Rachel Reeves has confirmed an eye-watering £2,270 new charge as part of the Vehicle Excise Duty (VED) tax bands for drivers this year. Tax bands for cars manufactured after April 2017 are structured across 13 different levels.
Tax Band Details
The 10th band, applicable to cars emitting between 171 and 190 g/km of CO2, will require motorists to pay £2,270. The top three rates are set at £3,420, £4,850, and £5,690 respectively.
These changes were announced by the Labour Party Chancellor in the Autumn Budget of the previous year. The RAC explains: "The changes only affect cars first registered after April 2017 and were introduced in direct response to falling CO2 emissions levels, meaning many motorists in the UK were paying little or no VED. This cost the Treasury millions of pounds in lost revenue, prompting the Government to make important changes to the way road tax is calculated."
Applicability and Exceptions
The standard first-year rate applies to petrol cars, most modern diesel cars that meet RDE2 emissions standards, hybrids, and electric vehicles. Diesel cars that do not meet RDE2 standards are subject to a higher first-year rate in most bands. The figures provided are based on official GOV.UK vehicle tax tables for the 2025/26 and 2026/27 tax years.
The first-year showroom tax must be paid upfront, with no option to spread the cost into monthly or twice-annual payments.
Expert Commentary
Richard Evans, Head of Technical Service at webuyanycar, said: "The DVLA's confirmed first-year VED rates for 2026/27 continue to strongly favour low-emission cars, with new EVs attracting just £10 in showroom tax, while models in the highest CO₂ emission band now face up to £5,690. The system remains highly progressive, with sharp increases at the top end. Notably, choosing a version of the same car that falls just below the 255g/km threshold could save buyers around £840 in first-year tax alone, highlighting how even small differences in emissions can have a significant cost impact!"
