Electric car salary sacrifice remains one of the most cost-effective ways to drive a new EV in the 2026/27 tax year.
Under an EV salary sacrifice scheme, you give up part of your gross salary in exchange for a new electric car supplied through your employer. Because the deduction is taken before income tax and National Insurance, the monthly cost can be significantly lower than leasing the same car privately.
There is still Benefit-in-Kind (BIK) tax to pay because the car is treated as a company-provided benefit. However, fully electric cars sit in the 4% BIK band for 2026/27, which means the tax charge remains very low compared with petrol, diesel and many plug-in hybrid cars.
That combination – income tax and National Insurance savings, low EV company car tax, and fixed monthly motoring costs – is why salary sacrifice continues to be such an attractive route into electric driving.
It also helps that the choice of EVs has never been stronger. For 2026/27, salary sacrifice drivers can choose from affordable electric hatchbacks, family SUVs, long-range saloons and premium models from established and newer brands.
So, which EV should you choose as your next salary sacrifice car? We’ve picked out 10 of the best electric cars to consider in 2026/27, including models such as the Renault 5, Ford Explorer, Tesla Model 3, Tesla Model Y and BYD Sealion 7
For most drivers, the strongest salary sacrifice savings are still found on fully electric cars. That’s because EVs combine low Benefit-in-Kind tax with the income tax and National Insurance savings created by sacrificing part of your gross salary.
The 2026/27 BIK rate for fully electric cars is 4%, rising to 5% in 2027/28. Even with future increases already confirmed, EV company car tax remains much lower than for most petrol, diesel and plug-in hybrid alternatives.
A salary sacrifice EV can also simplify motoring costs. Depending on the scheme, the monthly deduction may include the lease, servicing, maintenance, tyres, breakdown cover and insurance, leaving electricity as the main running cost to manage.
Here’s our top 10 for 2026/27, based on the electric cars proving most popular with thousands of Fleet Alliance salary sacrifice drivers and customers this year and a compelling mix of value, range, practicality and low company car tax.
The Jaecoo E5 has emerged as the standout success story in our salary sacrifice rankings, claiming the number one spot in most weeks and generating the strongest overall demand. With a WLTP range of around 250 miles, it combines distinctive SUV styling, generous equipment levels and strong value for money. Its blend of affordability, practicality and fresh design has clearly struck a chord with drivers seeking an accessible route into electric motoring.
Salary sacrifice net: £356
Monthly saving: £195
The Ford Explorer has become one of the most dependable performers in our salary sacrifice top 10, consistently challenging for second and third place while maintaining remarkably stable demand month after month. With up to 374 miles of WLTP range from the Extended Range model, it offers the sort of real-world usability drivers value. Spacious, comfortable and easy to live with, it strikes an impressive balance between family-friendly practicality, long-distance capability and everyday efficiency.
Salary sacrifice net: £430
Monthly saving: £217
The Tesla Model Y remains one of the defining electric vehicles of the modern era and a long-term volume leader in our salary sacrifice scheme. Consistently ranking within the top three or four positions, it enjoys strong popularity with both corporate fleets and employees. Offering up to 387 miles of WLTP range, depending on version, the Model Y combines impressive efficiency, class-leading charging infrastructure and family-friendly practicality in a package that continues to set the benchmark.
Salary sacrifice net: £605
Monthly saving: £319
The Tesla Model 3 continues to be one of the most influential electric cars on the road, maintaining a steady high-volume presence in our most popular salary sacrifice cars. Rarely absent from the top five and remarkably consistent week after week, it remains a favourite among company car drivers. With up to 436 miles of WLTP range in Long Range form, the Model 3 combines impressive efficiency, sharp performance and access to Tesla’s extensive Supercharger network.
Salary sacrifice net: £517
Monthly saving: £271
The Renault 5 E-Tech has quickly become one of the fastest-rising stars in our salary sacrifice popularity list, combining a consistent presence with regular appearances in the top five to seven positions. Benefiting from a strong “EV adoption” effect, it has captured drivers’ imaginations with its retro-inspired styling and modern technology. Offering up to 252 miles of WLTP range, the Renault 5 proves that affordable electric motoring can still be packed with character and desirability.
Salary sacrifice net: £360
Monthly saving: £198
The Porsche Macan Electric is the premium standout performer in our salary sacrifice league table, delivering remarkably stable demand despite its premium price tag. It combines Porsche’s trademark handling precision with everyday SUV practicality. Offering up to 398 miles of WLTP range, depending on model, the Macan Electric demonstrates how desirable premium EVs have become, blending sports-car performance, cutting-edge technology and long-distance usability in a genuinely compelling package.
Salary sacrifice net: £764
Monthly saving: £395
The Kia EV5 has established itself as a dependable mainstay of our salary sacrifice rankings, combining a consistent top-10 presence with strong fleet-friendly appeal. Positioned between mainstream and premium rivals, it offers impressive practicality, distinctive SUV styling and a high-quality cabin. With a WLTP range expected to be around 329 miles, the EV5 strikes an appealing balance between affordability and capability, making it a natural choice for drivers seeking a versatile family EV.
Salary sacrifice net: £502
Monthly saving: £266
The Renault Scenic E-Tech has quietly become one of the most dependable family EVs and among the most popular salary sacrifice vehicles, appearing almost every week and consistently attracting strong demand. A worthy winner of the 2024 European Car of the Year award, it takes the fight directly to rivals such as the Volkswagen ID.4 and Skoda Enyaq. With up to 379 miles of WLTP range, it combines impressive efficiency, family-friendly practicality and a refreshingly modern approach to electric motoring.
Salary sacrifice net: £446
Monthly saving: £238
The BYD Sealion 7 has emerged as one of the fastest-rising stars based on customer orders through our salary sacrifice scheme, evolving from an occasional contender into a consistent high-volume performer. Strong growth in recent months reflects growing confidence in BYD’s expanding UK presence. With up to 312 miles of WLTP range, the Sealion 7 blends sleek coupe-SUV styling, generous equipment and impressive value, making it an increasingly compelling alternative to established European rivals.
Salary sacrifice net: £471
Monthly saving: £233
The Polestar 4 has become one of the standout premium choices in our salary sacrifice top 10, maintaining a regular presence among discerning drivers. Its most talked-about feature is the complete removal of the rear window, replaced by a high-definition digital rear-view mirror that enhances rear passenger space. With up to 385 miles of WLTP range, the Polestar 4 combines striking design, impressive performance and Scandinavian minimalism in one of the market’s most distinctive premium EVs.
Salary sacrifice net: £650
Monthly saving: £342
The best salary sacrifice car is not always the one with the longest range, the lowest list price or the most premium badge. It is the one that fits your mileage, charging access, budget and lifestyle.
For some drivers, a compact EV such as the Renault 5 will offer the lowest monthly cost and more than enough range for everyday use. For others, a long-range saloon or SUV such as the Tesla Model 3, Tesla Model Y, Mercedes-Benz CLA, BYD Seal or Ford Explorer may be the better fit.
What all these cars have in common is that they are fully electric, which means they benefit from low company car tax. In the 2026/27 tax year, electric cars sit in the 4% Benefit-in-Kind band, helping salary sacrifice drivers keep their monthly costs highly competitive compared with many petrol, diesel and plug-in hybrid alternatives.
A salary sacrifice EV can also make budgeting simpler. Depending on your employer’s scheme, your monthly deduction may include the lease, servicing, maintenance, tyres, breakdown cover and insurance, leaving electricity as the main running cost to manage.
Fleet Alliance helps businesses and employees make the switch to electric driving through simple, cost-effective EV salary sacrifice schemes.
Whether you are an employer looking to offer salary sacrifice as an employee benefit, or a driver choosing your next electric car, our team can help you understand the options, compare costs and find a car that works for you.
Explore EV salary sacrifice – how the scheme works
Salary sacrifice for employers – benefits for businesses
Salary sacrifice for employees – savings for drivers
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