EV salary sacrifice calculator
Find out what an electric car through your employer's salary sacrifice scheme really costs each month, and whether it beats a personal lease.
Real cost to you (2026/27)
£386.67
a month from take-home pay, a 23% saving on the gross cost
- Salary given up
- £500.00
- Income tax saved
- −£100.00
- National Insurance saved
- −£40.00
- Company car tax (4% BIK)
- +£26.67
Your employer saves about £660 a year in National Insurance. Some schemes pass part of this on to you.
How EV salary sacrifice works
You give up part of your gross salary and your employer provides an electric car, usually with insurance, servicing and breakdown cover included. Because the payment comes out before tax, you save income tax and National Insurance on it. The car is a company car benefit, but electric cars have a very low BIK rate (4% in 2026/27), so the tax on the benefit is small.
The saving is biggest for higher-rate taxpayers, and for anyone earning between £100,000 and £125,140, where the sacrifice can also win back some of the personal allowance.
Things to check before you sign
- The sacrifice can't take your pay below the National Minimum Wage.
- A lower salary can reduce pension contributions, mortgage borrowing and some benefits tied to salary.
- Check the early termination terms if you leave your job or go on long-term leave.
- This calculator is for fully electric cars. Cars over 75g/km on salary sacrifice are taxed on the higher of the BIK and the salary given up, so the saving is much smaller.
Uses 2026/27 income tax and National Insurance rates for England, Wales and Northern Ireland, and the same thresholds for later years.
Rates for 2026/27, checked against the official sources on : HMRC company car appropriate percentages, GOV.UK Income Tax rates and HMRC National Insurance rates. Tax rules can change at a Budget; we update these tools when they do.
Frequently asked questions
›Is EV salary sacrifice worth it?
For most taxpayers, yes. After company car tax, a basic-rate taxpayer typically saves about 20–25% of the gross cost and a higher-rate taxpayer about 30–40%, depending on the car's list price. That's before counting the insurance and maintenance usually included.
›Do I still pay company car tax on salary sacrifice?
Yes, on the car's BIK value: 4% of the list price in 2026/27 for a fully electric car. The calculator includes it.
›Does salary sacrifice affect my pension?
It can. If your employer works out pension contributions on your reduced salary, you could lose some. Many employers use the pre-sacrifice salary: check your scheme.