Company car tax (BiK) rates
The Benefit-in-Kind appropriate percentage - the share of a company car's value you're taxed on - for electric vs petrol cars, curated from HMRC and legislated years ahead.
Updated 28 October 2026 · reviewed monthly
An electric company car is taxed at 4% Benefit-in-Kind in 2026/27, versus 26% for an equivalent petrol car - and the electric rate is legislated to stay low, reaching 9% by 2029/30 (HMRC, curated by THRIVE).
Cite this
Company-car-tax (BiK) appropriate percentages, curated by THRIVE from HMRC. thrivefleet.co.uk/data/company-car-tax.
Company car tax rates by year, 2026/27 to 2029/30
| Tax year | Electric | Petrol 100-104 g/km | Highest band |
|---|---|---|---|
| 2026/27 | 4% | 26% | 37% |
| 2027/28 | 5% | 26% | 37% |
| 2028/29 | 7% | 27% | 38% |
| 2029/30 | 9% | 28% | 39% |
Worked example, 2026/27: a company car with a £40,000 list price, electric, is a taxable benefit of £1,600 a year (4%). A 20% taxpayer pays £320 a year (£26.67 a month) and a 40% taxpayer £640 (£53.33 a month). The same list price in a 100-104 g/km petrol car is a benefit of £10,400 (26%): £2,080 and £4,160 a year. The £40,000 is an example price; put your car's in the calculator below.
Company car tax calculator
| Tax a year, 2026/27 | £4,640 |
|---|---|
| Employer Class 1A NI a year | £1,740 |
| Same price, fully electric, a month | £53.33 |
The rate rises every April
Company car tax is set in law years ahead. This car costs £386.67 a month in 2026/27 and £413.33 by 2029/30.
Illustrative, not advice. HMRC's appropriate percentages for 2026/27, 2027/28, 2028/29, 2029/30, with 2028/29 onwards as set out in HMRC's published policy paper. Income tax at England, Wales and Northern Ireland rates; Scottish bands differ. Ignores capital contributions, optional remuneration and the fuel benefit charge. The full rate table.
BiK % by tax year
Electric vs a representative petrol car (100-104 g/km)
| Category | Electric | Petrol |
|---|---|---|
| 25/26 | 3% | 26% |
| 26/27 | 4% | 26% |
| 27/28 | 5% | 26% |
| 28/29 | 7% | 27% |
| 29/30 | 9% | 28% |
Next change: 6 April 2027, when the electric rate rises to 5% for 2027/28. After that: 6 April 2028, 7%; 6 April 2029, 9%. All are already legislated by HMRC.
Benefit-in-Kind tax is why electric company cars have taken off. You pay income tax on the "appropriate percentage" of a car's list price each year - so a 26% petrol car costs many times more in tax than a 4% electric one on the same list price. For a 40% taxpayer in a £40,000 car, that is the difference between a few hundred pounds a year and several thousand.
The rates are set in legislation years ahead, so the electric advantage is a known quantity a fleet can plan around: it narrows gradually but stays large through 2029/30. See the salary-sacrifice maths for what that means in take-home terms, car by car.
Salary sacrifice is where most drivers meet these rates. Two rules shape every scheme: for cars emitting no more than 75g/km the normal benefit-in-kind charge applies rather than the value of the salary given up, which is what keeps electric cars the natural choice; and a sacrifice must not take an employee's cash pay below the National Minimum Wage (HMRC, salary sacrifice and the effects on PAYE).
Company car tax and salary sacrifice in the news
- EVA England calls for eVED delay to 2030 and EV benefit-in-kind rates to 2035 in Budget 2026 asks
- Euro 7 confirmed: all new cars and vans must comply from 29 November 2027
- The numbers, 26 Oct: Diesel eases to 199.3p but remains 3.8p up on four weeks ago
- Tusker reports over 500% rise in Pre-loved EV salary sacrifice deliveries
- Tesla Model Y from £41,990, or from £516 a month on salary sacrifice, Electric Car Scheme says
- Skoda Elroq beats Enyaq on salary sacrifice value
- Spring at around £154 a month for higher-rate taxpayers shifts entry-level EV maths
- Used MG4 salary sacrifice saves £81 monthly over new
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| CO2 band | 2025/26 | 2026/27 | 2027/28 | 2028/29 | 2029/30 |
|---|---|---|---|---|---|
| Zero emission (0g/km) | 3% | 4% | 5% | 7% | 9% |
| 1-50g/km, 130+ miles electric range | 3% | 4% | 5% | 18% | 19% |
| 1-50g/km, 70-129 miles electric range | 6% | 7% | 8% | 18% | 19% |
| 1-50g/km, 40-69 miles electric range | 9% | 10% | 11% | 18% | 19% |
| 1-50g/km, 30-39 miles electric range | 13% | 14% | 15% | 18% | 19% |
| 1-50g/km, 0-29 miles electric range | 15% | 16% | 17% | 18% | 19% |
| 51-54g/km | 16% | 17% | 18% | 19% | 20% |
| 55-59g/km | 17% | 18% | 19% | 20% | 21% |
| 60-64g/km | 18% | 19% | 20% | 21% | 22% |
| 65-69g/km | 19% | 20% | 21% | 22% | 23% |
| 70-74g/km | 20% | 21% | 21% | 22% | 23% |
| 75-79g/km | 21% | 21% | 21% | 22% | 23% |
| 80-84g/km | 22% | 22% | 22% | 23% | 24% |
| 85-89g/km | 23% | 23% | 23% | 24% | 25% |
| 90-94g/km | 24% | 24% | 24% | 25% | 26% |
| 95-99g/km | 25% | 25% | 25% | 26% | 27% |
| 100-104g/km | 26% | 26% | 26% | 27% | 28% |
| 105-109g/km | 27% | 27% | 27% | 28% | 29% |
| 110-114g/km | 28% | 28% | 28% | 29% | 30% |
| 115-119g/km | 29% | 29% | 29% | 30% | 31% |
| 120-124g/km | 30% | 30% | 30% | 31% | 32% |
| 125-129g/km | 31% | 31% | 31% | 32% | 33% |
| 130-134g/km | 32% | 32% | 32% | 33% | 34% |
| 135-139g/km | 33% | 33% | 33% | 34% | 35% |
| 140-144g/km | 34% | 34% | 34% | 35% | 36% |
| 145-149g/km | 35% | 35% | 35% | 36% | 37% |
| 150-154g/km | 36% | 36% | 36% | 37% | 38% |
| 155-159g/km | 37% | 37% | 37% | 38% | 39% |
| 160-164g/km | 37% | 37% | 37% | 38% | 39% |
| 165-169g/km | 37% | 37% | 37% | 38% | 39% |
| 170+g/km | 37% | 37% | 37% | 38% | 39% |
Appropriate percentages are curated from the primary HMRC sources, never scraped: the Appendix 2 guidance for current years, and HMRC's policy papers for 2027/28 and 2028/29–2029/30. A monthly drift-watch re-reads the Appendix 2 page and alerts us if a published band changes - it never overwrites the table automatically. The petrol comparator is a representative 100–104 g/km car. Figures under the Open Government Licence v3.0.
Free JSON API - no key, open CORS, cache-friendly:
curl https://www.thrivefleet.co.uk/api/v1/bik{ "unit": "appropriate percentage (%)",
"rates": [ { "tax_year": "2026/27", "fuel": "electric", "appropriate_pct": 4 } ] }Free to use. Please credit THRIVE and link to the page a figure came from: a request, never a condition of use. See the data terms and the API guide.
What are the company car tax (BiK) rates for electric cars in 2026-27?
A zero-emission company car has an appropriate percentage of 4% for 2026/27 - you pay income tax on that share of the car's list price.
What will BiK rates be for electric cars in 2028 and 2029?
Legislation sets the zero-emission rate at 7% for 2028/29 and 9% for 2029/30 - rising 2 percentage points a year but still far below petrol.
Company car tax and salary sacrifice: the guide