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Millions of drivers hit with car tax increase from next week – see new rates

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Road tax – known as Vehicle Excise Duty (VED) – is a legal requirement in the UK and it typically rises every April

Millions of drivers will be hit with higher car tax rates from next week.

Road tax – known as Vehicle Excise Duty (VED) – is a legal requirement in the UK. It generally increases every April in line with inflation, and this year is no exception.

If you buy a new car, you pay what is known as the showroom tax for your first year. If the vehicle emits between 1-50g/km of CO2, the first-year car tax rate after April 2026 will rise from £110 to £115.

For a vehicle that emits over 255g/km of CO2, the first-year car tax rate will increase from £5,490 to £5,690. The first-year car rate for new electric cars that produce zero emissions remains at £10.

These rates only apply for the first year you own the car. From the second year onward, you pay the standard car tax rate, which is rising from £195 to £200.

First-year car tax rates from April 2026

  • 0g/km – £10 (no change)
  • 1-50g/km – £115
  • 51-75g/km – £135
  • 76-90g/km – £280
  • 91-100g/km – £365
  • 101-110g/km – £405
  • 111-130g/km – £455
  • 131-150g/km – £560
  • 151-170g/km – £1,410
  • 171-190g/km – £2,270
  • 191-225g/km – £3,420
  • 226-255g/km – £4,850
  • 255+g/km – £5,690

There are different car tax rates for cars that were registered between March 1, 2001 and March 31, 2017. If you have an electric, zero or low emission cars that was registered between these dates, you pay £20 a year.

If your car produces between 101-110g/km of CO2, or between 111-120g/km of CO2, you’re charged £20 or £35 a year in car tax, respectively.

These rates won’t be changing from this April – but for cars that produce more CO2 than these levels, the rate of car tax is going up.

For example, if your car produces between 121-130g/km of CO2, the yearly rate for car tax is rising from £165 to £170, while a vehicle that produces over 255g/km of CO2 will be charged £790 from April, up from its current rate of £760.

Car tax from April 2026 for cars registered between March 1, 2001 and March 31, 2017

  • Up to 100g/km – £20 (no change)
  • 101-110g/km – £20 (no change)
  • 111-120g/km – £35 (no change)
  • 121-130g/km – £170
  • 131-140g/km – £200
  • 141-150g/km – £225
  • 151-165g/km – £275
  • 166-175g/km – £325
  • 176-185g/km – £360
  • 186-200g/km – £410
  • 201-225g/km – £445
  • 226-255g/km – £760
  • 255+g/km – £790



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