UK to introduce per mile tax on electric vehicles from April 2028, US states may follow
By Eve
The UK government will charge battery electric vehicle drivers 3 pence per mile and plug-in hybrid drivers 1.5 pence per mile starting 1 April 2028, with the Office for Budget Responsibility estimating an annual bill of £255 (around $348) for drivers covering 8,500 miles. Drivers will report odometer readings when renewing vehicle excise duty, paying upfront or in instalments, with rates rising with inflation from 2029. US states are exploring similar mileage based taxation as EV adoption reduces fuel duty revenues.
Why it matters
The policy signals a shift in total cost of ownership for fleet operators and charge point hosts, potentially dampening EV uptake rates that underpin infrastructure investment cases. Procurement teams must factor rising operating costs into business models, while CPOs may see demand patterns change if drivers reduce mileage to avoid per mile charges.
Source
- Original title
- “First The UK, Next The USA: The Mileage Tax Looming Over Electric Cars”
- Published
- 11 September 2026
- Updated
- 12 September 2026
In this story
- Topic
- Policy & Market
- Places
- United Kingdom · United States
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