From April 1, 2026, motorists across the United Kingdom will see changes to Vehicle Excise Duty (VED), commonly known as road tax. The updated rates affect several groups of drivers, including owners of petrol, diesel, hybrid, and electric vehicles. While many drivers will experience only a small increase, others – especially those purchasing new high-emission vehicles – could face significantly higher charges.
The changes follow the Retail Price Index (RPI) adjustment announced in the 2025 Autumn Budget. These updates aim to keep road tax revenues aligned with inflation while maintaining the government’s broader environmental and transport policies.
For most drivers, the standard annual VED rate will increase slightly. The typical yearly charge for vehicles registered after April 2017 will rise from £195 to £200.
Although the £5 increase may seem minor, other parts of the road tax system will see larger adjustments. New cars with higher CO2 emissions will face increased first-year charges, sometimes rising by as much as £200.
More than 13 tax bands will be affected, particularly for vehicles registered between 2001 and 2017.
Bands
Cars registered between March 1, 2001 and April 1, 2017 follow a CO2-based tax structure. The updated 2026-2027 rates for these vehicles are shown below.
| CO2 Emissions (g/km) | Previous Rate | New Rate |
|---|---|---|
| Up to 100g/km | £20 | £20 |
| 101 – 110 | £20 | £20 |
| 111 – 120 | £35 | £35 |
| 121 – 130 | £165 | £170 |
| 131 – 140 | £195 | £200 |
| 141 – 150 | £215 | £225 |
| 151 – 165 | £265 | £275 |
| 166 – 175 | £315 | £325 |
| 176 – 185 | £345 | £360 |
| 186 – 200 | £395 | £410 |
| 201 – 225 | £430 | £445 |
| 226 – 255 | £735 | £760 |
| Over 255 | £750 | £790 |
Lower-emission vehicles remain relatively inexpensive to tax, while higher-polluting vehicles face larger increases.
Standard
For cars registered on or after April 1, 2017, the VED system uses a different structure.
These vehicles pay a CO2-based rate in the first year – often called the “showroom tax.” After the first year, they move to a standard annual rate.
From April 2026:
| Category | Current Rate | New Rate |
|---|---|---|
| Standard annual rate | £195 | £200 |
This rate applies to most petrol, diesel, and hybrid cars once they move beyond their first year of registration.
First Year
The first-year tax rate for new cars depends on CO2 emissions. High-emission vehicles face the biggest increases.
For example, the highest-polluting vehicles currently taxed at £5,490 will rise to £5,690 in the first year.
Below is a summary of the existing CO2-based first-year system.
| CO2 Emissions (g/km) | First-Year Rate |
|---|---|
| 0g/km | £10 |
| 1–50 | £110 |
| 51–75 | £130 |
| 76–90 | £270 |
| 91–100 | £350 |
| 101–110 | £390 |
| 111–130 | £440 |
| 131–150 | £540 |
| 151–170 | £1,360 |
| 171–190 | £2,190 |
| 191–225 | £3,300 |
| 226–255 | £4,680 |
| Over 255 | £5,490 → £5,690 |
These charges are designed to discourage purchases of high-emission vehicles.
Electric
Electric vehicles have recently entered the VED system for the first time.
Since April 2025:
- EVs now pay the standard annual rate of VED
- They are also subject to the expensive car supplement if their list price exceeds £50,000
- Some EVs may pay first-year showroom tax if emissions fall within the 1-50g/km band
This change was introduced as EV adoption increased and the government sought to maintain tax revenue previously generated from fuel duty.
Luxury
Cars with high purchase prices face an additional charge known as the expensive car supplement.
| Vehicle Price | Extra Annual Charge |
|---|---|
| Over £40,000 | £425 |
| EVs over £50,000 | £425 |
This fee is paid for five years starting from the second year of ownership, on top of the standard VED rate.
Future
Further road-tax changes are planned for electric and hybrid vehicles.
Beginning in April 2028, the UK government plans to introduce a mileage-based tax system. This policy is designed to replace lost fuel duty revenue as electric vehicles become more common.
Proposed charges include:
| Vehicle Type | Proposed Mileage Tax |
|---|---|
| Electric vehicles | 3p per mile |
| Plug-in hybrids | 1.5p per mile |
For drivers covering around 10,000 miles per year, this could add roughly £300 annually for EV owners.
However, details on how the system will be implemented or collected have not yet been confirmed.
Exemptions
Despite these increases, several exemptions remain in place.
Vehicles over 40 years old continue to qualify as historic vehicles and remain fully exempt from road tax. Additionally, certain disabled drivers may qualify for free VED if they receive specific mobility benefits.
Vehicles declared as SORN (Statutory Off Road Notification) are also exempt while they are not being used on public roads.
The upcoming 2026 road tax changes reflect the government’s ongoing efforts to balance revenue needs with environmental goals. While many drivers will only see a small increase in annual costs, others – particularly those purchasing high-emission vehicles – may face significantly higher charges. As the automotive market continues shifting toward electric vehicles, further changes to the UK’s road tax system are expected in the coming years.
FAQs
When do the new UK road tax rates start?
The updated VED rates take effect from April 1, 2026.
How much is the new standard VED rate?
The standard annual road tax will rise from £195 to £200.
Will electric vehicles pay road tax?
Yes, EVs now pay standard VED and may face luxury tax.
What is the expensive car supplement?
A £425 annual charge for cars over £40,000.
