The example: Kia Sportage 1.6 T-GDi Hybrid 235, higher-rate taxpayer
List price £34,385, CO2 125 g/km. A self-charging hybrid has no plug-in range, so it uses the CO2 bands for petrol cars.
- BIK rate: 75 g/km starts at 21%, plus 1% per 5 g/km: 125 g/km → 31%.
- Benefit: £34,385 × 31% = £10,659.
- Tax at 40%: £4,264 a year, about £355 a month.
Side by side for a 40% taxpayer
| Tax year | Sportage Hybrid (BIK %) | Tax | EV3 electric (BIK %) | Tax |
|---|---|---|---|---|
| 2026/27 | 31% | £4,264 | 4% | £576 |
| 2027/28 | 31% | £4,264 | 5% | £720 |
| 2028/29 | 32% | £4,401 | 7% | £1,008 |
| 2029/30 | 33% | £4,539 | 9% | £1,296 |
| 2030/31 | 34% | £4,676 | 10% | £1,440 |
EV3 list price £35,990. Over these five years the hybrid costs about £17,100 more in tax at 40%.
And for a basic-rate taxpayer?
Halve the numbers: about £2,132 a year for the Sportage Hybrid against £288 for the EV3 in 2026/27.
Why hybrids are taxed like petrol cars
The BIK system looks at official CO2 and, only for cars between 1 and 50 g/km, at electric range. A self-charging hybrid or mild hybrid usually emits 90–140 g/km, so it falls in the 24%–34% area. Only plug-in hybrids (1–50 g/km) and fully electric cars get the low rates.
Other popular hybrids in 2026/27
| Model | CO2 | BIK % | Tax at 40% |
|---|---|---|---|
| Toyota Yaris 1.5 Hybrid | 91 g/km | 24% | £2,263 |
| Toyota Corolla 1.8 Hybrid | 100 g/km | 26% | £3,164 |
| Nissan Qashqai e-POWER 205 | 98 g/km | 25% | £3,397 |
| Nissan X-Trail e-POWER 204 | 129 g/km | 31% | £4,754 |
When a hybrid can still make sense
- You cannot charge at home or at work, and you do long motorway trips.
- The car is a pool car or a cash allowance is offered instead.
- Your employer covers costs that tip the balance — ask for the full comparison including any salary sacrifice.
Model figures (CO2, engine size, list price) come from the manufacturer’s own UK price list, as on the main calculator. Prices change often — check the current list price for your exact version.
What about the employer?
Your employer pays Class 1A National Insurance of 15% on the same benefit. For the Sportage Hybrid that is about £1,599 a year; for the EV3 it is about £216. That is one reason many companies now offer electric cars first. If you are choosing from a list, ask whether there is a cash alternative or a salary sacrifice option, as those can change the comparison.
FAQ
What is the BIK rate for a Kia Sportage Hybrid in 2026/27?
31% (125 g/km). On a £34,385 list price that is a £10,659 benefit and £4,264 tax a year at 40%.
How much is the Kia EV3 at 40%?
4% of £35,990 = £1,440 benefit, so about £576 a year in 2026/27.
Do self-charging hybrids get a lower BIK rate?
No. Only cars with 1–50 g/km (plug-in hybrids) and zero-emission cars get the low bands. Self-charging hybrids are taxed on CO2 like petrol cars.
Sources: GOV.UK “Check future rates for petrol-powered and hybrid-powered company cars” (updated 30 Sep 2026); HMRC policy papers on appropriate percentages 2028–2030 and 2030–2032 (28 Oct 2026); HMRC EIM24710 (PHEV easement); GOV.UK van and fuel benefit charges 2026/27; CIPP (2027/28 fuel multiplier £30,200). Checked 5 November 2026.