Company car tax (BiK) calculator
Estimate electric company-car tax using the calculator’s budget and contract settings. Compare the displayed figures for different cars and tax years using the assumptions shown.
From your company car policy. No cap? Switch to monthly tax.
20% taxpayer on this salary
A £40,000 cap opens 99 of 170 electric cars. Tax from £8 to £27 a month this year, and the rate climbs from 4% to 9% over your contract.
Dacia Spring
List price before any grant. Add options from your quote.
Tax year by year
| Tax year | Dacia Spring | a plug-in hybrid at the same price |
|---|---|---|
| 2026-27 | £40 (5 months at 4%) | £100 (10%) |
| 2027-28 | £120 (12 months at 5%) | £264 (11%) |
| 2028-29 | £168 (12 months at 7%) | £432 (18%) |
| 2029-30 | £216 (12 months at 9%) | £456 (19%) |
| 2030-31 (assumed) | £126 (7 months at 9%) | £266 (19%) |
No rate is set for 2030-31 yet; we've assumed it stays at 9%.
Plug-in hybrids move to a flat 18% in 2028-29, whatever their electric range.
How company car tax works
A company car you can use privately is a taxable benefit. The benefit is the car’s P11D value (its list price with VAT, delivery and options) times a percentage set by its CO2 emissions. You pay income tax on that benefit at your own rate, so the same car costs a higher-rate taxpayer twice what it costs a basic-rate one.
Use the calculator to compare company cars within your budget. Review the vehicle price, tax year and other displayed assumptions when interpreting each estimated tax figure.
Rates by year
| Tax year | Electric | Plug-in hybrid (30 g/km, 45 miles) | Hybrid (100 g/km) | Petrol (140 g/km) |
|---|---|---|---|---|
| 2025-26 | 3% | 9% | 26% | 34% |
| 2026-27 | 4% | 10% | 26% | 34% |
| 2027-28 | 5% | 11% | 26% | 34% |
| 2028-29 | 7% | 18% | 27% | 35% |
| 2029-30 (announced) | 9% | 19% | 28% | 36% |
The 2028 plug-in hybrid change
Until April 2028 a plug-in hybrid’s rate depends on how far it goes on electricity. From 2028-29 every car emitting 1 to 50 g/km pays the same 18%, so a plug-in hybrid on 7% today (70 to 129 electric miles) jumps to 18%. Electric cars pay 7% that year.
What this calculator leaves out
- Fuel benefit charge: electricity is not a car fuel for this charge, so it does not apply to electric cars.
- Class 1A National Insurance: your employer pays it on the benefit. It does not change your take-home pay.
- Scheme fees and options: type the P11D from your quote to include options and delivery.
Common questions
- How much is company car tax on an electric car?
- Electric company cars pay 4% of their P11D value as a taxable benefit in 2026-27, taxed at your income tax rate. On a £40,000 car that is £1,600 a year of benefit, about £53 a month for a 40% taxpayer.
- Will the BiK rate for electric cars go up?
- Yes. It rises a point a year to 5% in 2027-28, then two points a year to 9% in 2029-30. No rate has been set after that, so this calculator assumes it stays at 9%.
- What happens to plug-in hybrid company car tax in 2028?
- Until April 2028 a plug-in hybrid's rate depends on its electric range. From 2028-29 every car emitting 1 to 50 g/km pays 18%, whatever its range, against 7% for an electric car.
- What is the P11D value?
- The list price including VAT, delivery and any options, before discounts and before any government grant. The first registration fee and road tax are left out. Your employer or leasing company quote shows the exact figure.
- Does every electric car pay the same BiK rate?
- Yes. All zero-emission cars share one rate each tax year, so the price of the car is the only thing that changes the tax. That is why this calculator starts from your budget.
No company car? See what the same car costs on salary sacrifice with the salary sacrifice calculator.