Electric cars: too much tax?
The upcoming tax on electric cars is generating a lot of discussion. Let’s try to clarify things.
You’ve probably heard about the tax on electric cars that has been causing buzz in the industry for several weeks now. While nothing has been decided yet for France, it would be naive to think this won’t happen. Spoiler: it will happen—it’s absolutely certain and inevitable. The question is rather when, and in what form. And what will the amount of this painful tax be?
In every discussion about the price of a recharge compared to filling up with gasoline, there’s always a grump (usually an anti-EV advocate) who insists the government will never allow motorists to permanently escape fuel taxes. Take advantage of it while you can, they tell us, because once everyone has switched to cars, the trap will close in on those who drive electric vehicles.
No matter how outrageous the idea may seem at first (“state racketting!”), can we really blame the grumpy individual? Not really, as his fear is grounded in common sense. Buying a car typically requires budgeting for several years, while tax rules keep changing regularly. After encouraging French people to switch to electric vehicles, imposing new fees would only reinforce the already strong perception of an overbearing state taking back from them what it pretended to give generously.
We still need to distinguish between what is actually being planned, what stems from considerations of public finances, and what people imagine based on their concerns.
A tax rather than comfort
The debate centers on an issue that will only grow more significant in the coming years and decades: as drivers consume less gasoline and diesel, the associated tax revenues decline. It would therefore be quite surprising if policymakers did not consider this development.
Some countries have already made a decision. In the United Kingdom, a per-kilometer charge for electric cars was announced for April 2028. At the current exchange rate, the planned fee is around 2.2 cents per kilometer, which amounts to approximately 330 euros per year for a driver who travels 15,000 kilometers. Our British friends are pleased to learn that keeping an electric car for five years will cost them about 1,650 euros more—roughly the price of a decent set of optional features. Did you dream of driving an autonomous car with massage seats and managed to save up a little money for it? You’ll just have to hold the steering wheel, suffer from back pain, and pay a tax. As for heavy drivers—who obviously keep their cars for shorter periods—those who travel 50,000 kilometers in say three years will be gently taxed an additional 3,300 euros for environmental and civic reasons.
That said, nothing has been decided yet in our country. When questioned by TF1 Info in August 2026, the Ministry of Economy stated it was not considering a mileage tax on electric vehicles. This statement could easily be described, without any offense, as a half-hearted denial.
For there is indeed a possibility of an annual fee, which is part of the discussions within the Council on Mandatory Levies. According to the published analyses of its report, a possession tax could take into account the vehicle’s weight or size. The figure of 95 euros per car per year, frequently cited, seems plausible. It should be noted, however, that these discussions pertain to private cars in general, so for now it cannot be presented as a future fee specific to electric vehicles.
Real savings, but for how long?
Moreover, having been driving an electric vehicle for a few years (8 years in my case), it’s easy to explain the savings we’ve made over time, as there’s no reason to give up an existing advantage just to protect against a hypothetical future tax.
Yet our enthusiasm for electric vehicles shouldn’t blind us. Take a purely illustrative example: if gasoline costs 12 € to cover 100 km, a 48% tax rate amounts to 5.76 €. If the electricity required costs 4 €, a 43% tax rate amounts to only 1.72 €. Thus, similar percentages can result in vastly different revenues.
The calculation of distributing 3.05 billion euros in TICPE revenues across 40 million cars indeed results in approximately 763 euros per vehicle per year. Does this mean that, in the worst-case scenario, this would be the annual tax amount the state would impose on electric cars? Not really, because it assumes that all of this revenue would be applied only to private cars, whereas fuel taxes cover a broader range, including corporate fleets.
To assess the impact of an additional levy, it’s better to start with a concrete usage scenario. Consider a driver who travels 15,000 kilometers per year in a car that consumes 7 liters per 100 kilometers, with fuel costing 2.20 euros per liter. Their annual expense amounts to about 2,100 euros.
With an electric vehicle consuming 18 kWh per 100 kilometers and electricity costing 0.20 euros per kWh, the same trips cost 540 euros. Even after adding a hypothetical tax of 500 euros per year, there would still be a little over 800 euros difference in favor of the electric vehicle.
But it’s enough to adjust the charging rate to get a very different result. At 0.60 euros per kWh (the average price found at public fast-charging stations), the electricity cost amounts to 1,620 euros. There is still some margin, but if an identical TICPE were applied, then the total cost of electricity would exceed that of heating. This explains why a new tax might seem bearable for a driver who charges at home during off-peak hours, but would be highly deterrent for those who rely on public charging stations. In a country obsessed with equalitarianism at all costs, this would be somewhat problematic.
That said, let’s remember that electricity is already heavily taxed, as these taxes together account for about 30% of the total bill amount...
Automakers in a Tight Spot
The issue seems particularly sensitive when it comes to trust. A family that switches to an electric vehicle because of a public campaign promoting electrification can reasonably expect some level of recognition. Even a modest contribution, if presented without a timeline or explanation, can be enough to fuel suspicion. Nothing convinces the most skeptical to keep their current internal combustion engine vehicle any longer.
And then there are also the automakers, caught between their environmental regulatory obligations under the CAFE law and market demands. It’s tough to explain to them that they need to sell electric cars to avoid financial penalties, but at the same time a tax will be imposed on electric cars for their customers, causing them to buy fewer electric cars. It’s crazy, isn’t it?
We must avoid confusing the success of electric vehicles in new sales (35% of the market by 2026) with their actual share in the total current vehicle fleet (around 5%). Since revenue from fuels depends on the liters actually consumed by all vehicles, the gradual renewal of the fleet should theoretically give the government some time to introduce this new tax, and electric vehicle owners more time to benefit from the significant financial advantages of driving electric.
A lot of education will be needed
I don’t see anything scandalous about an electric car contributing to collective financing, since its occupants use public infrastructure and services just like all other drivers. However, a uniform toll would have a fairly obvious drawback. At 500 euros per year, it would amount to 10 cents per kilometer for someone who drives 5,000 kilometers, compared to less than 1.7 cents for someone who drives 30,000 kilometers. From this perspective, a fee based on actual usage would seem more equitable.
In the absence of such consistency, a new tax would easily reinforce the image of a state that is bloated and parasitic, unable to reform itself or find real savings through wasteful use of public funds, but capable of finding additional revenue in every change it itself has encouraged—or rather, imposed.
Still, I don’t see why a driver should give up on an electric vehicle suited to their needs today just because it might face higher taxes in the future. The savings already achieved will remain, and the convenience of using such a vehicle won’t vanish with an additional tax category. On the other hand, those who are still hesitating need to know what to expect. Before asking them for more contributions, the government would do well to offer something that is almost as valuable as a purchase subsidy: rules they can reasonably rely on.
And then again, not everyone chooses their new car based solely on financial considerations. Ah, I’m told it is. What about environmental factors? Ah, I’m told those don’t matter.