Drivers over the age of 70 are among those facing increased car tax fees in 2026, following the latest rise in Vehicle Excise Duty (VED) introduced by the Labour Party government and HM Treasury. The new charges, which took effect two months ago, have impacted nearly all vehicle categories.
Standard VED Increases
Petrol and diesel cars registered after 2017 have seen the standard VED price rise from £195 to £200 per year as of April. Brand new combustion cars in their first year on the road face even steeper costs, with first-year fees rising by up to £200, bringing the total to an eye-watering £5,690 per year.
First-Year Tax Doubled
Drivers have been warned that first-year tax fees have been doubled, jumping from £2,745 to £5,490 for the 2025/26 tax year. Vehicles registered between 2001 and 2017 pay rates based on emissions, with the highest-polluting cars emitting over 255g/km of CO2 now charged up to £790 annually under VED band rules.
Older Vehicles and Modern Classics
Prices have also risen for cars registered before 2001, with modern classics paying up to £15 more to drive since the start of the new tax year. Electric vehicle owners are also affected, as EVs now pay the £200 standard charge. However, the Expensive Car Supplement thresholds have been adjusted, rising from £40,000 to £50,000.
Expensive Car Supplement Changes
Vehicles exceeding the £50,000 list price will now pay £440 on top of their current tax fees, up from £425 per year, under HM Treasury rules. The only exemptions apply to cars registered more than 40 years ago, which qualify for historic tax exemption. This means vehicles built before 1986 do not need to pay VED to use the roads.
