EV salary sacrifice calculator
See what an electric car through your employer's salary sacrifice scheme really costs you each month, after the income tax and National Insurance you save and the benefit-in-kind tax you pay. Independent of any leasing provider. Everything runs in your browser; nothing you type is sent anywhere.
What it costs you
Employer's National Insurance saving after Class 1A on the benefit: —. Some schemes share part of this with you.
How this is calculated
Enter your figures to see the working.
How EV salary sacrifice works
How does EV salary sacrifice save money?
The lease cost comes out of your gross pay before income tax and National Insurance, so you pay less of both. In return you are taxed on the car as a benefit in kind: for a fully electric car, 4% of its P11D value in 2026/27, added to your taxable income. Because 4% of the car's value taxed at your marginal rate is far less than the tax and NI you avoid on the whole lease, the net monthly cost usually lands 25% to 45% below paying the same lease from take-home pay. Higher earners save more because they avoid 40% or 42% tax; the saving is smaller for basic-rate taxpayers and for hybrids with high benefit-in-kind rates.
What are the benefit-in-kind rates for electric cars?
Fully electric cars are taxed on 4% of their P11D value in 2026/27, 5% in 2027/28, 7% in 2028/29 and 9% in 2029/30, all already legislated. The Autumn Budget on 28 October 2026 added 10% for 2030/31 and left the earlier years and the salary sacrifice rules for cars unchanged. Plug-in hybrids emitting 1 to 50 g/km are banded by electric range, from 4% for 130 miles or more to 16% for under 30 miles in 2026/27, rising by one point in 2027/28 and then moving to a flat 18% in 2028/29. Petrol and diesel cars sit between 15% and 37%, which is why salary sacrifice schemes are almost always electric.
Why does the calculator ask for my tax region?
Scotland sets its own income tax bands and rates on earnings. In 2026/27 there are six: 19% starter, 20% basic, 21% intermediate, 42% higher from £43,663, 45% advanced from £75,001 and 48% top above £125,140. England, Wales and Northern Ireland use 20% to £50,270, 40% to £125,140 and 45% above. The personal allowance of £12,570 is the same everywhere and tapers away above £100,000 of income. National Insurance is a UK-wide tax, so it is the same in both calculations.
Can salary sacrifice take my pay below the minimum wage?
No. After the sacrifice your cash pay must still be at or above the National Living Wage, £12.71 an hour for workers aged 21 and over from 1 April 2026. Employers have to check this, and schemes refuse or cap a car that would breach it. The calculator divides your post-sacrifice salary by the weekly hours you enter and warns you if it falls under the rate. Part-time workers and lower earners hit this limit first.
Does salary sacrifice affect my pension or other benefits?
It can. Your contractual salary is lower, which may reduce pension contributions, death-in-service cover, statutory maternity or sick pay and mortgage affordability, unless your employer protects a "notional" or "reference" salary for those purposes. Most car schemes do, but check the scheme rules before signing. This calculator treats your pension contribution as unchanged by the sacrifice and taken before income tax in the usual net-pay way, so the pension field does not change the net cost of the car; it only makes the take-home figures match your payslip.
Rates checked 31 October 2026 against GOV.UK "Rates and thresholds for employers 2026 to 2027", the Scottish Government's proposed 2026/27 bands (13 January 2026 Budget) and HMRC's company car tax tables, with the 2030/31 EV rate from Autumn Budget 2026 coverage. Tax thresholds are assumed frozen at 2026/27 levels for 2027/28 and 2028/29. The calculation is annual and ignores student loans, child benefit clawback and tax code adjustments. It is general information, not tax advice; your scheme provider or payroll can give you a quote based on your exact code.