April 2026 car tax rates as most pay more and some face £5,690 charge | Personal Finance | Finance
Tax is generally raised every year (Image: Yau Ming Low via Getty Images)
Car tax rates from April 1, 2026, have been announced and it signifies increased costs for the majority of motorists. Officially termed Vehicle Excise Duty, charges will rise in a matter of days.
Citing Gov.uk data, Confused.com revealed that the standard annual rate for most new petrol and diesel cars beyond the first year climbs to £200 from £195 in 2025/26. Zero-emission vehicles will pay £10 in the first year, then £200 thereafter.
The cost of the first year’s tax for all vehicles has risen – with the top band, determined by CO2 emission, increased by £200 to an eye-watering £5,690. High-value cars, costing more than £40,000, pay extra for as long as five years.
First year car tax rates for 2026/27
All cars are subject to the first year rate when purchased new and it’s based on CO2 emissions. The more a car pollutes, the higher the tax rate is.
The 2026/27 rates for petrol, diesel, alternative fuel and zero-emission cars registered on or after April 1, 2026, is below.
0 £10
Make sure your car is taxed (Image: Getty Images)
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Prices will differ for diesel cars that are tested to RDE standards. Cars move to the annual standard rates after the first year.
Car tax annual standard rates after first year
Most vehicles are subject to the standard rate from their second year, which will be £200 from April 1, 2026. Cars with a price tag exceeding £40,000 incur an additional supplement for the initial five years, currently set at £440. For zero-emission (electric) cars, this threshold rises to £50,000 from April 1, 2026.
Car tax costs for vehicles registered prior to April 2017
Vehicles registered between March 1, 2001, and April 1, 2017, have their Vehicle Excise Duty (VED) determined by CO2 emissions. The rates for 2026/27 are as follows:
Band, CO2 emissions (g/km), tax cost
Band K includes cars with a CO2 figure over 225g/km, but registered before March 23, 2006. If you’re unsure of your car’s band, visit the GOV.UK website.
Certain vehicles are exempt from VED. These include those over 40 years old, those used by a person with an eligible disability, those used by an organisation providing transport for people with an eligible disability, agricultural vehicles, and any vehicle with a Statutory Off-Road Notice (SORN) attached. Crucially, however, all vehicles must still be taxed, even if that tax is free of charge.
