Vehicle Excise Duty (VED) Changes 2026: New Car Tax Rates, Road Tax Bands And What You'll Pay

19th June 2026

Vehicle Excise Duty (VED), often referred to as road tax or car tax, changed for many UK drivers in 2026. The latest updates affect petrol, diesel, hybrid and electric vehicles, with some motorists facing higher annual costs depending on their vehicle's emissions, registration date and list price.

Understanding the latest VED rates can help drivers budget more accurately, compare vehicle running costs and avoid unexpected charges when buying a new or used car.

In this guide, you'll find the latest Vehicle Excise Duty changes, car tax bands, road tax rates and electric vehicle tax rules for 2026.

What Changed To Vehicle Excise Duty And Road Tax In 2026?

The 2026 Vehicle Excise Duty changes introduced updated tax rates across several vehicle categories and continued the move towards a broader taxation system that includes electric vehicles.

Key changes include:

Change	What It Means
Updated annual VED rates	Standard flat rate has increased to £200 per year for most cars.
Electric vehicle taxation	EV owners are now required to pay a £10 first-year rate and the standard £200 rate from year two.
First-year rate updates	New cars face revised charges based on CO₂ emissions up to £5,690.
Expensive Car Supplement rules	Higher-value vehicles incur an additional £440 annual charge. The threshold is £40,000 for internal combustion engines and £50,000 for EVs.
Hybrid vehicle tax changes	Previous tax advantages, such as the £10 alternative fuel discount, have been removed.

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What Is Vehicle Excise Duty (VED)?

Vehicle Excise Duty is a tax charged on most vehicles used or kept on public roads in the UK. The amount payable depends on several factors, including:

Vehicle registration date
CO₂ emissions
Fuel type
Manufacturer list price
Vehicle tax classification

Although many motorists still use the term road tax, the official government name remains Vehicle Excise Duty (VED).

How Much Is Road Tax In 2026?

Road tax rates in 2026 vary significantly depending on the vehicle. The amount payable is influenced by:

Whether the vehicle is petrol, diesel, hybrid or electric
When it was first registered
Its CO₂ emissions rating
Whether the Expensive Car Supplement applies

Because VED rates vary between vehicles, drivers should always check the latest official figures before purchasing or taxing a vehicle.

What Will My Car Tax Be In 2026?

Your annual car tax bill depends on your vehicle's specifications and tax classification.

Typical examples include:

Vehicle Type	Typical Tax Position
Small petrol hatchback	Standard annual VED rate (£200)
Family SUV	Standard VED plus any applicable supplements
Hybrid vehicle	Subject to standard VED rate (£200) and emissions-based first-year rates
Electric vehicle	Subject to a £10 first-year rate and standard £200 rate thereafter
Premium vehicle above threshold	Standard VED plus £440 Expensive Car Supplement (Total £640)

Checking your registration details and emissions information remains the quickest way to estimate future tax costs.

New Vehicle Excise Duty Rates And Road Tax Rates For 2026

Vehicle Excise Duty rates are generally divided into three categories:

First-year rates for newly registered vehicles
Standard annual VED rates
Additional charges for qualifying higher-value vehicles

Vehicle Excise Duty Rates 2026

The following table outlines the standard annual renewal rates for cars registered on or after 1 April 2017:

Tax Class / Payment Scenario	Petrol, Diesel, Hybrid & Electric Cars
Standard Annual Rate (Single 12-month payment)	£200
Standard 12-month payment by Direct Debit	£200
Total payable by 12 monthly Direct Debit installments	£210
Single 6-month payment	£110
Single 6-month payment by Direct Debit	£105

This section includes the latest annual Vehicle Excise Duty rates and first-year charges so drivers can compare vehicle tax costs accurately.

Car Tax Bands And Vehicle Excise Duty Rates For 2026

Car tax bands continue to be linked largely to vehicle CO₂ emissions, particularly during the first year of registration. Vehicles with lower emissions generally attract lower first-year charges, while higher-emission vehicles face increased tax rates.

Car Tax Bands 2026 (First-Year Rates)

The table below details the official first-year VED rates (commonly known as showroom tax) based on tailpipe carbon emissions:

CO₂ Emissions (g/km)	Petrol, Alternative Fuel & Zero-Emission (EV) Cars	All Other Diesel Cars (Not meeting RDE2)
0g/km	£10	£10
1 to 50g/km	£115	£135
51 to 75g/km	£135	£280
76 to 90g/km	£280	£365
91 to 100g/km	£365	£405
101 to 110g/km	£405	£455
111 to 130g/km	£455	£560
131 to 150g/km	£560	£1,410
151 to 170g/km	£1,410	£2,270
171 to 190g/km	£2,270	£3,420
191 to 225g/km	£3,420	£4,850
226 to 255g/km	£4,850	£5,690
Over 255g/km	£5,690	£5,690

Understanding how road tax bands work can be particularly useful when comparing vehicles before purchase, as emissions can have a significant impact on first-year Vehicle Excise Duty costs.

UK Electric Car Road Tax Changes In 2026

Electric vehicles are no longer automatically exempt from Vehicle Excise Duty. Depending on the vehicle's registration date and list price, EV owners may now be required to pay:

Standard annual Vehicle Excise Duty (£200)
Expensive Car Supplement where applicable (£440)

Which Electric Cars Are Affected?

Vehicle Type	Tax Position
Existing EVs	Subject to standard £200 annual VED rate
New EVs	Pay £10 in year one, moving to the £200 standard rate from year two
Higher-value EVs	Subject to the £440 Expensive Car Supplement if the original list price is over £50,000

As electric vehicle adoption grows, understanding EV road tax rules is becoming increasingly important when comparing running costs with petrol, diesel and hybrid alternatives.

Also Read: Electric Car Road Tax 2026

Hybrid Car Tax Changes And Road Tax Rules

Hybrid vehicles continue to sit between conventional petrol or diesel vehicles and fully electric cars from a taxation perspective. Depending on the model, emissions output and registration date, hybrid drivers may see different tax outcomes than in previous years.

Hybrid Vehicle Tax Examples

Vehicle Type	Tax Position
Mild Hybrid	Subject to standard £200 VED rate + emissions-based first-year rate
Full Hybrid	Subject to standard £200 VED rate; the previous £10 alternative fuel discount has been removed
Plug-In Hybrid	Pays standard £200 rate from year two; first-year rate depends on exact CO₂ bands

Anyone considering a hybrid vehicle should review current Vehicle Excise Duty rates alongside fuel savings and overall running costs before making a decision.

Expensive Car Supplement And Additional VED Charges

Some vehicles are subject to an additional annual charge if their original list price exceeds the government threshold. The Expensive Car Supplement can apply regardless of whether the vehicle is:

Petrol
Diesel
Hybrid
Electric

The Expensive Car Supplement is fixed at £440 per year for 5 years (from the second year of registration). However, the price thresholds differ:

Petrol, Diesel & Hybrids: Applies to vehicles with a list price over £40,000.
Electric Vehicles (EVs): Applies to vehicles with a list price over £50,000 (increased from £40,000 on 1 April 2026).

Drivers should check:

Original list price
Registration date
Current supplement rules

A vehicle's purchase price can therefore have a direct impact on annual taxation costs beyond standard Vehicle Excise Duty rates.

Also Check: Luxury Car Tax UK

Vehicle Excise Duty Changes For Vans

Vehicle Excise Duty rules for vans differ from those applied to passenger cars. Owners of light commercial vehicles should review the latest rates covering:

Light Goods Vehicles (under 3,500kg registered on/after 1 March 2001): Standard annual flat rate is £360 (including electric vans).
Euro 4 / Euro 5 Light Goods Vehicles: Standard rate is £140.

Businesses operating fleets may also wish to monitor future VED changes as taxation policies continue to evolve.

How To Check Your Vehicle Tax Rate

The easiest way to check your current Vehicle Excise Duty rate is through the DVLA using your vehicle registration number.

You'll typically need:

Vehicle registration number
Registration date
Fuel type
CO₂ emissions information

This allows you to confirm your current tax status and understand exactly how much road tax applies to your vehicle.

Vehicle Excise Duty And Road Tax FAQs

Vehicle Excise Duty is the tax paid on most vehicles used or kept on public roads in the UK.

The amount payable depends on a vehicle's emissions, fuel type, registration date, value and tax classification. For most post-2017 cars, the standard flat renewal rate is £200 per year.

Yes. Electric vehicles pay a first-year rate of £10 and then move onto the standard flat rate of £200 from the second year onwards.

You can check your car tax band using DVLA records or your V5C registration document.

It depends on the vehicle and its emissions during the first year. From the second year onwards, hybrids pay the same £200 standard flat rate as petrol and diesel vehicles, as the previous £10 alternative fuel discount has been discontinued.

You can use the DVLA vehicle enquiry service and enter your registration number to view the current Vehicle Excise Duty position and applicable tax rate.