Electric Car Salary Sacrifice Calculator
This electric car salary sacrifice calculator shows what an EV really costs after tax and NI. In 2026/27 an electric car’s benefit in kind is 4% of its list price. A £450-a-month lease on a £40,000 EV costs a basic-rate taxpayer about £351 a month in lost take-home pay.
- EV BIK rate 2026/274%
- BIK rate 2027/285%
- Hybrid 130+ mile range4%
Updated November 2026 · Uses 2026/27 BIK and tax rates
Calculate your EV salary sacrifice cost
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How electric car salary sacrifice works
You give up part of your gross salary each month and your employer leases an electric car for you. Because the sacrifice comes off your pay before tax and NI, you save at your marginal rate. You then pay company car tax on the benefit in kind, which for a zero-emission car is just 4% of its list price in 2026/27. Insurance, maintenance and breakdown cover are usually included in the lease.
Company car BIK rates 2026/27
| CO2 emissions | Electric range | BIK rate |
|---|---|---|
| 0 g/km | – | 4% |
| 1 – 50 g/km | 130 miles or more | 4% |
| 1 – 50 g/km | 70 – 129 miles | 7% |
| 1 – 50 g/km | 40 – 69 miles | 10% |
| 1 – 50 g/km | 30 – 39 miles | 14% |
| 1 – 50 g/km | Under 30 miles | 16% |
| 51 – 54 g/km | – | 17% |
| 155 g/km and above | – | 37% |
The rate for electric cars rises to 5% in 2027/28.
Example: £40,000 electric car
| Basic-rate taxpayer | Higher-rate taxpayer | |
|---|---|---|
| Annual benefit in kind (4%) | £1,600 | £1,600 |
| Company car tax a year | £320 | £640 |
| Company car tax a month | £26.67 | £53.33 |
The monthly saving from sacrificing salary is much larger than this tax for most people, which is why EV salary sacrifice is popular.
Things to check before you sign
- Early termination: leaving your job may mean an exit fee, though many schemes include protection.
- Your pay after sacrifice must stay above the National Minimum Wage.
- Pensions, life cover and mortgage applications may use your reduced salary.
- Home charger installation is often offered alongside the scheme.
Frequently asked questions
What is the BIK rate for electric cars in 2026/27?
4% of the car’s list price for zero-emission cars, rising to 5% in 2027/28.
How much does EV salary sacrifice save?
On a £450-a-month lease for a £40,000 EV, about 22% of the lease cost for a basic-rate taxpayer and about 30% for a higher-rate taxpayer, after BIK tax.
Is EV salary sacrifice worth it for a basic-rate taxpayer?
Usually. On a £450-a-month lease and a £40,000 car, the calculator shows a net cost of about £351 a month instead of £450.
Do plug-in hybrids qualify for low BIK?
Yes, if they emit 1 to 50 g/km. The 2026/27 rate is 4% to 16% depending on electric range.
Sources and method
We use official UK guidance and recognised formulas, and test each calculator against worked examples. Results are estimates to help you plan, not professional advice. See how we work.