Electric car tax in Europe 2026: effect on used EV demand
Electric car tax in Europe in 2026: road tax, company car tax and registration tax on EVs in Germany, the Netherlands and the UK, and the used EV impact.
· 9 min read
Electric car tax in Europe is rising slowly but unevenly in 2026. Germany still exempts EVs from road tax and keeps a low company-car rate, the Netherlands charges EVs 70% of normal road tax, and the UK has taxed EVs since 2025 with a per-mile charge coming in 2028. For used EVs, these rules shift demand between countries, buyer groups and model sizes.
Electric car tax in 2026: overview by country
The three taxes that matter for a used EV are the annual road tax, the company-car benefit and any one-off registration tax. The table summarises the verified rules in three key markets.
| Country | Annual road tax on EVs | Company-car tax on EVs | One-off registration tax |
|---|---|---|---|
| Germany | Exempt for 10 years if first registered by 31 Dec 2030, until 31 Dec 2035 at the latest (§ 3d KraftStG) | 0.25% of list price per month for BEVs up to €100,000 gross list price, acquired before 2031 (§ 6 EStG) | None |
| Netherlands | 30% discount on the motorrijtuigenbelasting (MRB) in 2026–2028, 25% in 2029, none from 2030 | Bijtelling 18% up to €30,000 list price, 22% above, for EVs first registered in 2026 | BPM fixed amount for EVs since 2025 |
| United Kingdom | Vehicle excise duty since April 2025; £440 a year expensive car supplement above £50,000 list price for EVs registered from April 2025 | Benefit-in-kind rates rising year by year | None |
Other markets have their own systems. Belgium favours zero-emission company cars in its deductibility rules, and Norway has begun to scale back the VAT exemption that made EVs cheap there. Check the current national rules before you price a car for a specific country.
Germany: road tax exemption that transfers with the car
German EV tax rules remain favourable in 2026 and they apply to used cars, which is a selling point for dealers.
Road tax. Under § 3d of the Motor Vehicle Tax Act (KraftStG), pure electric cars first registered between 18 May 2011 and 31 December 2030 are exempt for ten years from first registration, but no longer than 31 December 2035. The exemption is granted once per car and passes to the new keeper if it has not expired. A 2021 EV sold today is therefore still tax-free until 2031.
Company cars. Under § 6 of the Income Tax Act (EStG), a battery-electric company car with a gross list price of up to €100,000 is taxed on a quarter of the list price, so 0.25% per month instead of 1%. The decisive date is the acquisition, which must fall before 1 January 2031. That means a business buying a used EV from you in 2026 still gets the low rate.
Plug-in hybrids acquired between 2025 and 2030 qualify for half the rate (0.5%) only if they emit no more than 50 g CO2/km or have at least 80 km of electric range. Many older PHEVs fail that test.
For dealers, the message is simple: in Germany, self-employed and company buyers are a real market for young used EVs, and the road tax exemption is an easy argument in the advert.
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Request accessNetherlands: EVs now pay most of the road tax
The Netherlands is the clearest example of EV tax rising year by year.
Road tax (MRB). According to the Dutch government, zero-emission cars get a 30% discount on MRB in 2026, 2027 and 2028, 25% in 2029 and none from 2030. EVs therefore pay 70% of the normal rate, which is weight-based. Heavy EVs such as large SUVs cost noticeably more to keep than a few years ago. Plug-in hybrids no longer receive any MRB discount and have paid the normal rate since 2026.
Company cars (bijtelling). For EVs first registered in 2026, the private-use addition is 18% on the first €30,000 of the list price and 22% on the rest, according to the Belastingdienst. The normal rate for other cars is 22%.
Registration tax (BPM). Electric cars have paid a fixed BPM amount since 2025, instead of being exempt. If you import a used EV into the Netherlands, see our guide to BPM on imported used cars.
The Dutch market has a large supply of ex-lease EVs, and rising running costs give private buyers less reason to pay a premium. That helps explain why some Dutch EV prices are low. According to listings tracked by MyCarDealer in October 2026, a 2021–2023 Skoda Enyaq had a median asking price of €24,950 in the Netherlands (349 listings) against €31,890 in Germany (135 listings).
United Kingdom: VED now, pay-per-mile from 2028
The UK ended the road tax exemption for EVs in April 2025 and has set out a mileage charge from 2028. Most of our readers trade in continental Europe, but UK rules shape headlines and buyer expectations.
- Vehicle excise duty (VED). Electric cars have paid VED since 1 April 2025.
- Expensive car supplement. According to GOV.UK, an electric car with a list price above £50,000 pays an extra £440 a year if it was registered from 1 April 2025. Zero-emission cars registered before that date are exempt from the supplement.
- Electric Vehicle Excise Duty (eVED). From 1 April 2028, battery-electric cars will pay 3 pence per mile and plug-in hybrids 1.5 pence per mile, on top of VED, uprated with inflation from 2029–30. Drivers will give an odometer reading and estimate their mileage for the year.
A car covering 10,000 miles a year would pay £300 in eVED at 3p per mile. High-mileage drivers, who often benefit most from cheap electric running, will notice it most.
How do EV tax changes affect used EV prices?
EV tax changes affect used EV prices through three channels: who buys new, which used cars become more expensive to run, and where cars flow across borders.
- Company-car rules decide future used supply. Low benefit-in-kind rates fill fleets with EVs. Three to four years later those cars return as ex-lease stock. Generous rules in Germany and the Netherlands are the reason both countries now produce so many used EVs.
- Road tax increases hit heavy cars first. In weight-based systems like the Dutch one, a large SUV loses more appeal than a small hatchback when the discount shrinks. Price large EVs with that in mind in affected markets.
- Cross-border price gaps open up. When one country raises EV tax and another does not, used cars move to where they are worth more. Dutch and Belgian lease returns going to other markets are a typical example.
A useful check is how level prices are for the most common EV. According to listings tracked by MyCarDealer in October 2026, a 2022–2024 Tesla Model Y had a median asking price of €34,490 in Germany, €35,099 in the Netherlands, €34,990 in Belgium, €34,738 in Sweden and €34,841 in Norway. For a mass-market car with many buyers, tax differences are mostly priced in already. For less common models, such as the Enyaq above, the gaps are wider and worth trading on.
What happens to an EV after five years?
After five years an EV is in its second or third ownership, and taxes start to matter more than the subsidies it was bought with. In Germany it keeps its road tax exemption until its tenth year or the end of 2035, whichever comes first. In the Netherlands it pays road tax at the same rate as a new EV, because the discount depends on the year, not the age of the car.
The bigger issue for value is the battery and the warranty. Many manufacturers give eight years on the battery, so a five-year-old car still has some cover. A recent state-of-health report is the best way to protect the price; see our EV battery health check.
What dealers should do about EV tax changes
Dealers should treat tax changes as pricing events and plan stock around them.
- Note the dates. Write down when road tax, company-car or registration rules change in your selling markets and avoid holding the affected cars across that date.
- Sell the tax position. In Germany, state the remaining road tax exemption in the advert. For business buyers, mention that a used EV qualifies for the 0.25% rule.
- Watch heavy EVs in weight-based systems. Lower your maximum bid for large EVs where road tax is rising.
- Use the gaps. Buy where tax has pushed prices down and sell where demand is stronger, after transport, VAT and registration costs. Our used electric cars for dealers guide covers the basics.
MyCarDealer shows what a specific EV is worth in your own country from current listings and the maximum you can pay after VAT, transport and costs. Try it with a free valuation.
Frequently asked questions
Do electric cars pay road tax in 2026?
It depends on the country. In Germany, EVs first registered by the end of 2030 are exempt for ten years, at most until 31 December 2035. In the Netherlands, EVs pay road tax with a 30% discount in 2026. In the UK, electric cars have paid vehicle excise duty since April 2025.
How is company car tax on EVs changing?
Germany taxes battery-electric company cars at 0.25% of the list price per month if the list price is up to €100,000 and the car is acquired before 2031, including used cars. In the Netherlands, EVs first registered in 2026 have a bijtelling of 18% up to €30,000 and 22% above. Plug-in hybrids are losing most of their advantages.
How will the 3p per mile EV tax work?
From 1 April 2028, UK drivers of battery-electric cars will pay 3 pence per mile and plug-in hybrid drivers 1.5 pence per mile. The charge is collected with vehicle excise duty, based on an odometer reading and an estimate of the coming year's mileage, and rises with inflation from 2029–30.
Which countries are introducing registration tax on EVs?
The Netherlands has charged a fixed BPM amount on electric cars since 2025 instead of exempting them. Norway has started to charge VAT on the more expensive part of new EV prices. Check each market before importing, as these taxes also apply to imported used cars.
How do EV tax changes affect used EV prices?
Higher road tax lowers demand for used EVs, especially heavy ones, while generous company-car rules create a wave of ex-lease supply a few years later. The differences between countries create price gaps that dealers can use when buying abroad.