From 1 April 2026, many motorists will pay more UK vehicle excise duty (VED). The increase is inflation-linked and applies across several parts of the system, not only the “headline” band for the highest CO₂ cars.
For most people, the change is modest. For buyers of brand-new, high-emission cars, the first-year bill can be eye-watering. And for electric vehicle owners, there is still tax to pay, even if the first-year rate stays low.
The amount you pay depends on when the car was first registered, its CO₂ emissions and, for some newer vehicles, its original list price. The table below highlights the main car tax rates changing from April 2026.
For cars first registered on or after 1 April 2017, VED is usually split into two parts:
On top of that, some cars pay the Expensive Car Supplement for five years (years 2–6).
For cars registered between 1 March 2001 and 31 March 2017, VED follows a different CO₂ band table and does not work the same way as the post-2017 system.
If you are buying a new petrol or diesel car with very high CO₂ emissions, the first-year “showroom tax” can be the biggest cost shock.
For cars emitting over 255 g/km, the first-year rate rises to £5,690 from 1 April 2026. That is £200 more than the 2025–26 level.
This matters most if you are:
Worked example: A new petrol or diesel car emitting over 255g/km and registered from 1 April 2026 has a first-year VED bill of £5,690. From the second year, the standard annual rate is £200. If the car also has a list price above £40,000, the £440 Expensive Car Supplement applies during years 2–6, making the annual VED £640 during those years.
Your exact VED can vary by registration date, emissions and vehicle value, so check the applicable rate for your car before budgeting.
Electric cars are no longer fully exempt from VED. Under the rules that came in from 1 April 2025, new zero-emission cars pay a £10 first-year rate and then pay the standard rate afterwards.
From 1 April 2026, that standard rate becomes £200 (up from £195).
There is also a helpful change for many EV buyers: the government is increasing the Expensive Car Supplement threshold for zero-emission cars to £50,000, effective 1 April 2026, for eligible vehicles registered from 1 April 2025 onwards.
Practical takeaway: an EV priced at £45,000 may avoid the ECS once the new threshold applies, while a petrol or diesel car still faces the £40,000 threshold.
The April 2026 VED changes should not be confused with the separate Electric Vehicle Excise Duty (eVED) that will take effect from 1 April 2028. Under the confirmed rules, battery-electric and hydrogen cars will pay 3p per mile, while plug-in hybrid cars will pay 1.5p per mile, alongside the existing VED system.
This mileage-based charge does not apply during the 2026/27 tax year. Drivers planning further ahead can also read our guide to the pay-per-mile tax on electric vehicles.
If your car was registered between 1 March 2001 and 31 March 2017, your annual VED is still based on CO₂ bands.
Here are the top-end bands for 2026–27:
Small increases add up, especially for fleets. A few sensible checks can protect cash flow.
At Apex Accountants, we help drivers and businesses understand how motoring costs affect tax, budgeting, and cash flow.
Our support can include:
The April 2026 updates to UK vehicle excise duty are not a single “one-off” change. They raise the standard annual rate, increase first-year charges for the highest CO₂ cars, and adjust how the expensive car rules apply to many EVs.
If you want help modelling the cost impact for your household or fleet, contact Apex Accountants for a practical review and clear next steps.
The 2026/27 VED rates took effect on 1 April 2026. They include the £200 standard annual rate, revised first-year CO₂ rates and the higher £50,000 Expensive Car Supplement threshold for qualifying zero-emission vehicles.
Yes. Zero-emission cars registered on or after 1 April 2025 pay £10 in their first year and the standard £200 rate from the second year. From 1 April 2026, the Expensive Car Supplement threshold for zero-emission cars is £50,000, so eligible vehicles with a list price of £50,000 or less avoid the additional £440 annual charge.
The Expensive Car Supplement is £440 per year for 2026/27 and applies for five years from the second vehicle-tax payment. The threshold remains above £40,000 for petrol and diesel cars, while zero-emission cars use the higher £50,000 threshold from 1 April 2026. GOV.UK
Most diesel cars follow the standard first-year CO₂ bands, but diesel cars that do not meet the RDE2 emissions standard are charged at the higher diesel first-year rates. For 2026/27, the maximum first-year VED is £5,690.
Cars registered before 1 March 2001 are taxed according to engine size. For 2026/27, the 12-month rate is £230 for vehicles with engines up to 1,549cc and £375 for larger engines. Cars registered between 1 March 2001 and 31 March 2017 continue to use CO₂-based bands, starting at £20.
You can pay or renew online via GOV.UK. Input your reg to see the exact VED due. If unsure, consult a tax professional for advice on company cars or vehicle financing, as these changes can affect tax planning.
The £200 increase refers to the highest first-year VED band for a new car emitting over 255g/km. That rate increased from £5,490 in 2025/26 to £5,690 in 2026/27.
New high-emission cars face the largest first-year bills. Cars emitting over 255g/km have a first-year VED rate of £5,690, up £200 from 2025/26. Higher-value cars may also face the £440 Expensive Car Supplement from their second year.
The amount depends on your vehicle’s registration date, CO₂ emissions and, for some newer cars, its original list price. For most cars registered from 1 April 2017, the standard annual rate is £200 in 2026/27, while first-year rates vary according to emissions. Cars with a higher list price may also have to pay the £440 Expensive Car Supplement.
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