Millions of drivers across the United Kingdom are set to be impacted by a significant increase in car tax, officially known as Vehicle Excise Duty (VED), starting from next week. This annual adjustment, which typically occurs every April in line with inflation, will see higher rates for most vehicles based on their carbon dioxide emissions.
First-Year Car Tax Rates for New Vehicles
For those purchasing a new car, the initial showroom tax will see notable changes. Vehicles emitting between 1-50g/km of CO2 will face a first-year rate increase from £110 to £115. At the higher end, cars producing over 255g/km of CO2 will see a jump from £5,490 to £5,690. However, new electric cars with zero emissions will maintain their first-year rate at £10, unchanged from previous levels.
These first-year rates apply only for the initial 12 months of ownership. From the second year onward, drivers must pay the standard car tax rate, which is rising from £195 to £200 annually.
Detailed First-Year VED Rates from April 2026
- 0g/km – £10 (no change)
- 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
- 255+g/km – £5,690
Car Tax for Older Vehicles Registered Between 2001 and 2017
Different rates apply for cars registered between March 1, 2001, and March 31, 2017. For electric, zero, or low-emission vehicles within this date range, the annual charge remains at £20. Similarly, cars producing 101-110g/km or 111-120g/km of CO2 continue to be taxed at £20 or £35 per year, respectively, with no changes this April.
However, for vehicles emitting higher levels of CO2, increases are in effect. For example, cars producing 121-130g/km will see their yearly rate rise from £165 to £170, while those emitting over 255g/km will be charged £790, up from £760.
VED Rates from April 2026 for Cars Registered 2001-2017
- Up to 100g/km – £20 (no change)
- 101-110g/km – £20 (no change)
- 111-120g/km – £35 (no change)
- 121-130g/km – £170
- 131-140g/km – £200
- 141-150g/km – £225
- 151-165g/km – £275
- 166-175g/km – £325
- 176-185g/km – £360
- 186-200g/km – £410
- 201-225g/km – £445
- 226-255g/km – £760
- 255+g/km – £790
This annual adjustment underscores the ongoing financial pressures on UK motorists, with the government using VED as a tool to incentivise lower emissions while generating revenue. Drivers are advised to check their vehicle's specific CO2 output to understand the exact impact on their budgets from next week onwards.
