Electric Car Salary Sacrifice Calculator UK
Work out the real net monthly cost of any electric car on a UK salary sacrifice scheme — income tax saved, National Insurance saved, and Benefit-in-Kind added back — on 2026/27 HMRC figures.
How it works
You sacrifice part of your gross salary for a fully maintained, insured EV. The sacrifice comes off pre-tax, so you save income tax and employee NI on it. In return you pay BiK tax on the car's P11D value — for EVs that BiK rate is currently 4%.
EV BiK schedule (HMRC)
- 2026/27: 4% of P11D
- 2027/28: 5% of P11D
- 2028/29: 7% of P11D
- 2029/30: 9% of P11D
Petrol and diesel BiK rates sit between 20% and 37% over the same period, which is why EVs remain the only sensible salary-sacrifice option.
Who it suits
Higher-rate (40%) taxpayers see the biggest cash saving because they save more tax per £1 sacrificed. Basic-rate (20%) employees still gain, but the absolute saving is smaller. Anyone earning between £100,000 and £125,140 sits in the personal-allowance taper band — effective 60% marginal rate — and tends to see the largest proportional benefit.
The net cost formula
Net monthly cost = gross monthly lease − (income tax + NI saved on the sacrifice) + BiK tax. Tax and NI are calculated against 2026/27 UK bands (England, Wales & NI; Scottish bands differ).
Browse per-car salary sacrifice pages
Every electric car in our database has its own salary sacrifice page with indicative net monthly cost at a £55k salary, the BiK breakdown and an editable calculator. See the full EV list or pick from popular salary-sacrifice models below.
Frequently asked questions
What is electric car salary sacrifice?
You give up a chunk of gross salary in exchange for a fully insured, taxed and maintained electric car. Because the deduction comes off pre-tax pay you save income tax and employee National Insurance on it; in return HMRC charges you Benefit-in-Kind (BiK) on the car's P11D value at the EV rate (4% in 2026/27).
How is the net monthly cost worked out?
Net cost = gross monthly lease − (income tax + NI saved on the sacrificed amount) + BiK tax on the car's P11D. The calculator does this for any salary, EV and term you choose using 2026/27 UK tax bands.
What's the EV BiK rate from 2026 onwards?
4% in 2026/27, 5% in 2027/28, 7% in 2028/29 and 9% in 2029/30. Still well below petrol or diesel, which sit in the 20-37% range.
Does my employer have to offer it?
Yes. Salary sacrifice runs through your employer's payroll, so they need an active scheme with a provider. If they don't, the calculator lets you generate a one-page case to send them.