In just a few months, hard hit drivers will be paying more to use their vehicles
Motorists have been told to brace themselves for more road tax rises from April – with some petrol and diesel owners to be hit by a £200 increase. The UK road tax increases in April 2026 are not far away with some drivers being hit more than others.
Most drivers will see their annual Vehicle Excise Duty (VED) rates for 2026 climb by £5. This takes the standard rate from £195 to £200. It’s a move tied directly to the Retail Price Index (RPI) car tax update announced in the 2025 Autumn Budget. While a fiver might not sound like a deal-breaker, the costs start to spiral when you look at brand-new cars or older ‘gas guzzlers.’
For the average car owner, the standard annual VED rate is increasing by £5, moving from £195 to £200. This change applies to most petrol and diesel cars registered after April 2017. However, if you’re buying a brand-new car, the first-year car tax petrol and diesel rates are jumping significantly—by as much as £200 for the highest-emitting vehicles.
However those getting a petrol or diesel car will find the first-year tax for the most polluting models climbing from £5,490 to a whopping £5,690.
New 2026-2027 car tax rates for vehicles registered between March 1, 2001, and April 1, 2017
- Up to 100g/km – Remains at £20
- Between 101 and 110g/km – Remains at £20
- Between 111 and 120g/km – Remains at £35
- Between 121 and 130g/km – Rising from £165 to £170
- Between 131 and 140g/km – Rising from £195 to £200
- Between 141 and 150g/km – Rising from £215 to £225
- Between 151 and 165g/km – Rising from £265 to £275
- Between 166 and 175g/km – Rising from £315 to £325
- Between 176 and 185g/km – Rising from £345 to £360
- Between 186 and 200g/km – Rising from £395 to £410
- Between 201 and 225g/km – Rising from £430 to £445
- Between 226 and 255g/km – Rising from £735 to £760
- Over 255g/km – Rising from £750 to £790
Cars registered on or after 01/04/17 – Standard rate
Cars with a list price of over £40,000 at first registration will pay the additional rate for 5 years from the start of the second licence.
On 1 April 2017, the system for taxing a new car in the UK changed. The CO2-based VED system was replaced with three new road tax bands – zero, standard and premium.
The changes only affect cars first registered after April 2017 and 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.
Cars first registered after April 2017 are still liable for the first-year ‘showroom tax’, with the first year rate based on the vehicle’s CO2 emissions. From year two, the standard rate is applied and drivers are required to pay £195 per year while new cars with a list price of more than £40,000 (or £50,000 for electric cars) pay an additional £425 for the first five years the standard rate is applied.
The road tax system changed again April 2025 with electric cars charged for VED for the first time.
New electric cars are subject to the standard rate of VED and the expensive car supplment, EVs are also subject to the first-year showroom tax (which applies to vehicles with CO2 emissions 1 to 50g/km).
Tax bands for cars registered after April 2017
CO2 emissions (g/km) First year rate Standard rate*
0g/km £10 £195
1 – 50 £110 £195
51 – 75 £130 £195
76 – 90 £270 £195
91 – 100 £350 £195
101 – 110 £390 £195
111 – 130 £440 £195
131 – 150 £540 £195
151 – 170 £1360 £195
171 – 190 £2190 £195
191 – 225 £3300 £195
226 – 255 £4680 £195
Over 255 £5490 £195
If you’re driving a modern classic or just a reliable older runaround registered before March 2001, your tax is based on VED engine size categories rather than CO2 emissions. Here’s how the new rates look:
New mileage taxfor electric and hybrid vehicles
From April 2028, electric vehicles will be charged a new ‘mileage tax’ to fill in the gap left by no fuel duty being paid for the vehicles. From April 2028, drivers will be charged an equivalent of 3p per mile for battery electric cars and £0.015p per mile for plug-in hybrid cars. The Chancellor says that this will go towards helping road maintenance.
That price will increase annually with the Consumer Price Index. At present, there is no announced framework for how this policy will be implemented or how drivers will pay for it. It would add an estimated £300 per 10,000 miles driven in an EV.
John Cassidy, sales managing director at Close Brothers Motor Finance, said: “A pay-by-mile scheme for electric vehicles risks increasing costs for many drivers, particularly those who rely on their cars for higher annual mileage.
“With energy bills rising and public charging becoming more expensive, motorists will fear that EV ownership could end up being significantly more expensive than traditional ownership.”
Expensive car supplement raised for EVs
The Expensive Car Supplement was introduced in 2017 and adds an extra £425 per year for five years following the initial tax payment on new cars priced over £40,000.
However, in the Budget, that threshold has been raised to £50,000 for electric vehicles, meaning that buyers of EVs under this price won’t have to pay the Expensive Car Supplement.
Cars over 40 years old
The classic car 40-year tax rule is still firmly in place. If your car was built more than 40 years ago, you’re still in the ‘historic vehicle’ bracket and pay £0 in VED. Similarly, road tax exemptions for disabled drivers haven’t changed – if you’re eligible, you’ll continue to be fully exempt from these hikes.
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