Car Tax Bands 2026: UK VED Rates and Changes Explained

What is Car Tax (VED) and Why Do You Pay It?

Vehicle Excise Duty, almost universally referred to as car tax or road tax, is a mandatory annual charge paid by drivers to keep a vehicle legally registered for use on UK public roads. It was introduced in 1937 and replaced an older system of road taxation dating back to the taxation of Hackney Carriages in the 17th century. The paper tax disc, introduced in 1921 and displayed in millions of windscreens for nearly a century, was abolished in 2014. Today, VED is managed entirely electronically through the DVLA. Each year the DVLA collects around £5 billion in VED revenue, though this goes into general government spending rather than being ring-fenced for road repairs.

How much you pay depends on when your car was first registered, the fuel type, the CO2 emissions, and in some cases the original list price. There is no single flat rate the system uses three distinct frameworks depending on a vehicle's registration date, which is why understanding the bands matters before you buy or renew.

Key Car Tax Figures for 2026 at a Glance

What Changed in April 2026?

Several important changes to the UK road tax system came into force on 1 April 2026, following the Chancellor's Autumn Budget announcement.

Standard rate increase. The annual standard rate for petrol, diesel and hybrid cars registered after April 2017 has risen from £195 to £200. If you pay monthly by Direct Debit the total annual cost is £210, reflecting the instalment surcharge.

Higher first-year rates across the board. First-year VED, sometimes called the showroom tax, has increased in line with inflation across all CO2 emission bands. The top band for cars emitting over 255g/km now stands at £5,690, up from previous years. Cars in the most common emission range for petrol cars (around 131 to 150g/km) now attract a first-year charge of £560.

EV luxury threshold rises to £50,000. Previously, any car with an original list price above £40,000 was subject to the Expensive Car Supplement of £440 per year for five years. From 1 April 2026, the threshold for zero-emission vehicles has risen to £50,000. Importantly, this change is retrospective it applies to any electric car registered on or after 1 April 2025, meaning EV owners who bought between April 2025 and March 2026 and paid the supplement on a car priced between £40,000 and £50,000 will now be refunded the overpaid amount.

Electric cars pay VED for the first time from this cycle. EVs registered after April 2017 now pay the £200 standard rate. Older EVs registered before April 2017 pay £20 per year. The era of free road tax for electric vehicles is over.

Pay-per-mile eVED confirmed for 2028. The Government has confirmed that from April 2028, electric and plug-in hybrid drivers will pay an additional per-mile charge alongside the standard VED rate. Under those plans, EV drivers will pay 3p per mile and plug-in hybrid drivers 1.5p per mile. The Government has stated that no tracking devices will be required in vehicles and that mileage will likely be verified at MOT test centres, though full operational details have not yet been published.

Car Tax Bands: Cars Registered After 1 April 2017

Cars first registered on or after 1 April 2017 pay a first-year rate based on CO2 emissions, followed by a flat standard rate from year two regardless of how clean or dirty the engine is. This system was introduced because falling CO2 figures under the previous scheme were costing the Treasury hundreds of millions in lost VED revenue. If your car's original list price exceeded £40,000 (or £50,000 for an EV from April 2026), the Expensive Car Supplement of £440 applies on top of the standard rate for five years, starting from the second year of registration.

Car Tax Bands: Cars Registered Between March 2001 and March 2017

If your car was first registered between 1 March 2001 and 31 March 2017, VED is calculated on CO2 emissions alone and split across thirteen bands from A to M. The lower the CO2, the lower the annual charge. Note that from April 2025, the lowest band no longer qualifies for free road tax even the cleanest cars in this group now pay at least £20 per year. The Expensive Car Supplement does not apply to vehicles in this registration bracket.

Car Tax Bands: Cars Registered Before 1 March 2001

Vehicles registered before 1 March 2001 predate the CO2 measurement system. VED for these cars is calculated on engine size alone, split into two categories. These vehicles are classified as Private/Light Goods (PLG) vehicles and the rates are straightforward.

Electric Cars and Road Tax in 2026

The rules for electric vehicle VED have changed significantly and the topic causes a good deal of confusion, so it is worth covering in detail. Prior to April 2025, zero-emission cars were completely exempt from VED. That exemption has now ended.

The current position for electric cars is as follows. A brand-new EV registered from April 2025 onwards pays a first-year rate of £10, then moves to the standard £200 annual rate from year two. An EV registered between April 2017 and March 2025 now pays the £200 standard rate. An EV registered before April 2017 pays £20 per year. The Expensive Car Supplement applies to EVs with an original list price above £50,000 from April 2026 (up from the previous £40,000 threshold for all cars), and this change is retrospective to EVs bought from 1 April 2025 onwards.

Looking further ahead, the Government has confirmed a pay-per-mile Electric Vehicle Excise Duty (eVED) system is planned for April 2028. Under this scheme, EV drivers will pay 3p per mile and plug-in hybrid drivers 1.5p per mile, in addition to the standard annual VED rate. The Government estimates that the average electric car driver covering 8,000 miles per year will pay an additional £240 annually under eVED. No GPS tracking will be required mileage is expected to be verified at MOT test centres, though the exact mechanism has not yet been finalised.

The Expensive Car Supplement Explained

The Expensive Car Supplement, frequently called the luxury car tax, is an additional annual VED charge that catches a significant number of buyers by surprise, particularly those purchasing used cars. It applies to any car with an original manufacturer's list price above £40,000 when new (or £50,000 for electric cars from April 2026). The supplement adds £440 per year on top of the standard £200 rate, bringing the total annual bill to £640 for five years starting from the second year of registration.

A critical point that many buyers miss: the threshold is based on the original list price when the car was new, not the price you paid for it. If you buy a second-hand car that originally listed for £42,000 and it is still within its five-year supplement window, you will pay the additional £440 regardless of the fact that you bought the car for £25,000. Always check whether the Expensive Car Supplement still applies before purchasing a used premium vehicle, as it can add over £2,000 to the cost of ownership during the remaining supplement period. Our free vehicle check shows the road tax cost for any UK-registered car enter the reg above to find out.

How is Car Tax Monitored?

The paper tax disc was abolished in October 2014, which means there is no longer any physical disc to display in your windscreen. VED compliance is now enforced entirely electronically. The police and other agencies operate a nationwide network of Automatic Number Plate Recognition (ANPR) cameras, located at roadsides and in patrol vehicles, which cross-reference every number plate they read against the DVLA's database in real time. An untaxed vehicle can be flagged and acted upon within seconds of passing a camera. Enforcement has become considerably more effective since the disc was abolished there is no longer any opportunity for a disc to be transferred between vehicles or forged.

What Happens if You Do Not Tax Your Car?

Driving or keeping an untaxed vehicle on a public road without a valid SORN (Statutory Off Road Notification) in place is an offence. The initial penalty is a Late Licensing Penalty letter carrying an £80 fine, reduced to £40 if paid within 33 days. If the penalty goes unpaid, the case is passed to a debt collection agency. If the matter reaches a magistrates' court, the maximum penalty is £1,000 or five times the outstanding tax owed, whichever is greater. This rises to £2,500 if an untaxed vehicle is being kept or used on a public road while a SORN is declared.

Your vehicle can also be clamped on the spot. A £100 release fee is payable within the first 24 hours, rising to £200 if the vehicle is impounded. Once impounded, a £21-per-day storage fee begins accruing. If an abandoned untaxed vehicle is not claimed within 7 to 14 days, it may be crushed, auctioned, or broken for parts. If you want to keep a car off the road without taxing it, you must declare a SORN with the DVLA first.

When and How to Pay Your Car Tax

Road tax can be paid for 6 or 12 months at a time, or via monthly Direct Debit instalments though the Direct Debit option costs slightly more overall due to a small surcharge. You will receive an automatic renewal reminder from the DVLA before your current tax expires, typically as a V11 reminder letter. Tax always expires at the end of a calendar month regardless of the exact date you taxed the vehicle, so if you tax from 15 January, the tax is valid until 31 January the following year.

To pay online, you will need one of the following documents: a DVLA V11 reminder letter, your V5C logbook (registered in your name), or the green V5C/2 new keeper supplement if you have just purchased the vehicle. Payment can be made by debit card, credit card, or Direct Debit at gov.uk/renew-vehicle-tax. You can also tax a vehicle by phone on 0300 123 4321 or in person at a Post Office that handles vehicle tax, though the Direct Debit option is only available online.

Cars Exempt from Road Tax

Certain vehicles do not attract a VED charge, though you are still legally required to register them as taxed each year even when no payment is due. The following categories are exempt from paying VED in 2026:

• Historic vehicles built more than 40 years before 1 January of the current year. In 2026, this means any vehicle built before 1 January 1986 qualifies for the historic vehicle exemption. This rolls forward by one year each January.
• Vehicles used by or registered for a disabled person receiving qualifying disability benefits, such as the higher rate mobility component of DLA or the enhanced rate mobility component of PIP. The exemption covers one vehicle per eligible person.
• Disabled passenger vehicles operated by charities or organisations specifically for transporting disabled people, provided the vehicle is used solely for that purpose.
• Mobility scooters and powered wheelchairs that meet the relevant specifications typically a maximum speed of 8mph on roads and 4mph on pavements, and within the permitted weight limit.
• Agricultural vehicles used solely for farming, horticulture, or forestry, including tractors and certain specialist machines.
• Mowing machines and steam vehicles.
• Vehicles kept off the public road with an active SORN declaration. Note that a SORN vehicle cannot be driven or parked on a public road the exemption only applies while the vehicle is kept on private land.

What Happens to Road Tax When You Sell a Car?

This is one of the most important rules for anyone buying or selling a used car, and it catches out a significant number of drivers every year. Since October 2014, road tax does not transfer between owners when a vehicle is sold. The moment the seller notifies the DVLA of the change of keeper, the existing tax is automatically cancelled and the seller receives a refund for any full calendar months remaining. The new owner must tax the vehicle in their own name before driving it away the seller's tax disc, even if it showed months remaining, is no longer valid.

Buying a car and assuming the existing tax covers you is a common and costly mistake. You can check a vehicle's current tax status, expiry date, and annual road tax cost for free by entering the registration number in our check above. This is included in our free vehicle report alongside MOT status, mileage information, ULEZ compliance, fuel economy, and a full vehicle specification.

How to Find the Tax Band for Your Car

To identify which band applies to your vehicle, you need three pieces of information: the year your car was first registered, the fuel type, and the CO2 emissions figure. The registration year tells you which of the three systems applies. The CO2 figure is printed on your V5C logbook (also called the log book or registration document) and is also available from the DVLA using your registration number. For cars registered after April 2017, CO2 only affects the first-year rate from year two onwards everyone on that system pays the same £200 flat rate, making it straightforward to calculate future costs.

The quickest way to find your car's tax status, expiry date, and road tax cost is to enter your registration number in the check at the top of this page. Our free report pulls the information instantly and displays it clearly, saving you the need to look up tables manually.

Frequently Asked Questions

How much is car tax in 2026 in the UK?

From 1 April 2026, the standard annual VED rate for most petrol, diesel and hybrid cars registered after 1 April 2017 is £200 per year, up from £195 in 2025/26. Paying for six months costs £110 (or £105 by Direct Debit). If your car originally listed for over £40,000 when new or over £50,000 for an electric car from April 2026 an additional Expensive Car Supplement of £440 applies for five years from the second year, bringing the total to £640 annually during that period. Cars registered before April 2017 pay different rates based on CO2 emissions or engine size as shown in the tables above.

How do I check which car tax band my vehicle is in?

Enter your registration number in the check at the top of this page to see your car's tax status, expiry date, and road tax cost for free. To find the band manually, you need your car's registration year, fuel type, and CO2 emissions all printed on your V5C logbook. For cars registered after April 2017, the CO2 band only affects the first year of tax. From year two onwards, most drivers pay the flat £200 standard rate regardless of emissions.

Do electric cars have to pay road tax in 2026?

Yes. Electric vehicles are no longer exempt from VED. New EVs registered from April 2025 pay a first-year rate of £10, then the standard £200 annual rate from year two. EVs registered between April 2017 and March 2025 now pay the £200 standard rate. From April 2026, the Expensive Car Supplement threshold for EVs has risen to £50,000, meaning EVs priced between £40,000 and £50,000 are no longer subject to the luxury surcharge. A per-mile eVED system is planned for April 2028, charging EV drivers 3p per mile on top of their standard annual VED.

What is the Expensive Car Supplement and who pays it?

The Expensive Car Supplement is an additional annual VED charge of £440 that applies to cars with an original list price above £40,000 when new (£50,000 for EVs from April 2026). It runs for five years starting from the second year of registration, bringing the total annual VED to £640 during that period. The threshold is based on the manufacturer's original list price, not the current market value so buyers of second-hand premium cars may still face this charge if it is still within the five-year window. Always check before purchasing any used car that originally listed above the threshold.

What happens if I drive without car tax?

Driving or keeping an untaxed vehicle on a public road is a criminal offence. The police use ANPR cameras linked directly to the DVLA database to detect untaxed vehicles automatically. The initial penalty is an £80 fixed penalty, reduced to £40 within 33 days. If the matter reaches a magistrates' court, fines can reach £1,000 or five times the outstanding tax. Vehicles can be clamped immediately, with a £100 release fee within 24 hours, rising to £200 plus £21 per day storage if impounded.

Does road tax transfer when I buy or sell a car?

No. Since October 2014, road tax does not transfer between owners. When the seller notifies the DVLA of the sale, the existing tax is cancelled and the seller receives a refund for any remaining complete months. The buyer must tax the car in their own name before driving it away. Never assume a car's existing tax covers you as the new keeper it does not. Check the current tax status and expiry date for free by entering the registration in our check tool above.

Which vehicles are exempt from car tax in the UK?

Vehicles exempt from paying VED in 2026 include: historic vehicles built before 1 January 1986 (rolling forward each year for the 40-year historic exemption); vehicles used by or for a disabled person receiving qualifying benefits; disabled passenger vehicles operated by eligible charities; mobility scooters and powered wheelchairs meeting the permitted specifications; and vehicles used solely for agriculture, horticulture, or forestry. You must still register exempt vehicles as taxed each year even when no payment is required failure to do so can result in penalties.