Motorists face higher car tax bills from April 1, 2026, with fresh rates now confirmed for most drivers. Vehicle Excise Duty (VED) will climb in just a matter of days, according to Gov.uk data cited by Confused.com.
The standard yearly charge for most new petrol and diesel vehicles beyond the initial year will rise to £200, up from £195 in 2025/26. Zero-emission models will be charged £10 in year one, before jumping to £200 thereafter.
First-year tax costs for all vehicles have gone up, with the highest band, calculated by CO2 output, surging by £200 to a staggering £5,690. Premium vehicles valued above £40,000 face additional charges for up to five years. Every new car is liable for the first-year rate, which is determined by CO2 emissions: the greater the pollution, the steeper the tax bill.
From April 1, 2026, the standard rate for most vehicles from their second year of registration will be £200. Motors with a price tag exceeding £40,000 face an additional levy for the initial five years, currently set at £440. For zero-emission (electric) vehicles, this price threshold rises to £50,000 from April 1, 2026.
Vehicles registered between March 1, 2001, and April 1, 2017, have their VED calculated according to CO2 emissions. Band K covers vehicles with a CO2 output exceeding 225g/km, but registered prior to March 23, 2006. Certain vehicles are exempt from VED payments, including those aged over 40 years, those driven by someone with an eligible disability, agricultural vehicles, and any vehicle with a Statutory Off-Road Notice (SORN) in place. However, vehicles must still be taxed, even when that tax carries no charge.
