BiK Rates for Electric Cars 2026/27 to 2030/31: The Full Table

BiK, short for benefit in kind, is the tax you pay on a perk such as a company car, worked out as the car’s list price times a government set percentage times your income tax rate. For a fully electric car that percentage is 4% in 2026/27, rising to 5%, 7%, 9% and then 10% in 2030/31.

No company car is taxed at a lower rate than an electric one in any year from now to 2031. The table below gives every rate that has been set, and the worked example shows what it means in pounds.

What are the BiK rates for electric cars from 2026/27 to 2030/31?

The BiK rate for a zero emission car is 4% in 2026/27, 5% in 2027/28, 7% in 2028/29, 9% in 2029/30 and 10% in 2030/31. It was 3% in 2025/26. These come from the government’s Budget 2026 rates annex, which sets out the appropriate percentage for every CO2 band.

CO2 and electric range	2026/27	2027/28	2028/29	2029/30	2030/31
0g/km (fully electric)	4%	5%	7%	9%	10%
1 to 50g/km, 130 miles or more	4%	5%	18%	19%	20%
1 to 50g/km, 70 to 129 miles	7%	8%	18%	19%	20%
1 to 50g/km, 40 to 69 miles	10%	11%	18%	19%	20%
1 to 50g/km, 30 to 39 miles	14%	15%	18%	19%	20%
1 to 50g/km, under 30 miles	16%	17%	18%	19%	20%
51 to 54g/km	17%	18%	19%	20%	21%
120 to 124g/km	30%	30%	31%	32%	33%
160g/km and over	37%	37%	38%	39%	40%

The rates to 2027/28 were set in Finance Act 2023, and those for 2028/29 and 2029/30 in Finance Act 2025. The 2030/31 rates were announced at Budget 2026 in an HMRC policy paper published on 28 October 2026 and will be legislated in Finance Bill 2026 to 27: every band rises by one point and the maximum becomes 40%. Our explainer on the benefit in kind rate for electric cars has more worked examples for the years to 2029/30.

Diesel cars that do not meet the RDE2 standard add 4 points, up to the maximum, which is 37% until 2027/28, then 38%, 39% and 40%.

How is BiK tax on a company car worked out?

Annual BiK tax is the car’s P11D value multiplied by the BiK rate, multiplied by your income tax rate. Divide by 12 for the monthly figure.

The P11D value is the list price: the price the manufacturer publishes for a UK retail sale on the day before the car is first registered, including VAT and delivery, plus standard accessories, but not the first registration fee. HMRC’s guidance says plainly that it is not the dealer’s advertised price, so a discount does not lower your tax. Accessories added later count too, apart from those of £100 or less.

Your income tax rate is your own band. In England, Wales and Northern Ireland in 2026/27 that is 20% on taxable income up to £50,270, 40% up to £125,140 and 45% above. Scottish taxpayers use Scotland’s bands, where the higher rate of 42% starts at £43,663, so a Scottish driver on the same salary can pay more.

You pay because the car is available for private use, and HMRC counts commuting as private use. If your employer also pays for fuel for private journeys, that is taxed separately as a fuel benefit. Your employer pays Class 1A National Insurance on the same taxable value, at 15% in 2026/27.

What does BiK cost on a real electric car?

A £38,990 BYD Atto 3 costs a basic rate taxpayer £25.99 a month in BiK in 2026/27 and a higher rate taxpayer £51.99. The Atto 3 has a list price of £38,990 in November 2026, with a 74.8kWh usable battery and 316 miles of WLTP range; our guide to BYD prices and specs covers the rest of the range.

Method: EV Compared multiplies the £38,990 list price by each year’s BiK rate and by the tax band, then divides by 12, as set out on our methodology page. We treat the list price as the P11D value; HMRC excludes the first registration fee, so if the list price includes it the true P11D value is slightly lower.

Tax year	BiK rate	Taxable benefit	20% taxpayer, a month	40% taxpayer, a month	45% taxpayer, a month
2026/27	4%	£1,559.60	£25.99	£51.99	£58.49
2027/28	5%	£1,949.50	£32.49	£64.98	£73.11
2028/29	7%	£2,729.30	£45.49	£90.98	£102.35
2029/30	9%	£3,509.10	£58.49	£116.97	£131.59
2030/31	10%	£3,899.00	£64.98	£129.97	£146.21

Over the five years a higher rate taxpayer pays £5,458.60 in BiK on this car. The employer’s Class 1A bill in 2026/27 is £233.94.

Now put a petrol car with the same £38,990 list price and CO2 of 130 to 134g/km on the same footing. At 32% in 2026/27 its taxable benefit is £12,476.80, which costs a basic rate taxpayer £207.95 a month and a higher rate taxpayer £415.89 a month. That is eight times the electric car’s bill.

A plug-in hybrid at the same price with 1 to 50g/km and 40 to 69 miles of electric range sits at 10% in 2026/27: £129.97 a month for a higher rate taxpayer. In 2028/29 it jumps to 18%, which is £233.94 a month.

How does BiK work on a plug-in hybrid?

A plug-in hybrid’s BiK rate depends on both its CO2 figure and its electric range until April 2028, then on CO2 alone. A model emitting 1 to 50g/km with 130 miles or more of electric range pays the same 4% as an electric car in 2026/27; one with under 30 miles pays 16%.

From 2028/29 every plug-in hybrid in the 1 to 50g/km band pays 18%, then 19% and 20%. Our report on plug-in hybrid company car tax hitting 18% sets out what the new rate costs in pounds against an electric car.

There is also a transitional rule. A plug-in hybrid registered from 1 January 2025 to 5 April 2028 is treated as emitting 1g/km if its registration certificate shows 51g/km or more, it has at least 1 mile of electric range and its Euro status is not Euro 6d-ISC-FCM or Euro 6e. HMRC’s calculator asks for the zero emission mileage for this reason; your leasing company or fleet provider can give it to you.

Should you go fully electric instead? On the government’s own table, yes, if you can charge at home or at work: in 2028/29 the electric car pays 7% against the plug-in hybrid’s 18%.

What does BiK mean on my payslip, and is it added to my salary?

BiK is not added to your pay as cash; it is a notional amount taxed as if it were income. Until 5 April 2027, unless your employer payrolls benefits, you pay it through a reduced PAYE tax code, which HMRC adjusts when you tell it your car or fuel details have changed.

From 6 April 2027 employers must payroll company cars, vans and fuel. The tax is then deducted through payroll in real time, and HMRC takes the benefit out of your tax code so it is not taxed twice.

What are the common BiK mistakes?

The most common mistake is working out BiK on the wrong price. Tax is charged on the list price, not on the lease rental, the dealer’s discounted price or what the car is worth today. A used electric company car is still taxed on its list price when new, which is why leasing firms have been pressing for lower tax on used EVs.

Other mistakes worth correcting:

• Assuming 2026/27 rates last. The electric rate more than doubles from 4% to 9% by 2029/30, so check the later years before signing a four year lease.
• Using the wrong tax band. Any part of the benefit that falls above £50,270, or £43,663 in Scotland, is taxed at 40% or 42% instead of 20% or 21%.
• Forgetting the taper. Between £100,000 and £125,140 the Personal Allowance is withdrawn, so BiK in that range is effectively taxed at a higher marginal rate.
• Treating commuting as business use. HMRC treats home to work journeys as private.

How can you reduce or avoid BiK on a company car?

You only avoid BiK altogether if the car is not available for private use. You can reduce it in three ways HMRC recognises:

• Pay for private use. Payments you make as a condition of private use are deducted and can cut the charge to nil. Paying for fuel or insurance does not count.
• Make a capital contribution. Up to £5,000 paid towards the car comes off the list price.
• Unavailable days. If the car is unavailable for a run of 30 days or more, the charge is reduced in proportion.

Choosing a lower priced electric car does the most. Our company car tax calculator for electric cars takes a list price and tax band and works out the yearly and monthly BiK for each tax year to 2029/30. HMRC’s own calculator works out the taxable value your employer reports.

What does this mean for choosing a company car?

For a company car or salary sacrifice driver, an electric car is the cheaper choice on tax in every year to 2031, and the list price matters more than anything else. Each £10,000 of list price adds £400 to the taxable benefit at 4% in 2026/27, which is £13.33 a month for a higher rate taxpayer. Our shortlist of company car EVs under £40,000 keeps the BiK at the lower end of the table.

Running costs widen the gap. The Atto 3 manages 4.22 miles per kWh (316 WLTP miles divided by 74.8kWh), so on a 6.5p/kWh off-peak tariff it costs 1.5p a mile to charge at home and 19.4p a mile at 82p/kWh on a public rapid charger. HMRC’s advisory rate for reimbursing business miles in an electric company car is 7p a mile charged at home and 15p on a public charger, from 1 September 2026.

The Budget kept the electric rate well under petrol, though the leasing industry had pushed for a 9% cap after 2030 and got 10%.

If your employer offers a scheme, our guide to EV salary sacrifice and the HMRC rules sets out what you save by tax band.

The verdict, based on the published tables: an electric company car suits almost any driver who can charge at home or at work, and higher rate taxpayers gain the most from it. A plug-in hybrid only holds its tax advantage until April 2028, and a petrol company car costs several times as much in BiK for the same list price. Drivers who cannot charge off-peak should weigh the 19.4p a mile public rapid cost against the tax saving.