Electric Car Running Costs: The Full UK Breakdown for 2026
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What Does It Cost to Run an Electric Car in the UK?
The short answer: less than you might think – and significantly less than a petrol car, especially when you factor in the tax advantages of an electric car salary sacrifice scheme.
The longer answer requires breaking down every component of running costs individually, because the total cost of ownership (TCO) picture is more nuanced than a simple fuel comparison. This guide covers every category – charging, insurance, servicing, tyres, road tax, Benefit-in-Kind tax, and depreciation – and shows both what you'd pay as a personal buyer and what you'd pay through The Electric Car Scheme's salary sacrifice scheme.
Quick Reference: Annual EV Running Cost Summary (2026)
| Cost Category | Personal EV Owner | EV via Salary Sacrifice |
|---|---|---|
| Charging (home, standard tariff) | £720–£840/yr | Included / subsidised via The Charge Scheme |
| Charging (home, EV tariff) | £210–£245/yr | Save additional 20–50% via The Charge Scheme |
| Insurance | £1,200–£1,400/yr | Included in salary sacrifice package |
| Servicing & maintenance | £165/yr | Included in salary sacrifice package |
| Tyres | £200–£400/yr | Included in salary sacrifice package |
| Road tax (VED) | £190/yr (from Apr 2025) | £190/yr |
| Benefit-in-Kind tax | N/A (personal) | ~£55/month (40% taxpayer, Nissan Ariya example) |
| Estimated annual total | £2,500–£3,000+ | Substantially lower – see full comparison below |
How We Calculated These Figures
All figures are based on a typical UK driver covering 10,000 miles per year, using a mid-range electric vehicle with a 60–70kWh battery. Charging costs use nationally available tariff data. Insurance figures reflect current UK market averages for EVs. Salary sacrifice figures are based on a 40% taxpayer using The Electric Car Scheme.
Charging Costs: Home, Public & Workplace
Charging is the single largest variable in EV running costs – and where the biggest savings are available. Unlike petrol, where prices are largely fixed at the pump, electricity costs vary enormously depending on how and where you charge.
Home Charging
For most EV drivers, home charging accounts for around 80% of all sessions. It is the most convenient and the cheapest option by a significant margin.
A typical electric car with a 60kWh battery costs:
| Tariff Type | Cost per kWh | Full Charge Cost | Estimated Annual Cost (10,000 mi) |
|---|---|---|---|
| Standard home tariff | ~20p | ~£12 | £720–£840 |
| EV-specific off-peak tariff | ~7–8p | ~£4.50 | £210–£245 |
| Solar-assisted charging | ~0–5p | Near zero | Minimal |
Switching to an EV-friendly energy tariff is one of the most impactful changes an EV driver can make. Providers including British Gas, EDF, EON Next, and Scottish Power offer dedicated EV tariffs with significantly reduced overnight rates. Charging exclusively during off-peak hours – typically midnight to 5am – can reduce your annual charging bill by 60–70% compared to standard tariffs.
Smart chargers can be programmed to charge automatically during these windows, so you don't need to think about it. For a full guide to setting up home charging efficiently, read our beginner's guide to EV charging and our breakdown of fast charging at home.
If you're deciding which home charger to install, our guide to types of home EV chargers covers everything from tethered versus untethered units to smart tariff integration – and what installation typically costs.
Public Charging Costs
Public charging is more expensive than home charging, particularly for rapid and ultra-rapid sessions. Here's a general breakdown by charger speed:
| Charger Type | Typical Cost per kWh | Full Charge Cost (60kWh) |
|---|---|---|
| Slow/fast (7–22kW) | 25–45p | £15–£27 |
| Rapid (50kW) | 45–65p | £27–£39 |
| Ultra-rapid (150kW+) | 55–85p | £33–£51 |
Most drivers use public charging selectively – for longer journeys or occasions when home charging hasn't been possible. Subscription plans from networks like BP Pulse and IONITY can reduce per-kWh costs substantially for frequent public charger users. For practical tips on reducing public charging spend, see our EV charging cost-saving tips.
Salary Sacrifice Charging Savings: The Charge Scheme
One of the most significant recent innovations in the electric car scheme UK market is The Charge Scheme – The Electric Car Scheme's salary sacrifice add-on for EV charging costs. Through salary sacrifice charging, employees can save 20–50% on all EV charging, whether at home, at work, or on the public network. Drivers use a single app and card to record charging, simplifying what has historically been a fragmented process.
For a typical driver, The Charge Scheme saves between £500 and £1,000 per year on charging alone – directly addressing one of the most commonly cited barriers to going electric.
Insurance Costs
How Much Is EV Insurance in 2026?
Electric car insurance currently costs more than the equivalent petrol car policy, typically by 15–25%. This reflects higher repair costs, specialist battery considerations, and the fact that EV models are disproportionately higher-value vehicles.
| Vehicle Type | Estimated Annual Insurance Cost |
|---|---|
| Mid-range petrol car | £900–£1,100 |
| Mid-range electric car (personal) | £1,200–£1,400 |
| EV via salary sacrifice (The Electric Car Scheme) | Included in monthly package |
Several factors influence EV insurance pricing: the vehicle's value, repair complexity, your driving history, and where the car is kept overnight. For a detailed breakdown, see our guide to whether electric cars are more expensive to insure.
How Salary Sacrifice Eliminates Insurance Costs
One of the most underappreciated advantages of a salary sacrifice electric car scheme is that insurance is typically bundled into the all-inclusive monthly package. This removes one of the largest variable running costs entirely from your personal budget – and means you're insured through a fleet policy, which can carry competitive terms given the volumes involved.
For a 40% taxpayer, this bundling is particularly powerful. The net monthly cost via salary sacrifice can be less than half the cost of a personal lease with separately purchased insurance.
Servicing & Maintenance
Annual Servicing Costs
Electric cars have fewer moving parts than petrol vehicles, which translates directly into lower servicing costs. There's no oil to change, no exhaust system, no timing belt, and no clutch. The core service items are tyres, brake fluid, cabin air filters, and software checks.
| Vehicle Type | Average Annual Servicing Cost |
|---|---|
| Petrol car | ~£205 |
| Electric car | ~£165 |
That's a roughly 20% saving on servicing alone – and the gap widens when you account for the reduced likelihood of unplanned repair costs. EV batteries are engineered to last 10–20 years or 150,000+ miles before significant degradation, with most manufacturers providing 8-year/100,000-mile warranties. For more on long-term maintenance expectations, read our guide to electric car maintenance and servicing.
Tyre Costs for EVs
EVs are heavier than petrol equivalents due to battery weight, which accelerates tyre wear. Budget for replacing tyres more frequently – typically every 15,000–25,000 miles depending on the vehicle and driving style. Annual tyre costs for an EV range from approximately £200–£400.
Many EV manufacturers are now developing EV-specific tyres with lower rolling resistance and increased load ratings to address this. Some premium models include tyres optimised for their weight profile from the factory.
What's Included in a Salary Sacrifice Maintenance Package
Through The Electric Car Scheme, servicing, maintenance, and breakdown cover are all included as standard in the monthly salary sacrifice package. This means there are no unexpected bills for routine or unplanned maintenance during the lease term – a significant advantage over personal ownership, where repair costs can arrive without warning.
Road Tax & Benefit-in-Kind
EV Road Tax from April 2025
From 1 April 2025, electric vehicles are no longer exempt from Vehicle Excise Duty (VED). The rates are:
First year: £10 (the lowest first-year rate)
From year two: £190 per year (standard rate)
While this ends the previous road tax exemption, EVs remain substantially cheaper than high-emission petrol vehicles, which can attract first-year VED rates of several hundred pounds. For full context on the changes, see our article on UK road tax changes in 2025.
Benefit-in-Kind: Why This Is Central to the EV Salary Sacrifice Case
Benefit-in-Kind (BiK) tax is charged when an employee uses a company-provided vehicle for personal use. The rate is calculated on the vehicle's P11D value multiplied by the BiK percentage and your personal tax bracket.
For electric cars, the BiK rate is currently just 3% for 2025/26 – the lowest of any vehicle category, and a fraction of the maximum 37% that applies to high-emission petrol cars. Increases are modest and gradual: 4% in 2026/27, 5% in 2027/28, reaching 9% by 2029/30. For a full explanation, see ourBenefit-in-Kind guide.
| Tax Year | EV BiK Rate | High-Emission Petrol (max) |
|---|---|---|
| 2025/26 | 3% | 37% |
| 2026/27 | 4% | 37% |
| 2027/28 | 5% | 37% |
| 2028/29 | 7% | 37% |
| 2029/30 | 9% | 37% |
To put this in concrete terms: for a Nissan Ariya with a P11D value in the standard range, a 40% taxpayer would pay approximately £55 per month in BiK tax across a three-year lease. The equivalent figure for a petrol car of comparable value would be dramatically higher.
Depreciation & Residual Value
Depreciation is one of the largest hidden costs of personal car ownership, yet it rarely features in headline comparisons. The average new car loses around 60% of its value in the first three years.
For EV buyers purchasing outright, depreciation is a real consideration. However, the used EV market is strengthening as awareness grows and the 2035 ICE ban approaches, which should support residual values over time. Used electric car sales in the UK hit a record high in summer 2024, with year-on-year growth of 57% – a strong indicator of demand. For guidance on used EV pricing, see our used cheap EV guide.
How Salary Sacrifice Eliminates Depreciation Risk
When you lease an electric car through a salary sacrifice electric car scheme, depreciation is entirely the leasing company's problem – not yours. You hand the car back at the end of the term, with no exposure to residual value fluctuations. This is a structural advantage that is rarely quantified but represents thousands of pounds in avoided risk.
Total Cost of Ownership: EV vs Petrol (3-Year & 5-Year Comparison)
The following tables illustrate total cost of ownership (TCO) across three ownership models: personal petrol purchase, personal EV purchase, and EV via electric car salary sacrifice scheme. Figures assume 10,000 miles per year and a 40% taxpayer.
| Cost Component | Petrol (Personal) | EV (Personal Purchase) | EV (Salary Sacrifice) |
|---|---|---|---|
| Vehicle/lease cost | £9,000 (PCP payments) | £12,000 (PCP payments) | £8,400 (net after tax savings) |
| Fuel / Charging | £3,690 | £2,100 (standard tariff) | £1,260 (EV tariff, Charge Scheme) |
| Insurance | £3,000 | £3,900 | Included |
| Servicing & maintenance | £615 | £495 | Included |
| Road tax | £570 | £390 | £390.00 |
| BiK tax | N/A | N/A | £1,980 |
| Tyres | £900 | £1,050 | Included |
| Depreciation risk | ~£5,000–£8,000 | ~£6,000–£9,000 | £0 |
| Estimated 3-yr TCO (excl. depreciation) | ~£17,775 | ~£19,935 | ~£12,030 |
5-Year Total Cost of Ownership
| Cost Component | Petrol (Personal) | EV (Personal Purchase) | EV (Salary Sacrifice) |
|---|---|---|---|
| Vehicle/lease cost | £15,000 | £20,000 | £14,000 (net) |
| Fuel / Charging | £6,150 | £3,500 | £2,100.00 |
| Insurance | £5,000 | £6,500 | Included |
| Servicing & maintenance | £1,025 | £825 | Included |
| Road tax | £950 | £790 | £790.00 |
| BiK tax | N/A | N/A | £3,300 |
| Tyres | £1,500 | £1,750 | Included |
| Estimated 5-yr TCO (excl. depreciation) | ~£29,625 | ~£33,365 | ~£20,190 |
These figures illustrate a consistent pattern: personal petrol ownership is cheaper upfront and month-to-month than personal EV ownership, but the salary sacrifice electric car route significantly undercuts both. The gap widens over five years as the compounding advantages of lower tax, zero depreciation exposure, and bundled costs accumulate.
Salary Sacrifice vs Personal Ownership: The Full Comparison
For a 40% taxpayer leasing a mid-range EV through The Electric Car Scheme, the monthly cost comparison versus a personal car arrangement looks like this:
| Monthly Cost | Personal EV Lease | EV via The Electric Car Scheme |
|---|---|---|
| Vehicle lease | £450 | £584 (gross salary sacrifice) |
| Income tax saving | – | -£234 |
| National Insurance saving | – | -£12 |
| BiK tax | – | £55 |
| Insurance | £110 | Included |
| Servicing | £15 | Included |
| Net monthly cost | ~£575 | ~£393 |
The salary sacrifice route delivers a saving of approximately £182 per month in this example – or over £2,100 per year – on a like-for-like basis. This is because salary sacrifice payments are deducted from gross salary before income tax and National Insurance are applied, reducing your taxable income in the process.
For a lower-rate (20%) taxpayer, the savings are smaller but still meaningful – typically in the range of 20–30% versus a personal lease.
Use our salary sacrifice calculator to model your specific scenario, or explore our guide to how salary sacrifice works for a full explanation of the mechanics.
Frequently Asked Questions
How much does it cost to run an electric car per year in the UK? For a personal EV owner driving 10,000 miles per year and charging primarily at home on a standard tariff, total annual running costs (charging, insurance, servicing, tyres, and road tax) typically fall in the range of £2,500–£3,000. Switching to an EV-specific overnight tariff reduces charging costs significantly. Through a salary sacrifice electric car scheme, the all-in monthly cost is substantially lower, as insurance, servicing, and maintenance are bundled into the package.
Is it cheaper to run an electric car than a petrol car? Yes, in most cases – particularly over a full three-to-five-year period. Fuel costs are 3–5 times lower per mile for EVs, servicing is around 20% cheaper, and road tax is lower. The main area where EVs cost more is insurance, which tends to be 15–25% higher. When accessed through an electric car salary sacrifice scheme, the total cost advantage of an EV over a petrol car is even greater. For a full comparison, see our electric cars vs petrol cars guide.
How much does it cost to insure an electric car in the UK? Electric car insurance costs between £1,200 and £1,400 per year on average for a mid-range vehicle – roughly 15–25% more than the petrol equivalent. Through The Electric Car Scheme's salary sacrifice package, insurance is included as standard, eliminating this cost as a separate line item. See our full guide to EV insurance costs for more detail.
How much does it cost to service an electric car? Annual servicing for an electric car costs approximately £165 on average, compared to around £205 for a petrol car – a saving of roughly 20%. Because EVs have fewer moving parts (no oil changes, no exhaust, no timing belt), both routine and unplanned repair costs tend to be lower. Through a salary sacrifice electric car scheme, servicing and maintenance are typically included in the monthly package.
What is the Benefit-in-Kind tax rate for electric cars in 2025/26? The BiK rate for fully electric cars is 3% for the 2025/26 tax year. This compares to a maximum of 37% for high-emission petrol vehicles. The rate will increase gradually, reaching 9% by 2029/30 – but remaining far below the petrol equivalent throughout. Learn more in our BiK and salary sacrifice guide.
Does road tax apply to electric cars in 2026? Yes. From 1 April 2025, electric vehicles became subject to VED for the first time. From the second year of registration, EV drivers pay the standard rate of £190 per year. This is still significantly lower than the VED charged on high-emission petrol cars.
How does salary sacrifice reduce EV running costs? An electric car salary sacrifice scheme works by deducting the cost of your EV lease from your gross salary before tax. This reduces your taxable income, saving you income tax and National Insurance. Combined with the low 3% BiK rate and the bundled insurance, servicing, and maintenance in the package, the net monthly cost is typically 20–50% lower than a personal lease or purchase. There is no cost to employers to run the scheme.
What is the cheapest way to charge an electric car? Home charging on an EV-specific overnight tariff is the cheapest option, with some tariffs offering rates as low as 7–8p per kWh during off-peak hours. This compares to 55–85p per kWh for ultra-rapid public charging. Through The Charge Scheme, employees can salary sacrifice their charging costs and save an additional 20–50% on all charging – at home, at work, or in public.
Calculate Your Savings
The figures above illustrate why electric car salary sacrifice consistently delivers lower total running costs than personal petrol or EV ownership for most UK employees. The combination of pre-tax salary deductions, low BiK rates, bundled insurance and servicing, and charging savings through The Charge Scheme creates a compelling financial case.
Ready to see your numbers? Use our salary sacrifice savings calculator to model the exact monthly and annual savings for your salary band, tax bracket, and chosen vehicle.
If you're an employer exploring the scheme for your team, book a demo to see how The Electric Car Scheme can be set up with no cost to your business, complete employer protection from day one, and access to the UK's best-rated EV salary sacrifice service.
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Last updated: 24/03/2026
Our lease pricing is based on data collected from The Electric Car Scheme quote tool. All final pricing is inclusive of VAT. All prices above are based on the following lease terms; 10,000 miles pa, 36 months, and are inclusive of Maintenance and Breakdown Cover. The Electric Car Scheme’s terms and conditions apply. All deals are subject to credit approval and availability. All deals are subject to excess mileage and damage charges. Prices are calculated based on the following tax saving assumptions; England & Wales, 40% tax rate. The above prices were calculated using a flat payment profile. The Electric Car Scheme Limited provides services for the administration of your salary sacrifice employee benefits. The Electric Car Scheme Holdings Limited is a member of the BVRLA (10608), is authorised and regulated by the FCA under FRN 968270, is an Appointed Representative of Marshall Management Services Ltd under FRN 667174, and is a credit broker and not a lender or insurance provider.
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