UK car tax bands 2026/27: What we know so far
Car tax, also known as ‘road tax’ is an annual tax most drivers in the UK must pay to keep their vehicle on the road. It’s also officially known as vehicle excise duty ‘VED’.
How much you pay each year may depend on a range of factors, including:
- When your car was first registered.
- Its CO₂ emissions.
- Its original list price.
Road tax rates are set by the UK Government and administered by the Driver and Vehicle Licensing Agency (DVLA), with updates typically taking effect at the start of the tax year on 1 April.
At the time of writing, the official 2026/27 road tax rate tables have not yet been published on GOV.UK. However, enough information is already available from Government guidance and industry sources to estimate how the system is likely to work from 1 April 2026.
In this guide, we’ve collated the latest available information from across the web to show the expected road tax bands for 2026/27. These figures should be treated as indicative until the official rate tables are published by DVLA.
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Key road tax changes expected from April 2026
Several policy changes are expected to affect the road tax system from 1 April 2026:
Standard road tax rate increase
The standard annual road tax rate for most cars registered from 1 April 2017 onwards is expected to increase from £195 to £200 per year.
This flat rate typically applies from the second year onwards after a car is first registered.
Electric vehicles remain within the standard car tax system
Electric vehicles were previously exempt from paying car tax. However, from 1 April 2025, EVs became subject to road tax for the first time.
Under the current rules, most EVs now pay:
- £10 in the first year (for EVs registered from April 2025).
- The standard annual road tax rate from the second year onwards.
From April 2026, this standard rate is expected to increase to £200 per year, aligning EV taxation with petrol and diesel vehicles registered from April 2017.
Expensive Car Supplement changes
The Expensive Car Supplement (ECS) is an additional car tax charge applied to vehicles with a high original list price.
Under the current 2025/26 tax year framework:
- Cars with a list price above £40,000 must pay the supplement.
- The charge applies for five years, starting from the vehicle's second tax payment.
The ECS is set at £425 for the 2025/26 tax year and is expected to rise to £440 for 2026/27.
EV ECS threshold rising to £50,000
From 1 April 2026, the ECS threshold for zero-emission vehicles will increase from £40,000 to £50,000.
This means electric cars with a list price of £50,000 or less will no longer be subject to the additional charge.
The change will also apply retrospectively to most EVs registered from 1 April 2025, meaning vehicles priced between £40,000 and £50,000 registered since that date will no longer have to pay the supplement when taxed from April 2026.
However, the £40,000 threshold remains in place for petrol, diesel and hybrid vehicles.
New pay-per-mile tax for EVs and PHEVs
In the November 2025 Budget, Chancellor Rachel Reeves announced plans to introduce a new mileage-based tax called Electric Vehicle Excise Duty (eVED) for electric cars and plug-in hybrids.
The Government has said the scheme could be introduced from 1 April 2028, with drivers paying a charge based on the number of miles they travel.
Policy documents have suggested a possible rate of around 3 pence per mile for fully electric cars, with plug-in hybrids paying around half that rate. However, the final rates and structure have not yet been confirmed.
The mileage charge would apply in addition to existing Vehicle Excise Duty (VED) and would likely be administered through the current vehicle tax system.
As of March 2026, the Government is consulting on how the proposed eVED system would operate in practice, including how mileage would be recorded and how the tax would be collected.
The policy is intended to help address the long-term decline in fuel duty revenue as more drivers switch from petrol and diesel vehicles to electric alternatives.
Cars registered on or after 1 April 2017
For cars registered from 1 April 2017 onwards, road tax works in two stages:
- First-year rate (often referred to as 'showroom tax'), based on CO₂ emissions.
- Standard annual rate from the second year onwards.
The 2026/27 figures below are expected rates based on published projections and industry reporting - and will be confirmed when the DVLA publishes the official road tax tables:
First-year road tax rates
CO₂ emissions (g/km) |
2025/26 first-year tax |
Expected 2026/27 |
|---|---|---|
| 0 | £10 | £10 |
| 1–50 | £110 | £115 |
| 51–75 | £130 | £135 |
| 76–90 | £270 | £280 |
| 91–100 | £350 | £365 |
| 101–110 | £390 | £405 |
| 111–130 | £440 | £455 |
| 131–150 | £540 | £560 |
| 151–170 | £1,360 | £1,410 |
| 171–190 | £2,190 | £2,270 |
| 191–225 | £3,300 | £3,420 |
| 226–255 | £4,680 | £4,850 |
| Over 255 | £5,490 | £5,690 |
Please note: These figures are estimates based on industry projections. The official rates will be confirmed when the DVLA releases the final road tax tables.
At least 59 cars will face a £5,690 showroom tax in April 2026
As of March 2026, the highest first-year car tax rate stands at £5,490, applying to new cars emitting more than 255g/km of CO₂.
From 1 April 2026, this top road tax band is expected to increase to £5,690, meaning some drivers buying high-emission vehicles could face record first-year car tax bills!
Press reports suggest around 59 car models currently fall into this highest emissions category, many of them high-performance SUVs, luxury saloons, and supercars.
Models in the highest car tax band
Manufacturer |
Models |
|---|---|
| Alfa Romeo | Stelvio 2.9 V6 Bi-Turbo |
| Aston Martin | DB12 4.0 V8 · DBX 4.0 V8 · Vantage 4.0 V8 |
| Audi | R8 5.2 FSI V10 · RS6 4.0 TFSI V8 · RS7 4.0 TFSI V8 · RSQ8 4.0 TFSI V8 · S8 4.0 TFSI V8 · SQ7 4.0 TFSI V8 · SQ8 4.0 TFSI V8 |
| Bentley | Bentayga 4.0 V8 · Continental 4.0 V8 · Continental 6.0 W12 · Flying Spur 4.0 V8 |
| BMW | Alpina XB7 4.4 V8 · M8 4.4 V8 · X5 M 4.4 V8 · X6 M 4.4 V8 · X7 M 4.4 V8 |
| Cadillac | Escalade V8 |
| Chevrolet | Corvette Stingray 6.2 V8 |
| Dodge | Challenger V8 · Charger V8 |
| Ferrari | Purosangue 6.5 V12 · Roma 3.8T V8 |
| Ford | Mustang 5.0 V8 · Ranger 2.0 EcoBlue · Ranger 3.0 EcoBlue · Ranger 3.0 V6 |
| GMC | Hummer EV |
| INEOS | Grenadier 3.0P |
| Jaguar | F-PACE SVR |
| Jeep | Wrangler 6.4 V8 |
| Lamborghini | Huracán · Urus |
| Land Rover | Defender V8 · Discovery V8 · Range Rover V8 · Range Rover Sport V8 |
| Lexus | LX 600 |
| Maserati | MC20 · Levante V8 |
| Mercedes-AMG | GT · G63 · SL · S63 |
| Nissan | GT-R |
| Porsche | 911 Turbo · Cayenne Turbo · Panamera Turbo |
| RAM | 1500 V8 |
| Rolls-Royce | Cullinan · Ghost |
| Shelby | GT500 |
| Toyota | Land Cruiser · Tundra |
| Volkswagen | Amarok V6 |
Richard Evans, webuyanycar's Head of Technical Services, said:
"The £5,690 showroom tax band shows just how quickly first-year car tax rises once emissions pass the 255g/km threshold. Most cars in this bracket are powerful SUVs or high-end models with large petrol engines, so buyers are effectively paying a premium for all that extra power.
"However, under the current 2025/26 rates, choosing a slightly lower-emission version of the same car could reduce your first-year tax bill from £5,490 to £4,680 — a saving of £810.
"From April 2026, that gap is expected to widen further, meaning performance car buyers could save around £840 in first-year tax alone simply by opting for a model that falls just below the maximum 255g/km threshold!"
Standard car tax rates (year two onwards)
Vehicle type |
2025/26 |
Expected 2026/27 |
|---|---|---|
| Petrol / diesel | £195 | £200 |
| Hybrid | £195 | £200 |
| Battery electric vehicle | £195 | £200 |
Please note: These figures are estimates based on industry projections. The official rates will be confirmed when the DVLA releases the final road tax tables.
Cars registered between 1 March 2001 and 31 March 2017
Vehicles registered between March 2001 and April 2017 are taxed based on CO₂ emissions bands (A–M):
Band |
CO₂ emissions (g/km) |
2025/26 |
Expected 2026/27 |
|---|---|---|---|
| A | Up to 100 | £20 | £20 |
| B | 101–110 | £20 | £20 |
| C | 111–120 | £35 | £35 |
| D | 121–130 | £165 | £170 |
| E | 131–140 | £195 | £200 |
| F | 141–150 | £215 | £225 |
| G | 151–165 | £265 | £275 |
| H | 166–175 | £315 | £325 |
| I | 176–185 | £345 | £360 |
| J | 186–200 | £395 | £410 |
| K | 201–225 | £430 | £445 |
| L | 226–255 | £735 | £760 |
| M | Over 255 | £760 | £790 |
Please note: These figures are estimates based on industry projections. The official rates will be confirmed when the DVLA releases the final road tax tables.
Cars registered before 1 March 2001
Cars registered prior to 1st March 2001 are classed as private/light goods (PLG) vehicles, private motor cars, or good vehicles not more than 3,500kg revenue weight.
They are taxed based on engine size rather than CO2 emissions:
Engine size |
2025/26 |
Expected 2026/27 |
|---|---|---|
| Up to 1549cc | £220 | £230 |
| Over 1549cc | £360 | £375 |
Please note: These figures are estimates based on industry projections. The official rates will be confirmed when the DVLA releases the final road tax tables.
What is road tax – and why do I have to pay it?
Road tax is a mandatory annual tax that applies to most vehicles that are driven or parked on UK roads.
The money collected goes to the Exchequer and may be spent on a variety of public services and amenities, such as hospitals, police forces and community projects, in addition to road works and maintenance.
Responsibility for the upkeep of UK roads lies with the Department of Transport, who distribute money allocated to them by the Exchequer to the Highways Agency (who maintain the UK's strategic road network) and local authorities (who are responsible for the maintenance of all roads except motorways and significant A-roads).
Car tax exemptions
On April 1st 2025, road tax exemption for EVs ended. However, there are still some circumstances in which drivers are exempt from car tax:
-
Drivers with disabilities
You can apply for exemption from vehicle tax if you are in receipt of:
- The higher rate mobility component of Disability Living Allowance.
- The higher rate mobility component of Child Disability Payment.
- The enhanced rate mobility component of Personal Independence Payment (PIP).
- The enhanced rate mobility component of Adult Disability Payment (ADP).
- Armed Forces Independence Payment.
- War Pensioners' Mobility Supplement.
You can also apply for a 50% vehicle tax reduction if you are in receipt of:
- The standard rate mobility component of Personal Independence Payment (PIP).
- The enhanced rate mobility component of Adult Disability Payment (ADP).
Please visit the 'Financial help if you're disabled' section of the gov.uk website for more information.
-
Historic cars
Most cars over 40 years old are eligible for exemption from car tax. However, this is not automatic; you must apply once your car meets the eligibility criteria.
Please visit our guide to classic car tax exemption for a more detailed explanation.
-
SORN cars
If you make a SORN (Statutory Off-road Notification) for your vehicle, you will no longer be required to pay road tax on the vehicle.
You will also be eligible for a car tax refund from the DVLA if you have any full months' car tax remaining.
Benefit-in-Kind (BiK) tax rates from 2024/25 to 2029/30
Benefit-in-kind (BiK) is a tax levied on employees who receive perks such as company cars from their employer. BiK tax on company cars is based on the vehicle's list price (or P11D value) and its CO2 emissions.
The rates are set by HMRC and vehicles in lower emissions bands, such as electric cars, attract lower BiK rates, offering tax advantages to employees.
The table below shows the BIK company car tax rates for the years ahead. The rates for the 2028/29 and 2029/30 tax years were announced in the Government's 2024 Autumn Budget:
CO2 (g/km) |
Electric range (miles) |
2024/25 |
2025/26 |
2026/27 |
2027/28 |
2028/29 |
2029/30 |
|---|---|---|---|---|---|---|---|
| 0 | N/A | 2% | 3% | 4% | 5% | 7% | 9% |
| 1-50 | >130 | 2% | 3% | 4% | 5% | 18% | 19% |
| 1-50 | 70-129 | 5% | 6% | 7% | 8% | 18% | 19% |
| 1-50 | 40-69 | 8% | 9% | 10% | 11% | 18% | 19% |
| 1-50 | 30-39 | 12% | 13% | 14% | 15% | 18% | 19% |
| 1-50 | <30 | 14% | 15% | 16% | 17% | 18% | 19% |
| 51-54 | 15% | 16% | 17% | 18% | 19% | 20% | |
| 55-59 | 16% | 17% | 18% | 19% | 20% | 21% | |
| 60-64 | 17% | 18% | 19% | 20% | 21% | 22% | |
| 65-69 | 18% | 19% | 20% | 21% | 22% | 23% | |
| 70-74 | 19% | 20% | 21% | 21% | 22% | 23% | |
| 75-79 | 20% | 21% | 21% | 21% | 22% | 23% | |
| 80-84 | 21% | 22% | 22% | 22% | 23% | 24% | |
| 85-89 | 22% | 23% | 23% | 23% | 24% | 25% | |
| 90-94 | 23% | 24% | 24% | 24% | 25% | 26% | |
| 95-99 | 24% | 25% | 25% | 25% | 26% | 27% | |
| 100-104 | 25% | 26% | 26% | 26% | 27% | 28% | |
| 105-109 | 26% | 27% | 27% | 27% | 28% | 29% | |
| 110-114 | 27% | 28% | 28% | 28% | 29% | 30% | |
| 115-119 | 28% | 29% | 29% | 29% | 30% | 31% | |
| 120-124 | 29% | 30% | 30% | 30% | 31% | 32% | |
| 125-129 | 30% | 31% | 31% | 31% | 32% | 33% | |
| 130-134 | 31% | 32% | 32% | 32% | 33% | 34% | |
| 135-139 | 32% | 33% | 33% | 33% | 34% | 35% | |
| 140-144 | 33% | 34% | 34% | 34% | 35% | 36% | |
| 145-149 | 34% | 35% | 35% | 35% | 36% | 37% | |
| 150-154 | 35% | 36% | 36% | 36% | 37% | 38% | |
| 155-159 | 36% | 37% | 37% | 37% | 38% | 39% | |
| 160-164 | 37% | 37% | 37% | 37% | 38% | 39% | |
| 165-169 | 37% | 37% | 37% | 37% | 38% | 39% | |
| 170+ | 37% | 37% | 37% | 37% | 38% | 39% |
Please note: A 4% surcharge will be applied to any diesel vehicles that do not meet the RDE2 standard.
Richard Evans, webuyanycar's head of technical services said:
The future BiK car tax rates show that the UK Government is continuing to incentivise drivers to switch to EVs.
Company car tax rates for EVs will remain significantly lower than petrol and diesel vehicles. Hybrid drivers will also initially benefit from favourable rates, but these will increase significantly as we approach 2030, especially for shorter-range models.
Despite the increases in the coming years, EVs are the most tax-efficient choice by a clear margin, reinforcing the Government's commitment to driving electrification.
How to pay your road tax
You can tax your car online via the gov.uk website. You'll need a reference number from one of the following documents:
- A V11 reminder.
- Your V5C logbook (it must be in your name).
- The green V5C/2 'new keeper supplement' (if you have just bought the car).
Please note: If you don't have any of these documents, you'll need to order a replacement V5C logbook by completing a V62 form.
Taxing your car online via the GOV.UK website is the fastest and easiest method. See our 'How to tax your car' step-by-step guide for more information.
Car tax fines and penalties
You may face the following fines and penalties if you drive or park an untaxed car on public highways:
- If caught driving an untaxed car, you could be fined up to £1,000.
- If you fail to pay a car tax fine, the case could be escalated to a magistrates' court – and you may be liable to pay a penalty of £1,000 or five times the initial penalty amount (whichever is higher).
- You may face a £2,500 penalty if caught driving or parking an untaxed vehicle on a public highway whilst you have a statutory off road notification (SORN) in place.
- Your vehicle may also be clamped, in which case, a £100 release fee will apply for the first 24 hours. Once your vehicle has been removed, the release fee will increase to £200, together with a storage fee of £21 for each day your vehicle is impounded.
Our guide 'Driving without tax' explains this topic in more detail.
How often do you need to tax your car?
Road tax must be paid annually.
When your new car is first registered, you must pay for 12 months' road tax upfront. This is known as the 'showroom tax'. This tax must be paid before you can legally drive the vehicle away.
After this, you can choose to pay your road tax monthly or in 6- or 12-month periods at different rates.
If you pay by Direct Debit, your next payment will automatically be taken when a new tax year starts. However, if you paid by credit/debit card, it's your responsibility to set up a new payment.
How does the DVLA monitor road tax?
The DVLA keeps all road tax records on an electronic database.
Modern speed cameras (including those mounted to police cars) are fitted with Automated Number Plate Recognition (ANPR) technology. This allows them to instantly check the DVLA's database to determine whether passing cars are taxed.
Road tax and selling your car
In 2014, the physical tax disc system was disbanded – and the car tax system was brought online, meaning it was no longer possible to transfer outstanding road tax when selling a car.
When you buy a car, you must tax it before driving away. If you sell your car, you must notify the DVLA – and you can also claim a car tax refund for any full months' unused cover.
Frequently Asked Questions
Road tax is a mandatory annual tax that applies to most vehicles that are driven or parked on UK roads.
The money collected goes to the Exchequer and may be spent on a variety of public services and amenities, such as hospitals, police forces and community projects, in addition to road works and maintenance.
Responsibility for the upkeep of UK roads lies with the Department of Transport, who distribute money allocated to them by the Exchequer to the Highways Agency (who maintain the UK's strategic road network) and local authorities (who are responsible for the maintenance of all roads except motorways and significant A-roads).
Road tax must be paid annually.
When your new car is first registered, you must pay for 12 months' road tax upfront. This is known as the 'showroom tax'. This tax must be paid before you can legally drive the vehicle away.
After this, you can choose to pay your road tax monthly or in 6- or 12-month periods at different rates.
If you pay by Direct Debit, your next payment will automatically be taken when a new tax year starts. However, if you paid by credit/debit card, it's your responsibility to set up a new payment.
The DVLA keeps all road tax records on an electronic database.
Modern speed cameras (including those mounted to police cars) are fitted with Automated Number Plate Recognition (ANPR) technology. This allows them to instantly check the DVLA's database to determine whether passing cars are taxed.
Vehicle Excise Duty (VED) is the official term for vehicle tax, car tax or road tax. It is a mandatory annual tax that must be paid by most owners of UK-registered cars, vans, motorcycles and other motor vehicles.
The amount of VED payable depends on a variety of factors such as the vehicle type, its age and CO2 emissions level (or engine size). VED rates are set by the Government and adjusted in line with inflation.
- For cars registered before 1st March 2001, VED is calculated based on engine size.
- For cars registered after 1st March 2001, VED is calculated based on the vehicle's CO2 emissions.
- An expensive car supplement is also added to the road tax between the second and sixth year for cars with a list price exceeding £40,000 (and EVs priced over £50,000).
From 1st April 2026, the flat annual car tax rate will increase to £200, marking a £5 increase from the 2025/26 rate.
The amount of CO2 (carbon dioxide) that a car emits is measured in grams per kilometre (g/km) and indicates its ecological credentials.