Salary sacrifice car calculator UK
Estimate the net monthly cost of a fully electric (EV) salary sacrifice car scheme after Income Tax, employee National Insurance and 2026/27 Benefit-in-Kind tax.
Free independent EV calculator · 2026/27
Calculate your EV salary sacrifice cost
This electric car salary sacrifice calculator uses the gross salary reduction and P11D value from your employer or provider illustration to estimate the change in monthly take-home pay.
1. Salary and tax
Use contractual pay before salary sacrifice.
£75,000 a year
1257L represents the standard £12,570 Personal Allowance before any statutory taper.
2. Car quote
Copy the figures from the illustration.
£800.00 of gross pay each month
Used with the 4% fully electric car BIK rate
3. Estimated result
Guidance using 2026/27 rates and rest of UK Income Tax.
Estimated net monthly cost
£530.67
- Gross salary sacrifice
- £800.00
- Income Tax saving
- -£320.00
- Employee NI saving
- -£16.00
- EV BIK tax
- +£66.67
Estimate only. It excludes pension, student loan, benefits, bonus, payroll rounding and provider-specific package terms.
What this EV salary sacrifice car calculator includes
It is designed for UK employees sense-checking a fully electric car salary sacrifice scheme before they commit. The estimate combines the main payroll and company-car-tax effects rather than showing only the gross deduction.
- Gross monthly salary sacrifice from the employer or provider quote.
- Estimated Income Tax and employee National Insurance savings.
- The 2026/27 4% BIK rate for a fully electric car.
- England, Wales and Northern Ireland, plus separate Scottish Income Tax bands.
- Common cumulative tax-code adjustments and the Personal Allowance taper.
Use the right calculator
If you only need company car tax, or your car is a plug-in hybrid, petrol or diesel model, use the dedicated BIK calculator instead. If you are still choosing a vehicle, browse the salary sacrifice car guides first.
How a salary sacrifice car calculation works
A salary sacrifice car reduces contractual gross cash pay. The employee normally pays less Income Tax and employee National Insurance on that reduction, but pays company car tax on the vehicle benefit. The calculator subtracts the estimated tax and NI savings from the gross sacrifice, then adds the marginal BIK tax.
Salary sacrifice car tax and BIK
For a zero-emission company car, the taxable benefit is 4% of the P11D value in 2026/27. The tax paid depends on where that extra taxable benefit falls across the employee's Income Tax bands. This calculator uses that marginal calculation rather than applying a single headline rate.
Worked salary sacrifice car example
With a gross salary of £75,000, a £800 monthly sacrifice and a £50,000 P11D value, the estimated monthly Income Tax saving is £320.00 and employee NI saving is £16.00. The annual taxable car benefit is £2,000, producing estimated BIK tax of £66.67 a month. The resulting estimated net monthly cost is £530.67.
UK regions, tax codes and the Personal Allowance
England, Wales and Northern Ireland use the rest-of-UK Income Tax bands in this calculator. Scottish taxpayers have different Income Tax bands. An S prefix selects those Scottish bands, while a C prefix uses the rest-of-UK calculation for Welsh taxpayers. Common cumulative codes are supported. Payroll-specific BR, D0, D1, NT, K, Week 1, Month 1 and emergency codes need an individual payroll calculation.
The Personal Allowance normally tapers by £1 for every £2 of adjusted net income above £100,000. Salary sacrifice can therefore restore part of the allowance in some cases, which is included in this estimate.
Methodology and limitations
Rates are fixed to 2026/27 so tax bands, NI thresholds, copy and the BIK assumption stay aligned. This page fixes BIK at 4% for a fully electric car; use the company car BIK calculator for plug-in hybrid, petrol or diesel cars. The calculation models monthly pay and employee deductions only. It does not model employer NI, Optional Remuneration Arrangement exceptions, pensionable pay, statutory payments or National Minimum Wage compliance.
Check current official guidance on company car tax rates and tax codes before making a decision.
For employers reviewing a car benefit programme
Employee cost is only one part of a programme decision. Review provider pricing, contracts, payroll, early termination protection, governance, policy, employee communications and employer National Insurance before launch or renewal.
Salary sacrifice car calculator FAQs
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