Drivers will pay the charge based on how many miles they drive from April 2028.
Motorists will have their mileage checked annually, typically during their MOT as is already the case, or for new cars, around their first and second registration anniversary, the Treasury said.
Payment will be integrated into the existing Vehicle Excise Duty system.
Under the measures, an electric car driver clocking up 8,500 miles in the 2028-29 financial year is expected to pay about £255 – about half the cost per mile that petrol and diesel drivers pay in fuel tax.
However, mileage readings will be based on in-vehicle odometers, which the government acknowledges can be subject to tampering, or “clocking”.
It recognises that the introduction of the tax “may increase the likelihood of motorists choosing to clock their vehicles”, and said it was looking at ways to mitigate this.
The government is now consulting on exactly how the scheme will work.