Car Tax Rates 2026/27: What Every UK Driver Pays from April

Vehicle Excise Duty (VED) — the official name for road tax — is one of those costs every UK car owner pays but few fully understand. Rates changed significantly from April 2025, with electric vehicles losing their zero-rate exemption for the first time.

Whether you’re buying a new car, shopping for a used one, or just wondering why your direct debit went up, this guide breaks down exactly what you’ll pay in 2026/27 and what’s coming next.

1. How VED Works: Two Rates, One Tax

VED for cars registered after 1 April 2017 works on a two-tier system:

• First-year rate — based on your car’s official CO2 emissions (g/km). This is the rate you pay when you first register the car. Higher emissions mean a higher first-year charge, ranging from £10 to £2,745
• Standard rate — a flat annual rate of £190 per year from the second year onwards, regardless of emissions. Every petrol, diesel, hybrid, and electric car pays the same

For cars registered before 1 April 2017, VED is based entirely on CO2 emissions with different bands (A to M). These rates are fixed for the life of the car.

2. First-Year VED Rates 2026/27 (By CO2 Band)

These rates apply to new cars registered from 1 April 2025. The first-year rate is included in the on-the-road price at the dealership.

After the first year, all cars drop to the flat standard rate of £190 regardless of CO2 output.

3. The Standard Rate: £190 for Most Cars

From the second year of registration onwards, the vast majority of UK cars pay the same flat standard rate of £190 per year. This applies to petrol, diesel, hybrid, and (since April 2025) electric vehicles alike.

You can pay this:

• Annually — £190 in one payment
• By direct debit (monthly) — 12 monthly payments with a 5% surcharge, totalling £199.50/year
• Six-monthly — two payments with a 10% surcharge on each half

The standard rate has risen steadily over the years. It was £165 in 2023/24, £180 in 2024/25, and £190 from April 2025.

4. EVs Now Pay Road Tax

The biggest change from April 2025 was the end of the free ride for electric vehicles. Before that date, battery electric vehicles (BEVs) paid £0 in VED. Now they pay:

• First-year rate: £10 (the lowest band)
• Standard rate from year 2: £190/year — the same as every other car
• Expensive Car Supplement: £410/year extra if the list price exceeds £40,000 (many EVs are caught)

This means a Tesla Model 3 Long Range (list price over £40,000) now costs £600/year in road tax for years 2 to 6, compared to £0 before April 2025.

5. The Expensive Car Supplement

Cars with an original list price over £40,000 when new pay an additional £410 per year on top of the standard rate. This applies for five years, from the second to the sixth year of registration.

The threshold is based on the original manufacturer’s list price including options — not what you paid. Even if you buy a five-year-old car for £15,000, you could still be paying the supplement if the original list price was over £40,000.

6. How to Check What You’ll Pay

There are several free ways to check your car tax rate:

• Gov.uk vehicle tax calculator — enter your car details at gov.uk/calculate-vehicle-tax-rates to see the exact amount
• Check vehicle tax status — enter any registration number at gov.uk/check-vehicle-tax to see if a car is currently taxed
• Your V5C logbook — shows the CO2 emissions and VED band for your specific car
• DVLA vehicle enquiry — free online check that shows tax status, MOT date, and more

7. Historic Vehicles: Free Road Tax

Vehicles manufactured before 1 January 1977 are exempt from VED entirely. You still need to apply for a free tax disc (it’s £0, but you must register it), and the vehicle must still be insured and have a valid MOT if it’s driven on public roads.

The historic vehicle exemption rolls forward each year. From April 2027, vehicles built before 1 January 1978 will become exempt.

8. What’s Coming: Pay-Per-Mile eVED from 2028

The government has confirmed plans to introduce electronic Vehicle Excise Duty (eVED) from April 2028. This pay-per-mile system is designed to replace lost fuel duty revenue as the UK fleet electrifies.

Key points:

• Initially targeting new electric vehicles, with a phased rollout to all cars
• Likely to use telematics or annual odometer readings to calculate mileage
• Estimated rates of 2–5p per mile (details still being finalised)
• The current flat-rate VED system will eventually be phased out

We cover this in detail in our dedicated guide: Pay-Per-Mile Road Tax (eVED): What UK Drivers Need to Know About 2028.

Final Thoughts

VED is one of those fixed costs that you can’t avoid but can plan for. Understanding the difference between first-year rates and the standard rate, knowing whether you’ll be hit by the Expensive Car Supplement, and keeping an eye on the move to pay-per-mile from 2028 will help you budget properly.

If you’re buying a used car, the tax cost is straightforward: £190/year standard rate, plus £410/year if the original list price was over £40,000 and the car is less than six years old. Factor this into your running costs alongside insurance, fuel, and MOT.

VED rates shown are for the 2025/26 and 2026/27 tax years. Rates may change in future budgets. Always check gov.uk for the latest figures.