The Driver and Vehicle Standards Licensing Agency (DVLA) has announced the first-year car tax rates for vehicles registered on or after April 1, 2026. According to reports from Express.co.uk, the DVLA has published a confirmed list of 'first licence rates' for vehicle tax, which will apply to petrol and diesel cars based on their CO2 emissions.
New Tax Brackets for Petrol Cars
The 'first licence rate' bands range from £10 for the lowest-emission vehicles to £5,690 for the highest. Government data shows that average CO2 emissions for new petrol cars in the UK since 2022 are approximately 168.5g/km, placing them in the 151-170g/km bracket. For this bracket, the DVLA has set the first-year vehicle tax at £1,410 for cars registered on or after April 1, 2026.
Standard Rate Increase
After the first year, all petrol cars registered since April 1, 2017, fall into a standard rate. From April 2026, this standard rate has increased from £195 to £200 per year, regardless of emissions. Those paying by instalments will see a total of £210. Older cars registered between March 2001 and April 2017 in the same emissions bracket (166-175g/km) will cost £325.
Breakdown experts the RAC explained: "From April 1, 2026, the standard tax rate for all petrol, diesel or hybrid cars registered after April 1, 2017 rises to £200. If you pay for six months tax, it'll cost £110, or £105 if you opt to set up a direct debit. If you pay in 12 monthly instalments your total car tax cost will be £210."
Luxury Car Tax and Electric Vehicles
Vehicles with a list price exceeding £40,000 (or £50,000 for electric cars) will be subject to an additional 'luxury car tax' fee of £440, bringing the annual VED costs to £640. Electric cars no longer qualify for free road tax; from April 2026, drivers of electric cars under a year old will start paying the £200-a-year flat rate.
Siobhan Doyle, a consumer writer at Carwow, commented: "2026 is a big year for drivers because so many changes touch everyday life, from what you pay to how closely rules are enforced. Some updates are already in place, like the congestion charge increase in London, while others land later in the year, including fuel duty changes and Euro 7 rules. There are also road safety measures being discussed, but drivers should treat those as proposals until anything is confirmed. The simplest way to stay on the right side of the rules is to keep the basics watertight. Make sure your licence details are up to date and set reminders for your MOT, tax and insurance, because enforcement is becoming more automated and it’s easier than ever to get caught out."
