Salary sacrifice calculator
What every electric car would cost from your take-home pay on salary sacrifice, with Benefit-in-Kind tax included.
- Tax
- 2026-27 rates
- BiK
- 4%
- Prices
- our estimate
4 years · 10,000 miles · change
Checks your pay stays above the National Living Wage.
170 EVs ranked by what leaves your take-home pay
Prices are our estimate from list price, so the order mostly follows price. Add a real quote on any car to replace ours.
Dacia Spring
Your monthly cost, 2026-27
£166a month from your take-home pay
£54 a month less (24%) than paying £220 from take-home pay
- Take-home now
- £2,993
- Take-home after
- £2,827
- BiK tax inside that
- £8/mo
- Over 4 years
- £8,203
| Tax year | BiK | Per month |
|---|---|---|
| 2026-27 | 4% | £166 |
| 2027-28 | 5% | £168 |
| 2028-29 | 7% | £172 |
| 2029-30 | 9% | £176 |
Your cost rises as the BiK rate does. Total £8,203 against £10,560 paying the same price from take-home pay. Later years assume today's tax thresholds.
Does your employer offer salary sacrifice?
A £400/month EV on salary sacrifice, 2026-27
A £35,000 electric car on a £400/month package, paid from gross salary in England, Wales or Northern Ireland:
| Salary | You pay per month | Saving |
|---|---|---|
| £30,000 | £311 | £89 (22%) |
| £60,000 | £279 | £121 (30%) |
| £110,000 | £222 | £178 (45%) |
How EV salary sacrifice works
Your employer leases the car and you give up part of your gross salary to cover it. Because the money comes off before income tax and National Insurance, the car costs you less than the same lease paid from take-home pay. The car counts as a company car, so you pay Benefit-in-Kind tax on it, but for electric cars that is only a few percent of the list price. The calculator includes it.
Salary sacrifice is only available if your employer runs a scheme. Packages usually include insurance, servicing and breakdown cover in one monthly payment.
The minimum wage rule
Your pay after the sacrifice must stay at or above the National Living Wage (£12.71 an hour from April 2026). Add your hours to the calculator to check.
The £100,000 tax trap
Between £100,000 and £125,140 you lose £1 of personal allowance for every £2 you earn, an effective tax rate of 60%. Salary sacrifice brings your taxable pay down, so in that band it saves far more. Try a £110,000 salary above.
What this calculator assumes
- Tax, NI and BiK use HMRC rates for 2026-27 (and Scottish rates if you pick Scotland). Later years assume today's thresholds.
- Without your own quote, the monthly price is our estimate from the car's list price, contract length and mileage, including insurance and servicing. Get an exact quote before deciding.
- Pension contributions and student loans are not included.
Common questions
- How much does an electric car cost on salary sacrifice?
- It depends on your salary and the car. On a £60,000 salary, a £400/month package costs about £279/month from take-home pay in 2026-27, including Benefit-in-Kind tax on a £35,000 car. The saving grows with your tax band.
- Can salary sacrifice take my pay below the minimum wage?
- No. Your pay after the sacrifice must stay at or above the National Living Wage (£12.71 an hour for workers aged 21 and over from April 2026). Employers have to refuse a sacrifice that would breach it, so enter your hours in the calculator to check.
- Why is salary sacrifice worth more between £100,000 and £125,140?
- Your personal allowance shrinks by £1 for every £2 you earn over £100,000, so income in that band is taxed at an effective 60%, plus 2% National Insurance. Sacrificing salary from that band recovers the lost allowance as well as the tax, so the saving is much bigger than for a higher-rate taxpayer on a lower salary.
- Does my employer have to offer salary sacrifice?
- No. It is optional, and you can only use it if your employer runs a scheme. Employers save 15% employer National Insurance on the salary you sacrifice, minus 15% Class 1A National Insurance on the car benefit, which often covers the cost of running one.
- What if my employer doesn't offer salary sacrifice?
- Ask HR or your benefits team. Many employers have never been asked, and the National Insurance they save on the salary you give up often covers the cost of running a scheme. The calculator can write the email for you.
- Can I choose my salary sacrifice provider?
- Usually not: your employer picks the provider and you choose a car from its range. Some employers run more than one provider, so if yours doesn't list the car you want, ask HR whether they would add another.
Want the company car tax on its own? Use the BiK calculator.