April 2026 Car Tax Rates Officially Confirmed by Government
The Department for Transport has now published the definitive Vehicle Excise Duty (VED) rates that will apply to drivers across the United Kingdom from April 2026. This announcement brings substantial changes, including a notable £790 'tax trap' for vehicles over twenty years old and a massive £5,690 levy for the highest-emission models.
Standard Rates and Payment Options
From this week, the standard annual tax rate for all petrol, diesel, or hybrid cars registered after 2017 increases to £200. Owners of brand-new electric cars under one year old will also be subject to this flat £200 rate for the first time. If motorists choose to pay in twelve monthly instalments via Direct Debit, the total cost rises to £210.
Additionally, vehicles with an original list price exceeding £40,000—or £50,000 for electric cars—will incur the Expensive Car Supplement, commonly known as the luxury car tax. This adds £425 to the annual VED bill for a period of five years, totalling an extra £2,125 over that timeframe.
First-Year Tax Payment Based on CO2 Emissions
The initial tax payment when registering a vehicle is determined by its CO2 emissions, fuel type, and registration date. Diesel cars that do not meet the Real Driving Emissions 2 (RDE2) standard for nitrogen oxide emissions face higher rates. Motorists can check with their manufacturer to confirm if their vehicle complies with RDE2.
A comprehensive table outlines the first tax payment rates:
- 0g/km: £10 for RDE2-compliant diesel, petrol, alternative fuel, and zero-emission cars; £10 for other diesel cars
- 1-50g/km: £115 vs. £135
- 51-75g/km: £135 vs. £280
- 76-90g/km: £280 vs. £365
- 91-100g/km: £365 vs. £405
- 101-110g/km: £405 vs. £455
- 111-130g/km: £455 vs. £560
- 131-150g/km: £560 vs. £1,410
- 151-170g/km: £1,410 vs. £2,270
- 171-190g/km: £2,270 vs. £3,420
- 191-225g/km: £3,420 vs. £4,850
- 226-255g/km: £4,850 vs. £5,690
- Over 255g/km: £5,690 for all categories
Subsequent Tax Payments and High-Emission Models
For the second tax payment onwards, the rates simplify:
- Single 12-month payment: £200
- Single 12-month payment by Direct Debit: £200
- Total of 12 monthly payments by Direct Debit: £210
- Single 6-month payment: £110
- Single 6-month payment by Direct Debit: £105
A total of 59 models from 24 manufacturers, including prominent brands like Ford, BMW, Mercedes, Lamborghini, and Rolls-Royce, will be hit with the maximum £5,690 charge from April 1. This follows major VED rate adjustments implemented last year, which saw some vehicles face a £2,745 increase.
The Government raised first-year VED charges for petrol and diesel cars from April 2025, affecting purchasers of new vehicles before rates drop to the standard level. Notable models in the over 255 g/km category include the Lamborghini Urus, BMW X6 M, Ferrari Purosangue, Rolls-Royce Ghost, and Porsche 911 Turbo.
Historical Rates and Luxury Car Tax Details
For cars registered between March 1, 2001, and March 31, 2017, tax bands based on CO2 emissions apply, ranging from £20 for up to 100g/km to £790 for over 255g/km. Vehicles registered before March 2001 are taxed based on engine capacity bands instead of emissions.
The VED premium vehicle tax supplement targets cars with a new purchase price above £40,000, including added features. This results in an additional £425 annually from years one to six, totalling £2,550. From April, the threshold for this luxury car tax increases to £50,000 for electric vehicles, while remaining at £40,000 for petrol and diesel models.
Future Changes: Mileage Levy for Electric Vehicles
Starting in April 2028, electric vehicles will face a new 'mileage levy' to offset lost fuel duty revenue. Battery electric vehicles will pay approximately 3p per mile, while plug-in hybrids will pay £0.015 per mile. The Chancellor stated this will help fund road maintenance, with charges increasing annually in line with the Consumer Price Index.
Currently, no implementation system has been outlined, but projections suggest it could add around £300 for every 10,000 miles driven in an electric vehicle.
Exemptions and Classic Car Rules
The 40-year classic car tax rule remains unchanged, meaning vehicles over four decades old classified as 'historic' are exempt from VED. Similarly, road tax exemptions for disabled drivers continue unaffected by these new rates.
The Expensive Car Supplement, introduced in 2017, imposes an extra £425 yearly for five years on new cars costing over £40,000. The Budget has raised this limit to £50,000 for electric vehicles, providing relief for EV buyers below that price point.
