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Misty Jain

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  • Published: Nov 26 2025 07:32 PM
  • Last Updated: Nov 26 2025 08:08 PM

Electric vehicle drivers to pay new tax from 2028—3p per mile for EVs, 1.5p for hybrids—to fairly fund road maintenance, adding to yearly fees.



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Brand new charges may soon appear on their electricity bills for electric car drivers. Governments across the country are developing a new system that will tax owners of electric vehicles based on the mileage driven instead of based on the consumption of gasoline or diesel. The intent behind this new concept is to make up for the revenue loss from the fuel tax that has been traditionally used to fund road maintenance, which has diminished due to increasing numbers of drivers using electric vehicles.

Why Is This New Electric Car Tax Coming?

As gasoline-powered vehicles decline in usage, gas tax revenues are declining as a result. With this decline in gas tax revenue, there are now less funds available to maintain and build new roads and other infrastructure. The new mileage-based tax system for electric vehicles has been established so that drivers of electric vehicles pay their fair share to maintain our road system — just like Drivers of gasoline-powered vehicles do.

How Will the Pay-Per-Mile System Work?

The proposed system would charge EV drivers a few cents per mile driven, starting around 2028. Drivers estimate their annual mileage and pay up front with their annual vehicle taxes. If they drive less than expected, they could get a refund; if they go over, they'll owe a bit more. This approach avoids privacy issues from tracking devices while keeping road funding steady.

What Does This Mean for Electric Vehicle Owners?

This new tax for electric cars is expected to add about $300 per year for typical drivers in the US, on top of current registration fees. Some drivers worry this may discourage people from buying EVs, but others see it as fair given EVs’ lower fuel taxes. Governments emphasize that this is part of transitioning to a system that supports all road users equally.

Concerns and Reactions from the Public

Many owners of electric vehicles (EVs) are concerned about this new fee and fear it will hinder the move to cleaner vehicles. Privacy is another important issue because some owners worry that the electronic distance measurement of their vehicle will be tracked electronically. To address these concerns, authorities have made it their mission to create a simple and easy-to-understand process that does not involve the use of GPS data or tracking in any way.

Electric Vehicle Pay-Per-Mile Tax Overview

Aspect

Details

Tax Introduction

Expected 2028

Rate

Around 3 cents per mile

Additional Fees

On top of existing registration taxes

Mileage Reporting

Estimated annual prepayment, no GPS

Estimated Cost

Approx. $300 extra per year for average driver

Purpose

Replace declining fuel tax revenue

What’s Next for Drivers and Policy?

If you own an EV, you'll want to monitor government announcements and the evolution of these plans. The tax aims to strike a balance between achieving environmental objectives and providing for the necessary infrastructure and associated funding of the roads while not placing an undue burden on any one group or segment of the population. In the near future, this could become one of the most talked about topics in relation to electronic vehicles and transportation policies.

Source(Image / Thumbnail): www.bbc.com

FAQ

EV owners will pay a pay-per-mile tax starting around 2028, charged based on the miles they drive, to help fund road maintenance.

Since electric cars don’t pay fuel tax, governments need a new way to collect money to fix and build roads.

Electric cars will pay about 3 pence per mile, while plug-in hybrids will pay around 1.5 pence per mile.

The tax is expected to begin in April 2028, with rates rising yearly along with inflation.

Yes, fully electric vehicles and plug-in hybrids will both be charged but at different rates.

Drivers estimate their annual mileage and pay taxes upfront, with adjustments made if they drive more or less.

Some drivers worry the new tax might slow EV adoption, but governments say it ensures everyone pays fairly for road use.

Officials have said no GPS tracking will be used; the system relies on estimated mileage to avoid privacy issues.

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