Will the tax on an EV really be more expensive than a fuel guzzler?

It has been a long time coming, but now it has really started after Budget Day 2025 ; electric cars will be taxed more heavily! The BPM exemption is already over and the rebate on motor vehicle tax (MRB) will be phased out. But does this mean that a used electric car will soon be more expensive than a fuel car? The honest answer: no. Granted, it will be more expensive than before, but no, not yet more expensive than a fuel car. In this blog, we explain how that is.

BPM: from exemption to fixed base

Until 2025, electric cars were exempt from BPM (the purchase tax). As of 2025, a fixed foot of about €667applies upon registration, even if EVs emit 0 grams of CO₂. By comparison, a fuel car with 105 g/km CO₂ (such as a Kia Niro HEV) pays over €3,200 BPM. In short: even though as an EV driver you now pay BPM, the difference remains huge in your favor.

MRB: discount decreases, weight counts more

The MRB (road tax) is based on both weight and emissions. And that is exactly where EVs score harder: batteries make the car heavier. That is why for years there was a substantial discount as well as a weight correction for electric cars. That will change:

• 2025: EVs still get a 75% discount on MRB.
• 2026-2028: discount of 30% on MRB.
• 2029: discount of 25% on MRB
• 2030: the discount disappears completely and you pay the full rate

In other words: EVs are gradually moving toward the same MRB rate as fuel cars.

Compare: apples to apples

Comparing a Tesla Model 3 to a Volkswagen Golf? That's apples to oranges. The fairest comparison is a model that exists in multiple powertrains. Consider the Kia Niro, available as a hybrid (HEV), plug-in hybrid (PHEV) and all-electric (BEV). Below is a sample calculation showing the plans as of 2026.

👉 Assumptions: official CO₂ values (Source: Kia), BPM tax brackets, MRB (North Holland province, 2026 rates).

What do you see here? Despite the electric Niro being over 20% heavier, you still pay less MRB than the hybrid variants. Add in the lower BPM, and the BEV still comes out better financially.

And the taxes for my electric car after 2030?

The obvious question: will an EV then become more expensive than a fuel car from 2030? Honest answer: we don't know yet. In fact, there are two major uncertainties at play:

1. Technological progress - Batteries are becoming increasingly efficient and lighter. With a smaller battery pack you will soon be able to achieve the same realistic range. That means: less weight, so lower MRB.
   
   
2. Policy plans under development - The government is investigating other forms of car taxation, such as pay by use or even pay by surface of the car. In that scenario, smaller used electric cars would actually remain a lot cheaper than their fuel counterparts.
   
   

In addition, political parties vary widely in their ambitions: from completely equal rules for all cars, to strictly discouraging fuel driving. How this works out remains a subject for the next Budget Day debate (and a subsequent blog).

Conclusion:

Yes, the tax on electric cars is going up. You will pay more MRB and for the first time a little BPM. But: even with those changes, electric cars are still cheaper than fuel cars, especially if you compare apples to apples. Whether that will remain true after 2030? That depends on technological breakthroughs and political choices.

And until then: a used electric car is still a smart choice financially, environmentally and practically.

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