Older motorists across the United Kingdom are set to be hit with increased car tax charges from April 2026, as the government confirms new Vehicle Excise Duty (VED) rates. The changes will see standard annual fees rise, affecting the vast majority of petrol, diesel, and electric vehicle owners.
Widespread Impact on Drivers
According to the newly confirmed regulations, senior road users will face the same increased charges as all other drivers, with no age-related discounts or concessions available. This means fit and healthy pensioners will need to budget for higher motoring costs alongside younger drivers.
The standard VED rate for vehicles registered after 2017 is expected to climb from £195 to £200 per year. Meanwhile, those purchasing brand-new petrol and diesel cars will feel the most significant impact, with first-year VED charges rising by £200 from £5,490 to £5,690.
Historical Vehicles and Exemptions
Certain vehicle categories will remain exempt from these increased charges. Drivers of vintage automobiles registered over forty years ago will continue to avoid yearly VED payments entirely. Additionally, vehicles used by disabled drivers maintain their exemption from vehicle tax obligations under the updated regulations.
This creates a notable contrast where disabled motorists won't need to pay road usage fees, while many older, able-bodied drivers will face the full brunt of the increased charges.
Detailed Rate Increases
The tax changes will affect vehicles across multiple categories:
- Older models registered before 1 March 2001 will see increases, with larger vehicles exceeding 1549cc experiencing fee rises from £360 to £375 annually
- Smaller vehicles with engines under 1549cc will see charges increase from £220 to £230 per year
- Electric vehicles registered before 2017 will continue paying just £20 annually for road usage
- First-year VED expenses for zero-emission cars will remain at £10 per year
These adjustments represent the yearly inflation-linked rise that typically increases VED expenses every twelve months, tied to the Retail Price Index (RPI).
Government Announcement and Timing
HM Revenue and Customs (HMRC) announced the VED rate increases toward the end of last year, following the publication of Rachel Reeves' Autumn Budget. Officials confirmed that legislation would be introduced in Finance Bill 2025-26 to uprate Vehicle Excise Duty rates for cars, vans, and motorcycles in line with RPI for the 2026 to 2027 period.
The statement clarified: "This will take effect from 1 April 2026," giving drivers just a few months to prepare for the increased financial burden.
While electric vehicle drivers represent one of the few groups facing minimal impact from the 2026 tax hikes, the majority of motorists—including older drivers without exemptions—will need to account for higher annual costs when the new rates take effect this spring.
