Millions of drivers across the United Kingdom are set to be impacted by a car tax increase that takes effect from next week. Vehicle Excise Duty, commonly known as car tax or road tax, is a mandatory fee for most motorists to legally operate their vehicles on public roads.
Understanding the Vehicle Excise Duty Changes
The amount payable for road tax primarily depends on three key factors: the date the car was first registered, the type of fuel it uses, and the level of tailpipe CO2 emissions it produces. This structured approach aims to incentivise environmentally friendly vehicles while generating revenue for transport infrastructure.
First-Year Car Tax Rates for New Vehicles
When purchasing a new car, owners must pay what is often referred to as the showroom tax for the initial year. From April 2026, these first-year rates will see adjustments across various emission bands.
For vehicles emitting between 1-50g/km of CO2, the first-year car tax rate will increase from £110 to £115. In contrast, cars producing over 255g/km of CO2 will face a rise from £5,490 to £5,690. Notably, new electric vehicles with zero emissions maintain their first-year rate at £10, unchanged from previous levels.
It is crucial to remember that these rates apply exclusively during the first year of ownership. From the second year onward, drivers transition to the standard car tax rate, which is also increasing from £195 to £200.
Detailed First-Year Car Tax Rates from April 2026
- 0g/km – £10 (no change)
- 1-50g/km – £115
- 51-75g/km – £135
- 76-90g/km – £280
- 91-100g/km – £365
- 101-110g/km – £405
- 111-130g/km – £455
- 131-150g/km – £560
- 151-170g/km – £1,410
- 171-190g/km – £2,270
- 191-225g/km – £3,420
- 226-255g/km – £4,850
- 255+g/km – £5,690
Tax Rates for Older Vehicles
For cars registered between 1 March 2001 and 31 March 2017, the vehicle tax rates are divided into distinct CO2 bands. The principle remains consistent: lower tailpipe emissions correspond to lower tax obligations.
Car Tax from April 2026 for Vehicles Registered 2001-2017
- Up to 100g/km – £20 (no change)
- 101-110g/km – £20 (no change)
- 111-120g/km – £35 (no change)
- 121-130g/km – £170
- 131-140g/km – £200
- 141-150g/km – £225
- 151-165g/km – £275
- 166-175g/km – £325
- 176-185g/km – £360
- 186-200g/km – £410
- 201-225g/km – £445
- 226-255g/km – £760
- 255+g/km – £790
Essential Requirements for Taxing a Vehicle
To legally tax a vehicle, motorists must ensure they have suitable car insurance coverage in place. Additionally, if the vehicle is over three years old (or four years in Northern Ireland), a valid MOT certificate is mandatory. These prerequisites help maintain road safety standards and compliance with regulatory frameworks.
The upcoming changes underscore the government's ongoing adjustments to Vehicle Excise Duty, reflecting broader environmental and fiscal policies. Drivers are advised to review their specific vehicle details to understand their new tax liabilities accurately.
