This company car tax calculator works out the benefit in kind (BIK) tax you pay on a car from your employer, whether it is a traditional company car or a salary sacrifice car. Enter the list price, car type and your salary to see the BIK rate, the taxable benefit and the tax each month.
Your company car tax
- Benefit-in-kind rate
- –
- Taxable benefit
- –
- Tax a year
- –
- Tax a month
- –
- Your net cost a month
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In the example, a £40,000 electric car has a 4% BIK rate in 2026/27, so the taxable benefit is £1,600. A basic rate taxpayer pays £586.00 a year, or £48.83 a month.
How to use the company car tax calculator
- Enter the P11D value: the list price including VAT and options, but not the first registration fee or road tax.
- Choose the car type. For plug-in hybrids, enter the official electric range in miles.
- Enter the CO2 figure for petrol and diesel cars.
- Enter your salary and, for a salary sacrifice scheme, the monthly amount taken from your gross pay.
Company car tax rates for 2026/27
The BIK percentage depends on CO2 and, for low-emission cars, the electric range. Full rates are on GOV.UK: tax on company cars.
| Car | BIK rate 2026/27 |
|---|---|
| Fully electric (0g/km) | 4% |
| Plug-in hybrid, 130+ miles electric range | 4% |
| Plug-in hybrid, 70 to 129 miles | 7% |
| Plug-in hybrid, 40 to 69 miles | 10% |
| Plug-in hybrid, 30 to 39 miles | 14% |
| Plug-in hybrid, under 30 miles | 16% |
| Petrol, 51 to 54g/km | 17% |
| Petrol, 120g/km | 30% |
| Petrol, 155g/km and above | 37% |
Salary sacrifice car calculator
With a salary sacrifice car scheme, you give up part of your gross salary in return for the car. You save Income Tax and National Insurance on the amount sacrificed, but you pay BIK tax on the car. For electric cars, the low 4% rate makes this very cost-effective.
For example, sacrificing £500 a month for a £40,000 electric car on a £50,000 salary saves £140.00 a month in tax and NI. After £26.67 a month of BIK tax, the car costs you £386.67 a month. Enter your own sacrifice in the calculator to compare with leasing privately.
Salary sacrifice should not take your pay below the National Minimum Wage, and it can reduce some earnings-linked benefits such as maternity pay or the amount you can borrow on a mortgage.
Company car tax calculator UK examples
| £40,000 car | BIK rate | Taxable benefit | Basic rate tax | Higher rate tax |
|---|---|---|---|---|
| Electric | 4% | £1,600 | £320 | £640 |
| Plug-in hybrid (75 miles) | 7% | £2,800 | £560 | £1,120 |
| Plug-in hybrid (45 miles) | 10% | £4,000 | £800 | £1,600 |
| Petrol 120g/km | 30% | £12,000 | £2,400 | £4,800 |
| Petrol 160g/km | 37% | £14,800 | £2,960 | £5,920 |
Fuel benefit and other costs
If your employer pays for private fuel, there is a separate fuel benefit charge based on a fixed amount multiplied by the BIK percentage. It is often expensive, so many drivers pay for private fuel themselves. Charging an electric company car at work is not a taxable benefit.
Your employer pays Class 1A National Insurance at 15% on the taxable benefit. The calculator shows this in its note.
Related tax calculators
To work out the road tax on a car you own, use the car tax calculator. For your take-home pay, try the monthly take home pay calculator.
Frequently asked questions
How is company car tax worked out?
List price × BIK percentage = taxable benefit. You pay Income Tax on that benefit at your highest rate, usually through your tax code.
Is this a BIK tax calculator for electric cars?
Yes. Electric cars have a 4% BIK rate in 2026/27. It is due to rise to 5% in 2027/28, 7% in 2028/29 and 9% in 2029/30.
Is a salary sacrifice car worth it?
Often for electric cars, because you save tax and NI on the sacrifice and the BIK rate is low. Compare the net cost with a private lease or loan, and check the early termination rules.
Do I pay company car tax if I pay towards the car?
Capital contributions up to £5,000 reduce the list price used, and regular payments for private use reduce the taxable benefit.
About this calculator
This company car tax calculator uses 2026/27 BIK rates and Income Tax bands, checked against GOV.UK on 9 November 2026. It does not include fuel benefit or cars only available for part of the year. Results are estimates.