What Electric Car Can I Afford? Salary-Based EV Guide 2026
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Choosing an electric car should feel exciting, not overwhelming. But when prices, tax rules, and charging options all come into play, it’s natural to ask: What electric car can I actually afford on my salary?
Thanks to salary sacrifice, the answer is usually far better than you expect. By paying for an electric car before tax, you can save 20–50% compared with a personal lease, while benefiting from ultra-low company car tax.
This guide breaks everything down clearly, using real salary-based examples, so you can see what you can get for your money!
How Does Your Salary Affect Electric Car Affordability Through Salary Sacrifice?
Salary sacrifice reduces your taxable pay, meaning you save Income Tax and National Insurance on the portion you give up. In return, you receive a fully insured electric car, with servicing, maintenance, and breakdown cover typically included. The higher your tax band, the greater the saving, which is why higher earners often see the biggest percentage reductions.
| Band | Taxable income | Tax Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic Rate | £12,571 to £50,270 | 20% |
| Higher Rate | £50,271 to £125,140 | 40% |
| Additional Rate | Over £125,140 | 45% |
National Insurance for most employees in the 2025/26 tax year is charged at 8% on earnings between £12,570 and £50,270, and 2% on earnings above £50,270. These savings, combined with Income Tax relief and low electric car Benefit-in-Kind, are what make salary sacrifice so effective.
What Is Benefit-In-Kind (BiK) And Why Does It Matter?
BiK is known as company car tax. For electric cars, it is:
3% during the 2025/26 tax year
Increasing to 4% from April 2026
Even after the increase, EV BiK remains dramatically lower than petrol or diesel, keeping salary sacrifice one of the most tax-efficient benefits available.
What Electric Cars Can I Afford On A £30,000-40,000 Salary?
At this level, you’re a basic-rate taxpayer, but salary sacrifice still delivers meaningful savings of around 30–35% once tax and NI relief are applied.
Dacia Spring
The Dacia Spring is one of the most affordable electric cars in the UK. Compact, lightweight, and refreshingly simple, it’s designed primarily for urban driving and short commutes. While it isn’t built for frequent motorway journeys, it excels as a low-cost, low-stress way to go electric - especially if you can charge at home.
| Savings breakdown - Dacia Spring 27kWh Expression 45 33kW | £35k Salary |
|---|---|
| Average monthly salary sacrifice (inc VAT) | £192 |
| Employee income savings | -£38 |
| Employee national insurance savings | -£15 |
| Average benefit-in-kind tax over term | £13 |
| Net cost/You pay | £151 |
Best suited to: City drivers, second cars, budget-focused households
MG4
The MG4 is widely regarded as one of the best-value electric cars on the market. It offers a strong real-world range, a surprisingly spacious interior, and confident handling, making it suitable for both city driving and longer trips. Unlike many budget EVs, it feels genuinely versatile.
| Savings breakdown - MG4 150kW SE EV Long Range 64kWh | £35k Salary |
|---|---|
| Average monthly salary sacrifice (inc VAT) | £401 |
| Employee income savings | -£80 |
| Employee national insurance savings | -£32 |
| Average benefit-in-kind tax over term | £25 |
| Net cost/You pay | £314 |
Best suited to: Everyday family use, commuters needing flexibility
Nissan Leaf
The Nissan Leaf is one of the UK’s most established electric cars. It’s comfortable, easy to drive, and well supported by the public charging network. While newer EVs may offer more range or faster charging, the Leaf remains a dependable and reassuring choice.
| Savings breakdown - Nissan Leaf 160kW Engage 75kWh | £35k Salary |
|---|---|
| Average monthly salary sacrifice (inc VAT) | £497 |
| Employee income savings | -£99 |
| Employee national insurance savings | -£40 |
| Average benefit-in-kind tax over term | £31 |
| Net cost/You pay | £389 |
Best suited to: Drivers wanting proven technology and simplicity
What Electric Cars Can I Afford On A £40,000–50,000 Salary?
This salary range opens the door to larger, more versatile electric cars, including a couple of great family options.
Volkswagen ID.Buzz
The ID. Buzz blends iconic design with real-world practicality. Inside, it’s bright, spacious, and flexible, making it ideal for families or active lifestyles. Despite its size, it’s easy to drive and comfortable on longer journeys.
| Savings breakdown - Volkswagen ID.Buzz 210kW Life Pro 86kWh | £45k Salary |
|---|---|
| Average monthly salary sacrifice (inc VAT) | £877 |
| Employee income savings | -£175 |
| Employee national insurance savings | -£70 |
| Average benefit-in-kind tax over term | £52 |
| Net cost/You pay | £683 |
Best suited to: Families, lifestyle drivers, space-hungry households
Mini Cooper Electric
The Mini Electric delivers the familiar Mini fun with instant electric acceleration. It’s compact, quick off the line, and perfect for city or town living. Rear space is limited, but as a daily commuter, it’s comfortable and characterful.
| Savings breakdown - Mini Cooper 135kW E Monochrome 41kWh | £45k Salary |
|---|---|
| Average monthly salary sacrifice (inc VAT) | £375 |
| Employee income savings | -£75 |
| Employee national insurance savings | -£30 |
| Average benefit-in-kind tax over term | £23 |
| Net cost/You pay | £293 |
Hyundai Kona Electric
The Kona Electric is a practical, efficient compact SUV with a strong reputation for reliability. It offers a comfortable driving position, a sensible interior layout, and impressive efficiency for everyday use.
| Savings breakdown - Hyundai Kona Electric 160kW Advance 65kWh | £45k Salary |
|---|---|
| Average monthly salary sacrifice (inc VAT) | £431 |
| Employee income savings | -£86 |
| Employee national insurance savings | -£34 |
| Average benefit-in-kind tax over term | £30 |
| Net cost/You pay | £340 |
Peugeot e-2008
Stylish and practical, the e-2008 combines SUV looks with a compact footprint. It’s easy to manoeuvre, comfortable on longer journeys, and suits drivers who want design without excess size.
| Savings breakdown - Peugeot e-2008 115kW GT 54kWh | £45k Salary |
|---|---|
| Average monthly salary sacrifice (inc VAT) | £385 |
| Employee income savings | -£77 |
| Employee national insurance savings | -£31 |
| Average benefit-in-kind tax over term | £32 |
| Net cost/You pay | £309 |
Best suited to: Style-led drivers, urban and suburban households
What Electric Cars Can I Afford On a £50,000–70,000 Salary?
This is often considered the sweet spot for salary sacrifice - higher tax savings meet genuinely premium EVs.
Kia EV6
The EV6 stands out thanks to its long range, ultra-fast charging, and spacious interior. It’s comfortable on long motorway trips and practical enough for everyday family life.
| Savings breakdown - Kia EV6 125kW AIR SR 63kWh | £60k Salary |
|---|---|
| Average monthly salary sacrifice (inc VAT) | £710 |
| Employee income savings | -£284 |
| Employee national insurance savings | -£14 |
| Average benefit-in-kind tax over term | £67 |
| Net cost/You pay | £479 |
Best suited to: Families, frequent drivers, road-trip enthusiasts
Cupra Born
The Cupra Born offers a sportier take on the electric hatchback. Sharp handling and a refined interior make it engaging to drive, without sacrificing comfort or usability.
| Savings breakdown - Cupra Born 170kW E-Boost V1 79kWh | £60k Salary |
|---|---|
| Average monthly salary sacrifice (inc VAT) | £483 |
| Employee income savings | -£193 |
| Employee national insurance savings | -£10 |
| Average benefit-in-kind tax over term | £63 |
| Net cost/You pay | £344 |
Best suited to: Enthusiastic drivers who still need practicality
Polestar 2
Minimalist, refined, and tech-focused, the Polestar 2 delivers strong performance with a calm, premium interior. It feels distinctly upmarket without being flashy.
| Savings breakdown - Polestar 2 Fastback 220kW 82kWh Long Range SM Prime | £60k Salary |
|---|---|
| Average monthly salary sacrifice (inc VAT) | £623 |
| Employee income savings | -£249 |
| Employee national insurance savings | -£12 |
| Average benefit-in-kind tax over term | £86 |
| Net cost/You pay | £448 |
Best suited to: Professionals, design-focused drivers
What Electric Cars Can I Afford On A £70,000–100,000 Salary?
At this level, premium becomes the norm rather than the exception.
Volvo C40
A refined electric SUV focused on comfort, safety, and sustainability. The C40 delivers a relaxed driving experience with high-quality materials throughout.
| Savings breakdown - Volvo C40 175kW Plus 69kWh | £80k Salary |
|---|---|
| Average monthly salary sacrifice (inc VAT) | £830 |
| Employee income savings | -£332 |
| Employee national insurance savings | -£17 |
| Average benefit-in-kind tax over term | £80 |
| Net cost/You pay | £562 |
Best suited to: Comfort-focused drivers, premium family use
Hyundai IONIQ 6
Designed for efficiency and long-distance comfort, the IONIQ 6 offers impressive real-world range and a quiet motorway ride, with a modern, spacious cabin.
| Savings breakdown - Hyundai Ioniq 6 168kW Premium 77kWh | £80k Salary |
|---|---|
| Average monthly salary sacrifice (inc VAT) | £489 |
| Employee income savings | -£196 |
| Employee national insurance savings | -£10 |
| Average benefit-in-kind tax over term | £81 |
| Net cost/You pay | £364 |
Best suited to: High-mileage drivers, motorway commuters
Tesla Model 3 / Model Y
Tesla’s popular models combine strong range, rapid charging access, and advanced driver-assistance features. The Model 3 suits drivers prioritising efficiency, while the Model Y adds space and versatility.
| Savings breakdown - £80k Salary | Tesla Model 3 RWD | Tesla Model Y RWD |
|---|---|---|
| Average monthly salary sacrifice (inc VAT) | £682 | £768 |
| Employee income savings | -£273 | -£307 |
| Employee national insurance savings | -£14 | -£15 |
| Average benefit-in-kind tax over term | £69 | £72 |
| Net cost/You pay | £464 | £517 |
Best suited to: Tech-focused drivers, frequent travellers, families (Model Y)
Audi Q4 e-tron
The Q4 e-tron delivers premium build quality and a composed driving experience, making it a solid all-rounder for daily commuting and family life.
| Savings breakdown - Audi Q4 e-tron 150kW 40 63kWh S Line | £80k Salary |
|---|---|
| Average monthly salary sacrifice (inc VAT) | £733 |
| Employee income savings | -£293 |
| Employee national insurance savings | -£15 |
| Average benefit-in-kind tax over term | £84 |
| Net cost/You pay | £509 |
Best suited to: Drivers wanting understated premium quality
BMW i4
Blending classic BMW driving dynamics with electric performance, the i4 is smooth, quick, and refined - ideal for executive driving.
| Savings breakdown - BMW i4 Gran Coupe 250kW eDrive40 M Sport 83.9kWh | £80k Salary |
|---|---|
| Average monthly salary sacrifice (inc VAT) | £800 |
| Employee income savings | -£320 |
| Employee national insurance savings | -£16 |
| Average benefit-in-kind tax over term | £105 |
| Net cost/You pay | £568 |
Best suited to: Company car drivers who still enjoy driving
What Electric Cars Can I Afford On A £100,000–150,000+ Salary?
This is where salary sacrifice truly transforms luxury EV affordability.
Porsche Taycan
The Taycan delivers genuine sports-car performance with everyday usability. Acceleration is instant, handling is sharp, and interior quality is among the best in the EV market.
| Savings breakdown - Porsche Taycan 440kW 4S 105kWh | £120k Salary |
|---|---|
| Average monthly salary sacrifice (inc VAT) | £1,870 |
| Employee income savings | -£1,092 |
| Employee national insurance savings | -£37 |
| Average benefit-in-kind tax over term | £252 |
| Net cost/You pay | £993 |
Best suited to: Performance enthusiasts, luxury company car drivers
BMW iX3
Quiet, refined, and familiar to drive, the iX3 offers an easy transition from petrol or diesel SUVs, with excellent comfort and practicality.
| Savings breakdown - BMW iX3 345kW xDrive50 113kWh | £120k Salary |
|---|---|
| Average monthly salary sacrifice (inc VAT) | £953 |
| Employee income savings | -£572 |
| Employee national insurance savings | -£19 |
| Average benefit-in-kind tax over term | £151 |
| Net cost/You pay | £513 |
Best suited to: Families, drivers moving to electric for the first time
Mercedes EQE
Focused on comfort and smoothness, the EQE delivers a serene cabin, advanced technology, and excellent ride quality.
| Savings breakdown - Mercedes-Benz EQE 350+ 235kW Sport Edition 96kWh | £120k Salary |
|---|---|
| Average monthly salary sacrifice (inc VAT) | £980 |
| Employee income savings | -£588 |
| Employee national insurance savings | -£20 |
| Average benefit-in-kind tax over term | £178 |
| Net cost/You pay | £551 |
Best suited to: Executive drivers, long-distance comfort seekers
Genesis GV60
The GV60 stands out with distinctive styling and a premium interior, offering strong performance with a sense of exclusivity.
| Savings breakdown - Genesis GV60 168kW Pure 84kWh | £120k Salary |
|---|---|
| Average monthly salary sacrifice (inc VAT) | £685 |
| Employee income savings | -£411 |
| Employee national insurance savings | -£14 |
| Average benefit-in-kind tax over term | £139 |
| Net cost/You pay | £399 |
Best suited to: Drivers wanting something different from the usual luxury brands
Polestar 3
The Polestar 3 is a large premium SUV with a strong road presence, combining performance, comfort and minimalist design.
| Savings breakdown - Polestar 3 380kW 111kWh Long Range DM Performance | £120k Salary |
|---|---|
| Average monthly salary sacrifice (inc VAT) | £738 |
| Employee income savings | -£443 |
| Employee national insurance savings | -£15 |
| Average benefit-in-kind tax over term | £210 |
| Net cost/You pay | £490 |
Best suited to: Luxury SUV drivers who value restraint and design
Real-World Case Studies
Sarah, £45k Teacher
Switched to a Kia EV6 through salary sacrifice and replaced fuel and servicing with one predictable monthly cost - saving money overall.
James, £75k sales manager
Moved from a petrol lease to a Tesla Model Y, cutting total monthly transport costs while upgrading comfort and technology.
Emma, £125k Finance Director
Chose a Porsche Taycan and now drives a high-performance EV for less than a mid-range petrol saloon.
Frequently Asked Questions About Choosing An EV By Salary
What’s The Minimum Salary Needed To Salary Sacrifice An Electric Car?
There’s no fixed minimum salary. The key rule is that your pay after salary sacrifice must stay above the National Minimum Wage (£23,795 for a full-time worker aged 21+ in 2025/26).
As a rough guide, if you’re sacrificing around £500 per month, you’ll usually need a salary of £30,000 or more. Lower-cost electric cars, such as entry-level city EVs, are accessible to many employees. Your employer or HR team can confirm exactly what’s possible for you.
Can I Afford A Better Car Than I Think?
In most cases, yes. Because salary sacrifice is taken before tax, the real cost is often much lower than expected.
For example, a £500-per-month lease typically feels closer to £400 per month for a basic-rate taxpayer, or around £300 per month for a higher-rate taxpayer. This means many people can afford cars they’d normally associate with a much higher salary.
Does A Higher Salary Always Mean I Can Afford A More Expensive Car?
Generally, yes - but it’s not just about salary. Higher earners benefit from greater tax savings, more flexibility in how much salary they can sacrifice, and fewer minimum wage constraints.
That said, affordability is personal. Mortgages, childcare, pensions and other commitments still matter. As a general rule, many people aim to allocate 10–15% of their gross salary for a car.
How Do I Calculate What I Can Actually Afford?
A simple approach is to check your gross monthly salary, identify your tax band (20%, 40% or 45%), and use The Electric Car Scheme quote tool to see the effective monthly cost.
Make sure your pay stays above minimum wage and that the cost fits comfortably within your budget. Remember, insurance, servicing, maintenance and breakdown cover are usually included.
What If I’m Right On The Boundary Between Tax Brackets?
This can actually work in your favour. Salary sacrifice may shift some of your income into a lower tax bracket, increasing your overall savings while still allowing you to access the car you want.
Can Couples Or Families Combine Salaries For One Car?
Salary sacrifice is tied to one employment contract, so salaries can’t be combined for a single car. Many households plan strategically, with one partner choosing a higher-value EV and the other opting for a lower-cost vehicle.
Does Salary Sacrifice Affect My Ability To Get A Mortgage?
It can affect how your income appears on paper, as your gross salary is reduced. However, many lenders now understand salary sacrifice and may take this into account, particularly given the low Benefit-in-Kind on electric cars.
If you’re planning a mortgage application soon, it’s worth speaking to a broker beforehand.
What Cars Are Available Through The Electric Car Scheme?
The Electric Car Scheme gives you access to a wide range of electric cars, from affordable city models to premium and performance vehicles. There’s no fixed salary limit - eligibility depends on staying above minimum wage, your personal budget and employer approval.
How Does Salary Sacrifice Compare To A Car Loan?
Salary sacrifice is usually more cost-effective because you save Income Tax and National Insurance, benefit from very low electric car BiK, and have insurance, maintenance and breakdown cover included in one monthly cost.
With a car loan, you typically pay from taxed income and cover running costs separately.
What Happens If I Get A Promotion Mid-Lease?
Your monthly sacrifice stays the same, but your effective cost may fall if you move into a higher tax band. In simple terms, a pay rise can make your electric car even better value.
Can I Salary Sacrifice If I’m Self-Employed Or A Contractor?
Salary sacrifice requires PAYE employment. Company directors may be able to access it through their own limited company, while contractors working via umbrella companies may be eligible depending on the provider. Sole traders typically can’t use salary sacrifice.
Is There A “Sweet Spot” Salary For Savings?
Many people find the higher-rate tax band (£50,271–£125,140) offers particularly strong value, combining significant tax savings with comfortable affordability. That said, salary sacrifice works well across a wide range of incomes.
What If My Salary Varies Due To Commission Or Shift Work?
Salary sacrifice usually works best with a stable base salary. Many employers calculate eligibility using guaranteed pay only, which helps avoid minimum wage issues in lower-income months.
Can I Afford A Premium EV If I Sacrifice More Of My Salary?
Possibly - but it’s important to be realistic. While higher sacrifices may still meet minimum wage rules, many people choose to keep their sacrifice within 15–20% of gross salary to maintain flexibility and peace of mind.
How Does Electric Car Range Affect Affordability?
Longer range usually means a higher monthly cost, but it can reduce reliance on public charging. Many drivers find they need less range than expected, especially if they can charge at home.
What’s The Affordability “Sweet Spot” For Salary Sacrifice?
For many people, sacrificing around 8–12% of gross salary offers the best balance of strong tax savings, manageable monthly costs and long-term comfort.
Salary sacrifice removes much of the cost barrier, making electric driving achievable at almost every income level in 2026.
If you’d like to see what this looks like for your salary, the next step is simple. Use The Electric Car Scheme’s quote tool to explore real cars, real savings, and your monthly cost, based on your pay, tax band, and driving needs. It’s the easiest way to find an electric car that fits your lifestyle with confidence!
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Last updated: 02/01/2026
Our 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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