Road Tax (VED) Bands Explained for UK Car Buyers in 2026

Vehicle Excise Duty (VED) — commonly called road tax — is an annual charge every UK car owner must pay unless their vehicle is exempt or declared off-road (SORN). The amount you pay depends on when your car was first registered, its CO2 emissions, and its list price when new.

The system changed significantly in April 2017, and again in April 2025 when electric vehicles lost their £0 rate. If you’re buying a used car in 2026, understanding VED bands can save you hundreds of pounds per year. This guide breaks down exactly how it works.

1. How VED Works: Two Systems

The UK has two VED systems running in parallel, depending on when your car was first registered:

Cars registered on or after 1 April 2017: You pay a first-year rate based on CO2 emissions (which can be very high), then a flat standard rate from year two onwards. This is the system most used car buyers will encounter.

Cars registered before 1 April 2017: You pay an annual rate based on CO2 emissions every year, with 13 bands from A (£0) to M (£695). Lower-emission cars in the older system can be very cheap to tax.

2. 2026/27 First-Year Rates by CO2 Band

For cars registered on or after 1 April 2017, the first-year rate is based on CO2 emissions. This is paid only once (by the first registered keeper). If you’re buying a used car, you’ll pay the standard rate instead.

Rates shown are for 2025/26 tax year. Diesel cars that don’t meet RDE2 standards pay the rate one band higher.

3. The Standard Flat Rate (£190)

From the second year of registration onwards, almost all cars registered after April 2017 pay the same flat rate: £190 per year. It doesn’t matter whether your car is a tiny city car emitting 95 g/km or a large SUV emitting 200 g/km — the annual rate is the same.

This is why VED is less of a running cost differentiator for post-2017 cars compared to the older system. The main financial impact of emissions is in the first-year rate only.

You can pay annually (£190), by six-monthly direct debit (£99.75 x 2 = £199.50), or monthly direct debit (£16.63 x 12 = £199.50). Paying annually in a single payment saves you £9.50 per year.

4. Expensive Car Supplement (£410/year for 5 Years)

If a car had an original list price (including factory options and delivery charges) over £40,000 when new, it attracts the Expensive Car Supplement: an additional £410 per year on top of the standard rate, payable from years 2 through 6 of the car’s life.

This means a qualifying car pays £190 + £410 = £600 per year for five years, then drops to £190 from year seven onwards.

This is particularly relevant for used car buyers. If you’re looking at a 3-year-old BMW, Mercedes, or Tesla, check whether its original list price triggered the supplement — you could be paying £600/year instead of £190 for the next two years.

5. EV Road Tax Changes (From April 2025)

Before April 2025, zero-emission vehicles paid £0 in road tax. That changed. From 1 April 2025, EVs now pay:

• First-year rate: £10 (the lowest band)
• Standard rate: £190 per year from year two
• Expensive Car Supplement: £410/year for 5 years if list price was over £40,000

Since many EVs had list prices above £40,000 (Tesla Model 3, BMW iX, Polestar 2, etc.), a significant number of second-hand EVs now attract the full £600/year rate. This is an important consideration when calculating total EV running costs.

6. How to Check VED Before Buying

Before you buy any used car, check its VED status and rate using the free DVLA service:

1. Go to gov.uk/check-vehicle-tax
2. Enter the vehicle registration number
3. You’ll see the current tax status, the annual rate, and the expiry date

To find the CO2 emissions (which determine the band for pre-2017 cars), check the V5C logbook or use the DVLA’s vehicle enquiry service at gov.uk/get-vehicle-information-from-dvla.

7. Historic Vehicles (Pre-1977 Exempt)

Vehicles manufactured before 1 January 1977 are exempt from VED entirely. You still need to apply for free tax through the DVLA (it won’t happen automatically), but you pay £0.

The rolling exemption date moves forward each year. From April 2027, vehicles manufactured before 1 January 1978 will also become exempt. This is a significant perk for classic car enthusiasts.

8. SORN: When You Don’t Need to Pay

If your car isn’t being driven or kept on a public road, you can make a Statutory Off Road Notification (SORN). While SORNed:

• You pay no road tax
• You’ll receive a refund for any full remaining months of VED
• You cannot drive or park the car on any public road (even briefly)
• The car must be kept on private land (driveway, garage, private field)

SORN is useful if you’re storing a car, doing a long restoration project, or going abroad for an extended period. You can SORN online at gov.uk/sorn-statutory-off-road-notification.

Final Thoughts

For most post-2017 used car buyers, VED is a flat £190 per year — straightforward and predictable. But watch out for the Expensive Car Supplement if the car originally listed above £40,000, and be aware that EVs now pay the same standard rate.

If you’re looking at pre-2017 cars, VED varies significantly by CO2 band. Always check the rate before you buy — the difference between a low-emission and high-emission car can be £500+ per year.

VED rates shown are for the 2025/26 tax year. Rates may change in future budgets. Always verify the current rate at gov.uk/vehicle-tax.

Related reading: True Cost of Owning a Car in the UK | Cheapest Cars to Run in the UK