax

After the first year of ownership, Electric Vehicle owners used to pay a premium car tax of £325 from year two onwards for five years on cars with a list price of £40,000 or more.

For Zero-emission vehicles to be exempt from any road tax in the UK, the list price of car had to be under £40,000.

Even though Tesla vehicles were exempt from the Road Tax due to 0g/km of CO2 emissions, as a Tesla owner, you still had to pay this additional tax.

As part of changes in the 2020 budget, pure battery-operated EVs are now exempt from this additional tax.

Chancellor Rishi Sunak announced the removal of “premium car tax” making the Teslas purely road tax free vehicles from April 2020 onwards. This exemption is in effect for five years up till 2025.

That means:

If you have your first tax year tax due in 2020 or 2021, that’s a massive saving of £1625 as you can benefit for all “premium tax” years until 2025.

If you have a Plugin Hybrid EV, you still need to pay this additional premium tax Year 2 onwards.

How much does Road Tax for Electric Vehicles cost?

Based on the information about BEVs, PHEVs and luxury tax mentioned above, here’s how it looks:

CO2 EmissionsFirst year taxSecond year onwardsAdded Premium Tax
0 g/km£0£0£0
1-50 g/km£0£140£325
51-75 g/km£15£140£325
76-90 g/km£100£140£325
91-100 g/km£125£140£325
101-110 g/km£145£140£325

How much is Road Tax for Tesla in the UK

As you can see in the table above, the Road Tax (VED) for a pure Battery Electric Vehicle like Tesla in the UK – after the new changes introduced in 2020 – is £0.

Zero road tax for a zero-emissions vehicle! (click to tweet)

How to tax your Tesla in the UK

You don’t need to pay anything towards road tax if you own a Tesla but you are still required to tax it every year.

Here’s the step-by-step process of how to tax your Electric Vehicle in the UK.

Step #1. Go to this link and click “Start now >” button.

Tax your Tesla Electric Vehicle Online
Tax your EV online

Step #2. Select Yes if you have received the V11 reminder letter that should carry a reference number. Click Continue.

Step #3. Enter the 16 digit reference number from the V11 reminder letter and click Continue.

Step #4. On the next screen, review your vehicle details. If any of the details on this step are incorrect, you can click on the “Incorrect details?” link to contact DVLA. If everything looks alright, click Continue.

Step #5. The next step should show you the details for the Road tax – start date and the amount to be paid, which for a pure electric vehicle like Tesla is £0.00. At this step, you can enter your email address to get a confirmation of the road tax submission from DVLA.

Step #6. Congratulations, you’ve just taxed your Tesla in the UK. At this stage, you can print this page or if you entered your email address in the last step, you should have got an email with the confirmation.

Wrapping up!

There you have it – all you need to know about Road Tax for Electric Vehicles along with an example and a quick guide on how to tax your Tesla in the UK.

If you found this guide useful, don’t forget signing up to TeslaStir newsletter so you don’t miss on any new updates from TeslaStir in the future. You can also follow me on Instagram for my adventures on my Tesla Model 3.

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