10 great cars to have on salary sacrifice in 2026

The appetite for electric cars (EVs) is really taking off now, and under salary sacrifice (often shortened to salsac) you can drive a brand new EV far cheaper than if you were to lease the same car privately yourself.

According to the industry association the BVRLA, the number of vehicles supplied on salary sacrifice arrangements almost doubled between 2024 and 2025. The growing number of lower priced EVs has extended the affordability of salary sacrifice schemes and there are rising numbers of 20% tax payers who are driving electric for the first time.

It’s all to do with tax breaks that reduce the cost to you.

Each month, you ‘sacrifice’ part of your gross salary (so you pay less tax and National Insurance overall) and with that amount your employer leases a car on your behalf, which includes all the running costs (bar the electricity).

As the car is company-provided, there is a tax to pay on the benefit, but don’t worry. Electric cars are a win-win because, with zero emissions, for 2025/26 they sit in the lowest 3% benefit in kind tax band and this will only rise by one point for the next three years. For example, the good value MG IM5 Long Range model will cost a 20% tax payer just £22.50 per month, or for those in the 40% tax banding the cost will be £45 a month (based on the current tax year 2025/26).

So the addition of a minor company car tax bill is small in comparison to the tax savings of sacrificing salary for an electric car.

If you are interested and want to read more on salary sacrifice, head over to our salary sacrifice scheme for EVs page.

Electric Car Grant stimulates greater interest in EVs

Announced in July 2025, the Government’s Electric Car Grant generated major interest in fleet, salary sacrifice and privately acquired EVs with up to £3,750 off the list price. Funding is available until the 2028/29 financial year, or until the fund is exhausted. These price reductions should filter through as reduced monthly rental rates. Many manufacturers whose cars were not eligible for the grant have lowered their prices to match the Electric Car Grant.

In 2025 the fleet choice lists swelled even further with new names from Chinese manufacturers, alongside more established brands such as MG and BYD, in broadening the choice of electric cars. XPeng, Chery and Changan went on sale in Britain during 2025, with more new brands to follow in 2026.

Salary sacrifice choosers are latching onto these newcomers as they offer great value prices (so lower lease costs), the latest technology and are loaded with standard equipment which others leave on the options list.

But which EV should you choose as your salary sacrifice car? We’ve picked out 10 of the latest models for you to consider.

Budget 2025 update – what’s changed for EV salary sacrifice?

In the 2025 Budget the Government confirmed that, from April 2028, electric and plug-in hybrid cars will move onto a simple pay-per-mile road charge. For a typical EV driver this works out at around £255 a year – roughly half what an equivalent petrol or diesel driver pays in fuel duty. Crucially, Benefit-in-Kind (BiK) tax on electric company cars remains far lower than on conventional vehicles, and from April 2026 the “luxury car” threshold for EVs rises from £40,000 to £50,000, so many popular models will avoid that surcharge altogether. Combined with extra funding for the Electric Car Grant (now running to 2030), EVs remain one of the most cost-effective options for salary sacrifice, with low tax, competitive rentals and very low running costs.

How we work out your salary sacrifice and your savings

Your net salary sacrifice is what the car will cost you after deduction of the rental, the benefit in kind tax and the tax and National Insurance savings you make on the reduced salary. We then calculate the savings available by comparing the net cost of salary sacrifice against leasing the car personally (Personal Contract Hire – PCH) on a like-for-like basis. There’s usually such a significant saving that it allows you to drive a far more desirable EV than you ever imagined.

Quotations are based on 3 years/10,000 miles pa on a 1+35 profile for a 45% taxpayer. All information correct as of December 2025.

BMW iX3 Neue Klasse

Range: up to 500 miles
Salary sacrifice net: £688
Equivalent PCH monthly cost: £1,204
Monthly cost saving: £515

Arriving in the UK in 2026, the BMW iX3 electric SUV is the first of BMW’s Neue Klasse models (meaning new class after the new cars which changed the company’s fortunes in the 1960s) and is a real game-changer in looks and technology. A new electric 3 Series comes next.

There’s an incredible potential range from new designs of electric motors and batteries in the new platform, and the top spec battery has a huge capacity, offering up to 500 miles on a charge. The iX3 has an 800-volt electrical system, which used to only be on super-luxury EVs but is now more common on more mainstream cars. This means faster charging times when using ultra-rapid chargers and BMW claims that the new ix3 can take on up to 231 miles of range in 10 minutes.

The interior oozes modern design with choices of trim such as vegan leather or cloth seats. The dashboard has a central touchscreen but also a strip of information which runs the entire width of the car at the bottom of the windscreen, so is always in the line of vision without the driver having to look away.

BYD SEAL 230kW Design 83kWh 4dr Auto

Range: 354 miles
Salary sacrifice net: £475
Equivalent PCH monthly cost: £783
Monthly cost saving: £308

BYD’s sales are soaring in the UK and the aerodynamic Seal has become a familiar sight on our roads, a four-door rival for the Tesla Model 3 with a conventional boot.

There’s a panoramic glass roof as standard which you can dim at the touch of a button and a luxurious interior which majors on legroom. The single motor Design model here claims a very competitive 354-mile maximum range, and the other Excellence version with two motors for four-wheel drive, 324 miles.

In 2024 Chinese-market Seals had an upgraded 800-volt electrical system, reducing charging times by a claimed 30%, a new dashboard design and an improved semi-autonomous driving function. These improvements should head here in 2026.

Honda 0 Series SUV

Range: 300+ miles
Salary sacrifice net: tbc
Equivalent PCH monthly cost: tbc
Monthly cost saving: tbc

After a slow start in the EV market, Honda has a new generation of electric cars coming with radical looks. They start from scratch, electric-only, hence the zero in the name. However, the names will change for production.

There will be an amazing looking low saloon car, but first the five-seat mid-size SUV pictured here as a prototype will be built in America and goes on sale in the UK in summer 2026. Size-wise it’s against the Tesla Model Y and Kia EV6. It’s designed to maximise interior space (the batteries are thinner than other designs). The boxy area at the top of the tailgate has two storage compartments which double as mini tables. Its technology is ready for autonomous hands-free driving where it’s allowed by law.

Kia EV4 Hatch Long Range

Range: 391 miles
Salary sacrifice net: £440
Equivalent PCH monthly cost: £757
Monthly cost saving: £316

The striking new Kia EV4 comes in two choices of body style. The first is a family hatchback, built for Europe in Slovakia, and a rival for the Cupra Born, Renault Megane and Volkswagen ID. 3. The other bodystyle is a longer booted saloon built in Korea – a rival to the Tesla Model 3. There’s no mistaking that the EV4 is part of the Kia EV family

Both cars have a single electric motor with short and long range versions – the latter offering a claimed 391 miles on a single charge. Later, there’ll be a fast GT with two motors. Rapid charging is possible with 31 minutes to go from 10-80% charge.

With a long space between the wheels the EV4 is big on rear legroom. For working on the move, the centre console becomes a table for coffee cups or a laptop.

Mercedes-Benz CLA 250+ with EQ Technology

Range: 484 miles
Salary sacrifice net: £583
Equivalent PCH monthly cost: £1,027
Monthly cost saving: £444

The all-new Mercedes CLA arrived in the UK mid-2025, for the first time as an EV, and everybody is talking about its range. It looks a lot like the old petrol-powered CLA saloon and doesn’t shout about being electric, and there will also be a hybrid version if you want part-time electric.

By condensing some of the technology from the company’s limousine EQS, with an 800-volt electric system and new battery chemistries the maximum claimed range for the CLA 250+ with EQ Technology is up to 484 miles, and it’s designed so that motorway cruising doesn’t wipe out that advantage. When you do stop for a break, it can recharge up to 186 miles within 10 minutes.

Its new AI-enhanced computer system can take updates from the cloud and when you talk to the MBUX Virtual Assistant, it even has short-term memory! But what you’ll most remember is the amazing range of this new electric saloon from Mercedes.

MG IM5 Long Range

Range: 441 miles
Salary sacrifice net: £517
Equivalent PCH monthly cost: £879
Monthly cost saving: £361

MG has made a new name for itself and a lot of sales from good value SUVs and the distinctive MG4 EV. But now it’s moving into the executive car market with the IM5, a big hatchback.

The top 742 bhp Performance version has power which was once only for supercars (and some Teslas) but more people will find features like self-parking more useful. It’s a long car but turning in tight spaces is helped by rear wheels which assist with a bit of steering.

The MG IM5 Long Range can travel up to 441 miles on a single charge with the 100 kWh battery option while the 800V system means it can use the fastest public chargers. There’s all the equipment you could want and the only choices are the exterior and interior colours.

Nissan Leaf 75kWh

Range: 386 miles
Salary sacrifice net: £512
Equivalent PCH monthly cost: £936
Monthly cost saving: £426

If you want an electric car that’s proudly built in Britain, the new Nissan Leaf is the one. And that means that it will most likely qualify for the full Electric Car Grant of £3,750 which could translate to lower leasing prices. Deliveries begin in 2026.

The new look majors on aerodynamic efficiency, has more of a higher-riding crossover stance yet is slightly shorter than the old Leaf. One practical feature is a boot floor which can be set up to stop shopping bags rolling and Nissan’s signature curry hooks!

The two battery options give potential ranges of 271 or 386 miles – high for this class of car. Nissan says that the 75kwh version will do 211 miles at 70mph on the motorway and over an eight-hour day with two 30-minute charging stops around 497 miles is possible.

Polestar 4 200kW 100kWh Long Range Single Motor Plus 5dr Auto

Range: 385 miles
Salary sacrifice net: £536
Equivalent PCH monthly cost: £852
Monthly cost saving: £316

The Polestar 4 is a premium ‘performance SUV’ with a coupé look towards the rear but with four doors and the raised driving position many people enjoy. The talking point is that there’s no rear window.

For seeing backwards, the Polestar 4 relies on a camera for rear vision perched on the rooftop which feeds to an interior camera. So, no matter who sits across the rear seat, you get a clear view of the road behind and the rear seats recline. The boot’s big as a result.

Either a single motor/102kWh battery pack produces 268bhp or a dual motor with the same battery provides 536bhp. The Polestar 4 has prices to compete with the likes of the Porsche Macan EV.

Renault Scenic E-Tech 160kW Techno 60kWh Comfort Range 5dr Auto

Range: 260 miles
Salary sacrifice net: £390
Equivalent PCH monthly cost: £636
Monthly cost saving: £246

The new Renault 5 EV may be taking all the attention at Renault, but the Scenic E-Tech had an update in 2025 adding the latest tech, and a lower price for the starter model, the Techno trim.

The Scenic used to be an MPV – remember those? While it’s now more SUV, it still has some family-friendly interior tricks such as a rear centre armrest with cupholder arms and slots that can hold a tablet for watching videos. There’s a deep underfloor storage box for charging cables.

The batteries come in 60kWh and 87kWh sizes depending on budget and desired range required, but the Scenic does have a heat pump as standard, which increases battery efficiency, especially in cold weather. All Scenics have a V2L (vehicle-to-load) adaptor which allows external 230V devices to be powered by the car’s battery – anything from a laptop to a coffee machine.

Tesla Model Y Long Range AWD 5dr Auto

Range: 372 miles
Salary sacrifice net: £630
Equivalent PCH monthly cost: £1,103
Monthly cost saving: £473

We first saw the massively popular Tesla Model Y in 2022 and in autumn 2025 a new version arrived with a major revamp from front to back. You’ll recognise it by the super slim front and rear lights, which make it more aerodynamically efficient. Choose from two or four-wheel drive for 387 or 372 miles in Long Range versions, including a lower-priced Standard model.

The interior trim has been improved to make it feel plusher – there’s fabric instead of wood on the dashboard – and the cabin is quieter thanks to sound-deadening measures such as thicker glass and a new design of tyre. Tesla has also addressed one of the old car’s biggest faults, its bumpy ride. As before, storage space is excellent.

People in the back seats have their own screen to change the heating and you can even watch Netflix through it.