Chancellor Rachel Reeves has confirmed the 2026/27 vehicle tax rates, which could see drivers of older cars paying up to £790 annually. Cars manufactured between 2001 and 2017 are subject to a sliding scale of charges based on CO2 emissions, with Band J vehicles (186-200g/km) costing £410.
Tax Bands and Charges
The tax bands range from A to M, with charges varying from £20 for the cleanest vehicles (under 100g/km) to £790 for the highest emitters. Drivers are advised to check their vehicle's emissions band before purchasing an older car, as rates can surge significantly.
For example, a car in Band J (186-200g/km) will incur a £410 annual charge. Even vehicles emitting under 100g/km now face a £20 charge, as the zero-rate band has been removed.
Expert Commentary
Andy Wood, tax expert at Tax Barrister UK, said: “A lot of drivers still assume road tax is calculated purely on the age of the vehicle, but emissions remain one of the biggest factors in determining how much motorists pay. Even relatively modest differences in CO2 output can place vehicles into entirely different tax bands, which can have a noticeable impact on annual running costs.”
Wood added: “The removal of the zero-rate band for cars emitting under 100g/km has caught some drivers off guard because many had become used to paying nothing at all.”
Impact on Drivers
Drivers with older cars are being urged to research tax charges before buying, as the cost can vary dramatically. The Treasury has set out the latest rates, which apply to vehicles made between 2001 and 2017. Choosing a vehicle with lower emissions can result in significant savings.
