CO2-Based Tax Still Makes EVs Cheaper to Run. At Least Initially

While it’s true that EVs no longer get a free pass on road tax, they’re still significantly cheaper to tax in the first year. However, from year two onwards, all vehicles will be subject to the same £195 annual VED charge, along with the Expensive Car Supplement (ECS) of £410 per year for five years if the car costs over £40,000.

Comparing Costs: Petrol vs Electric Porsche Macan

If you’re deciding between a petrol or electric Porsche in April 2025 (lucky you), here’s how the tax situation plays out:

• A petrol Porsche will cost £4,680 in first-year VED, whereas the electric version will only pay £10.
• From year two onwards, both models will be taxed at £195 per year, plus an additional £410 ECS for five years if their list price exceeds £40,000.

Of course, the petrol Porsche has a lower starting price—around £15,000 less—but that’s a separate discussion. Also, if you’re leasing an electric Porsche, VED is typically factored into your monthly payments, so you won’t be paying it as a separate cost anyway.