April 2026 Car Tax Rates Announced with Significant Increases
Vehicle Excise Duty (VED) rates are set to rise from April 1, 2026, impacting most drivers across the UK. New figures reveal that some motorists could face charges as high as £5,690, marking a substantial increase in motoring costs.
Key Changes to Car Tax from April 2026
According to analysis from Confused.com, the standard annual rate for most new petrol and diesel cars beyond the first year will climb to £200, up from £195 in the 2025/26 period. Zero-emission vehicles, such as electric cars, will pay £10 in the first year, then £200 thereafter.
The cost of the first year's tax for all vehicles has increased, with the top band, determined by CO2 emissions, rising by £200 to an eye-watering £5,690. High-value cars costing more than £40,000 will incur an additional supplement for up to five years.
First-Year Tax Rates Based on CO2 Emissions
All cars are subject to the first-year rate when purchased new, with the tax amount directly linked to CO2 emissions. The more a vehicle pollutes, the higher the tax rate. Below are the 2026/27 rates for petrol, diesel, alternative fuel, and zero-emission cars registered on or after April 1, 2026:
- 0 g/km: £10
- 1-50 g/km: £115
- 51-75 g/km: £135
- 76-90 g/km: £280
- 91-100 g/km: £365
- 101-110 g/km: £405
- 111-130 g/km: £455
- 131-150 g/km: £560
- 151-170 g/km: £1,410
- 171-190 g/km: £2,270
- 191-225 g/km: £3,420
- 226-255 g/km: £4,850
- 256+ g/km: £5,690
Note that prices may differ for diesel cars tested to RDE standards. After the first year, vehicles move to the annual standard rates.
Annual Standard Rates After the First Year
Most vehicles are subject to the standard rate from their second year, which will be £200 from April 1, 2026. Cars with a price tag exceeding £40,000 incur an additional supplement for the initial five years, currently set at £440. For zero-emission (electric) cars, this threshold rises to £50,000 from April 1, 2026.
Tax Costs for Vehicles Registered Before April 2017
Vehicles registered between March 1, 2001, and April 1, 2017, have their Vehicle Excise Duty determined by CO2 emissions. The rates for 2026/27 are as follows:
- Band A (up to 100 g/km): £20
- Band B (101-110 g/km): £20
- Band C (111-120 g/km): £35
- Band D (121-130 g/km): £170
- Band E (131-140 g/km): £200
- Band F (141-150 g/km): £225
- Band G (151-165 g/km): £275
- Band H (166-175 g/km): £325
- Band I (176-185 g/km): £360
- Band J (186-200 g/km): £410
- Band K (201-225 g/km): £445
- Band L (226-255 g/km): £760
- Band M (over 255 g/km): £790
Band K includes cars with a CO2 figure over 225g/km but registered before March 23, 2006. These changes highlight the ongoing shift towards higher taxes for more polluting vehicles, encouraging drivers to consider greener options.
