Owners of petrol and diesel cars registered between 2001 and 2017 have been hit with new car tax charges in 2026, with Vehicle Excise Duty (VED) fees rising by between £5 and £30 from April 1. The increases, applied in line with inflation, vary by emissions band, with the dirtiest vehicles facing the steepest hikes.
Biggest Increases for High-Emission Vehicles
Cars in tax band M, which emit more than 255g/km of CO2, now cost £790 to tax, up £30 from £760. Vehicles in band L (226-255g/km) rose by £25 to £760. Bands I, J, and K saw a £15 increase, while bands F, G, and H rose by £10. Lower-emission bands D and E increased by only £5.
Electric and hybrid models in tax bands A, B, and C are unaffected, with bands A and B remaining at £20 and band C at £35.
Government Confirms RPI-Linked Uprating
HMRC stated: “As announced at Budget 2025, the Government will introduce legislation in Finance Bill 2025-26 to uprate Vehicle Excise Duty rates for cars, vans and motorcycles in line with the Retail Price Index (RPI) for 2026 to 2027. This will take effect from 1 April 2026.”
Full VED Rates for Cars Registered 2001-2017
- A (up to 100g/km): £20 – no change
- B (101-110g/km): £20 – no change
- C (111-120g/km): £35 – no change
- D (121-130g/km): £170 – £5 increase
- E (131-140g/km): £200 – £5 increase
- F (141-150g/km): £225 – £10 increase
- G (151-165g/km): £275 – £10 increase
- H (166-175g/km): £325 – £10 increase
- I (176-185g/km): £360 – £15 increase
- J (186-200g/km): £410 – £15 increase
- K (201-225g/km): £445 – £15 increase
- L (226-255g/km): £760 – £25 increase
- M (256g/km+): £790 – £30 increase
Drivers are advised to check their vehicle's tax band and budget for the new rates, which apply to all cars registered between 2001 and 2017.
