UK drivers are paying updated Vehicle Excise Duty rates in the 2026–27 tax year, following another round of changes that took effect on 1 April 2026.
The changes matter to owners of petrol, diesel, hybrid and electric cars, although the amount paid depends heavily on when the vehicle was first registered, its CO2 emissions and, in some cases, its original list price.
The standard annual VED rate for most cars registered from April 2017 is now £200. New zero-emission cars pay £10 in their first year before moving to the standard rate, while high-emission new cars can face a first-year bill of as much as £5,690.
There is also some relief for buyers of higher-priced electric cars. From April 2026, the Expensive Car Supplement threshold for qualifying zero-emission cars increased from £40,000 to £50,000.
Here is what drivers need to know about the current rules and the further changes already being planned.
Last Updated: 26.08.2026
What Are the Current UK Car Tax Rules in 2026?
Vehicle Excise Duty, commonly called car tax or road tax, applies to most vehicles used or kept on public roads.
The exact amount depends on the vehicle’s registration date and tax category. Cars registered from 1 April 2017 generally have a CO2-based first-year charge followed by a flat standard annual rate.
For the 2026–27 tax year:
- Standard Annual Rate: £200 for most cars registered from 1 April 2017
- Zero-Emission First-Year Rate: £10
- Highest First-Year Rate: £5,690
- Expensive Car Supplement: £440 per year where applicable
- Zero-Emission Expensive Car Threshold: More than £50,000
The current DVLA vehicle tax rates confirm the rates applying from 1 April 2026.
Drivers should not assume that all cars pay the £200 standard rate because vehicles registered before April 2017 remain under different tax systems.
Why Does a Car’s Registration Date Matter?
Registration date is one of the most important details when calculating UK car tax.
Cars registered between 1 March 2001 and 31 March 2017 continue to use the older CO2 emissions band system.
This means annual tax can vary significantly depending on emissions rather than moving automatically to the £200 standard rate.
Cars registered before March 2001 are generally taxed according to engine size, while most cars registered from April 2017 use the newer first-year and standard-rate structure.
Electric cars also demonstrate why registration dates matter.
A zero-emission car registered between April 2017 and March 2025 generally pays the £200 standard rate in 2026–27, whereas an EV registered between March 2001 and March 2017 falls into the lowest applicable older-system band and pays £20.
Checking the first-registration date before buying a used car can therefore prevent unexpected annual costs.
How Do the Rules Affect Older Drivers?
There is no automatic vehicle-tax exemption simply because a driver reaches retirement age or turns 70.
Older drivers pay VED according to the same vehicle-based rules as other motorists. The car’s age, emissions, registration date and tax class determine the bill rather than the driver’s age.
However, some motorists may qualify for specific exemptions or reductions.
- Disability Exemption: Eligible disabled motorists can receive a full exemption for one qualifying vehicle
- Disability Reduction: Some motorists receiving the standard mobility component of PIP or Adult Disability Payment may qualify for a 50% reduction
- Historic Vehicle Exemption: Vehicles made before 1 January 1986 can currently qualify for historic vehicle tax exemption
Even an exempt vehicle still normally has to be taxed through the DVLA so that its tax status is properly recorded.
How Much Car Tax Do Electric Vehicle Owners Pay in 2026?
The biggest recent change for electric-car owners happened on 1 April 2025, when the previous general VED exemption for zero-emission vehicles ended.
That change is now fully in effect.
| Electric Car Registration | 2026–27 VED Position |
| From 1 April 2025 | £10 first year, then £200 |
| 1 April 2017 to 31 March 2025 | £200 standard rate |
| 1 March 2001 to 31 March 2017 | £20 |
The House of Commons Library’s zero-emission vehicle tax briefing confirms that EVs entered the VED system from April 2025 and explains how the rules apply across different registration periods.
The removal of the EV exemption has already had a noticeable effect on government receipts.
The National Audit Office reported that DVLA VED revenue rose to £9 billion in 2025–26, with the removal of the zero-emission exemption among the factors contributing to the increase.
What Changed for Expensive Electric Cars in 2026?
One of the more favourable changes introduced on 1 April 2026 concerns the Expensive Car Supplement.
Cars above a specified original list-price threshold can face an additional VED charge for five years after the first-year licence.
For petrol, diesel and other affected cars, the threshold generally remains more than £40,000.
For qualifying zero-emission cars, however, the threshold increased to more than £50,000 from April 2026.
The supplement itself is £440 a year in 2026–27. An affected vehicle paying the £200 standard rate could therefore have a total annual VED liability of £640 during the years in which the supplement applies.
The higher EV threshold is particularly relevant to motorists comparing electric models around the £40,000 to £50,000 price range.
What Are the 2026 First-Year VED Rates?
A new car’s first-year tax bill is mainly based on its certified CO2 emissions.
Lower-emission vehicles pay substantially less, while cars in the highest emissions bands face much larger first-year bills.
| CO2 Emissions | 2026–27 First-Year Rate |
| 0g/km | £10 |
| 1–50g/km | £115 |
| 51–75g/km | £135 |
| 76–90g/km | £280 |
| 91–100g/km | £365 |
| 101–110g/km | £405 |
| 111–130g/km | £455 |
| 131–150g/km | £560 |
| 151–170g/km | £1,410 |
| 171–190g/km | £2,270 |
| 191–225g/km | £3,420 |
| 226–255g/km | £4,850 |
| Over 255g/km | £5,690 |
These figures apply to petrol, qualifying diesel, alternative-fuel and zero-emission cars in the main first-year table. Certain diesel cars that do not meet the required emissions standard can move into a higher first-year band.
After the first licence, most cars registered from April 2017 move to the £200 standard annual rate.
What About Hybrid Cars?
Hybrid and plug-in hybrid vehicles do not receive the old alternative-fuel VED discount.
Their first-year charge is determined by official CO2 emissions. For example, a newly registered plug-in hybrid producing between 1g/km and 50g/km generally has a £115 first-year rate under the main 2026–27 table.
After the first licence, a post-April 2017 hybrid normally moves to the same £200 annual standard rate as other vehicles.
How Can Drivers Check What They Need to Pay?
Drivers do not need to calculate their VED entirely by themselves.
Before buying or taxing a vehicle, check:
- Registration Date: This identifies which VED system applies
- CO2 Emissions: Particularly important for first-year rates and pre-April 2017 cars
- Original List Price: This determines whether the Expensive Car Supplement may apply
- Fuel Type: Electric, hybrid, petrol and diesel cars can receive different treatment
- Tax Class: Check whether the vehicle qualifies for an exemption or reduction
The vehicle’s V5C log book contains important registration information, while DVLA services can be used to check current vehicle-tax details.
Drivers should also remember that purchasing a used car does not transfer the previous keeper’s vehicle tax. The new keeper must tax the car separately before using it on public roads.
What Should Car Buyers Consider in 2026?
VED is unlikely to be the biggest cost involved in running most cars, but it can change the overall affordability of different models.
A buyer comparing vehicles should consider more than the headline purchase price.
- Check First-Year Tax: High-emission new cars can carry substantial initial charges
- Check Future Annual Tax: Most post-2017 cars move to the £200 standard rate
- Check The List Price: A qualifying expensive car can attract an additional £440 annual charge
- Compare Older Vehicles Carefully: Pre-2017 cars may have much higher or lower annual VED depending on emissions
- Consider Future EV Taxes: Electric-car taxation is set to change again from 2028
For used-car buyers in particular, two similarly priced cars can have very different ongoing tax liabilities because of their registration date and emissions.
What Car Tax Changes Are Planned After 2026?
Another major shift is planned for electric and plug-in hybrid cars from 1 April 2028.
The government is developing Electric Vehicle Excise Duty, or eVED, which will introduce a mileage-related element alongside existing VED.
Under the proposals published in July 2026:
- Battery Electric Cars: 3p per mile
- Plug-In Hybrid Cars: 1.5p per mile
- Hydrogen Fuel-Cell Cars: 3p per mile
Drivers would provide an odometer reading and estimate their mileage for the upcoming tax period. The charge would later be reconciled against actual mileage.
The latest eVED policy details were published in July 2026 alongside draft legislation following the government’s consultation.
For example, at the proposed 3p rate, an electric car covering 10,000 miles in a year would generate a £300 mileage-based eVED charge before considering its ordinary annual VED.
The measure is currently scheduled to take effect from April 2028, so motorists buying electric cars in 2026 should be aware of the future direction of UK motoring taxation.
Conclusion
UK car tax has changed considerably since the EV exemption ended in April 2025, and the 2026–27 VED rates are now the figures that motorists need to use.
Most cars registered from April 2017 pay a £200 standard annual rate after their first licence, while new high-emission vehicles can face first-year charges of up to £5,690.
Electric cars are now part of the VED system, although the increase of the zero-emission Expensive Car Supplement threshold to £50,000 provides some relief for buyers of higher-priced EVs.
Drivers should check registration date, CO2 emissions, list price and eligibility for exemptions before assuming how much tax they will pay. Looking further ahead, the planned introduction of mileage-based eVED from April 2028 means electric-car taxation will continue to evolve.
FAQs About UK Car Tax Changes in 2026
What Is the Standard UK Car Tax Rate in 2026?
The standard VED rate for most cars registered from 1 April 2017 is £200 a year during the 2026–27 tax year.
Do Electric Cars Pay Road Tax in 2026?
Yes. Electric cars have been liable for VED since April 2025, with most post-2017 EVs now paying the £200 standard rate after the applicable first-year treatment.
Do Pensioners Get Free Car Tax?
No automatic exemption is available purely because someone is a pensioner or older driver. Disability and historic-vehicle exemptions can apply where the eligibility requirements are met.
What Is the Highest First-Year VED Rate in 2026?
The highest main first-year VED charge is £5,690 for cars in the highest CO2 emissions band.
What Is the Expensive Car Threshold for EVs in 2026?
The Expensive Car Supplement threshold for qualifying zero-emission cars increased to more than £50,000 from 1 April 2026.
How Much Does a New Plug-In Hybrid Pay in Car Tax?
The first-year amount depends on its official CO2 emissions. A qualifying vehicle in the 1–50g/km band pays £115 under the main 2026–27 first-year rate table.
Is Pay-Per-Mile Tax Coming for Electric Cars?
The government plans to introduce eVED from 1 April 2028, starting at 3p per mile for battery-electric cars and 1.5p per mile for plug-in hybrids under the published proposals.
