How Much Could You Save Getting an EV Through Work?
How Much Could You Save Getting an EV Through Work?
Electric vehicles through salary sacrifice can be one of the most tax-efficient employee perks. Your payments are taken before tax, reducing income tax and employee NIC, while EV BIK rates remain low.
This calculator estimates your real monthly cost and compares it with a private lease.
Tell us the EV list price and monthly salary sacrifice amount.
We use your marginal tax and NIC bands to estimate monthly savings.
See net monthly cost including BIK and compare against private leasing.
Use Taxd's EV Salary Sacrifice Calculator to estimate the true monthly cost of getting an electric car through a workplace salary sacrifice scheme. Enter the car's list price, your monthly salary sacrifice amount and your tax position to see an estimated net monthly cost after tax and National Insurance savings, alongside a comparison with private leasing.
How Your Estimate is Calculated
The calculator lowers your gross salary by the amount you sacrifice, which cuts the Income Tax and employee National Insurance you pay on it. It then adds back the Benefit in Kind tax due on the car, based on its list price and the electric-car percentage for the tax year. What is left is your estimated true monthly cost of having the car through the scheme.
What to Keep in Mind:
For 2026/27, a fully electric car is taxed at 4% of its list price as a Benefit in Kind. HM Treasury has already announced higher rates for later tax years. Electric cars also sit outside the wider Optional Remuneration Arrangements rules, which normally compare a sacrifice against its cash value, and that is a big part of why EV salary sacrifice is so tax-efficient. Because the saving comes from your Income Tax and National Insurance rate, it is generally worth more to higher and additional rate taxpayers.
What This Estimate May Not Include:
Your employer's specific scheme rules, and any arrangement or early-termination fees. Other salary-linked benefits, such as pension contributions or statutory pay, that a lower post-sacrifice salary could reduce. The Benefit in Kind rate rising in later tax years. Class 1A National Insurance, which your employer pays on the benefit rather than you.