How Much Is the Road Tax for Tesla Model 3 [UK]?

By Zac Ludicrous •  Updated: 08/20/22 •  5 min read

Road tax for regular ICE vehicles is straightforward, but when it comes to EVs like the Tesla Model 3, things get a bit confusing.

The government announced no tax for EV owners, but if the case is this or that, EV owners will have to pay taxes . . . ughhh . . . CONFUSING.

Well, no need to fret as I’ve compiled this guide just to clear your confusion in as simple terms as possible. No technical accounting terms or whatever!

Let’s solve the tax dilemma of the Tesla Model 3 once and for all.

How Is Road Tax for EVs Calculated in the UK?

Starting from the basics, how does the UK government determine the total taxable amount for EVs or zero-emission vehicles?

Before 2001, engine size was the metric based on which the total road tax, officially known as the Vehicle Excise Duty (VED), was calculated.

But for vehicles registered after March 2001, the road tax is calculated based on three metrics:

  1. Total CO2 emissions
  2. The year the vehicle was registered
  3. The cost of the vehicle itself

But for zero-emission vehicles specifically, the taxable amount is divided into two categories:

1. BEVs (battery electric vehicles)

2. PHEVs (plug-in hybrid electric vehicles)

Finally, there is one more type of road tax applied on vehicles in the UK that is known as the Luxury Car Tax UK.

Any owner who owns a car having a list price of more than £40,000 has to pay an additional road tax or VED, that is, the Luxury Car Tax UK. 

As the Model 3 and other Teslas have a list price of £40,000+, VED used to be applied to them.

However, in the 2020 budget, it was decided to exempt all zero-emission vehicles, including Teslas, from this tax.

The following was the objective of this policy as described by the government of the UK:

This measure will incentivise the uptake of zero-emission light passenger vehicles by reducing their VED liabilities. This will support the government’s ambition to increase zero-emission vehicle uptake. 

UK Gov

How Much Is Road Tax for Tesla Model 3 in the UK?

Road tax or VED for the Model 3 or other zero-emission vehicles is £0 per the 2020 budget and legislation.

Previously, a Luxury Car Tax was applied to the Model 3 or other Teslas, but after 2020, that too had been lifted.

To summarize, you don’t have to pay even a cent toward the VED if you live in the UK and drive a Tesla Model 3 until March 31, 2025.

How to Tax Your Tesla Model 3 in the UK?

Whaaaattt… If the Model 3 road tax is zero, why do I need to tax it?

Well, because the government wants you to. Even if you don’t have to pay anything toward the VED, you’d still have to tax your car at £0. Here’s how to do it:

  1. Tap this link.
  2. Click “Start Now.”
  3. Now it’ll ask you if you’ve received the V11 reminder letter or not. Click “Yes” (if you’ve received the V11 reminder letter).
  4. Your V11 reminder letter contains a 16-digit reference number. The next page will ask you to put in that 16-digit reference number. Follow the instructions.
  5. In the next step, it’ll ask you to review your vehicle details. If everything looks good, click “Continue.” Otherwise, tap the “Contact DVLA” link and submit your concerns.
  6. In the final step, it’ll show you road tax details such as total payable amount, start date, etc. You can also put in your email address at this step to receive a confirmation receipt. It’s optional though. Review it and tap the “Continue” button. 
  7. Congrats! Your process of paying VED for your Model 3 (or any other Tesla) has been completed.

Frequently Asked Questions

Do I have to tax my Tesla?

Yes, you do have to tax your Tesla even if the payable amount is £0. Just follow the steps described above and you’ll be able to tax your Tesla in under five minutes.

Is the Tesla Model 3 tax-free in the UK?

Yes, the Model 3, or any other Tesla for that matter, has been tax-free since 2020 and will remain tax-free until March 31, 2025.

Final Thoughts: How Much Is the Road Tax for Tesla Model 3?

So a sigh of relief for you, innit? Absolutely no road tax, Vehicle Excise Duty, or whatever they call it for your Tesla Model 3.

It’s in fact a great gesture by the UK government to promote sustainability and a greener climate as a dire need of the hour. You know, global warming and all that shit destroying our planet.

An important point though. Just because your vehicle is tax-free doesn’t mean you don’t have to tax it every year. Follow the instructions above and tax your vehicle at £0 as the government requires you to do so. 

Apart from that, you’re covered. Have fun!

Zac Ludicrous

Mechanical engineer by profession. TSLA shareholder before the hype. EV enthusiast all day long. Zac enjoys learning about the future of battery technology, autonomy, and EVs. He considers Tesla Model 3 the most important vehicle of the 21st century -- and is in a quest to improve the ownership experience of every Model 3 owner he possibly can.

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