Car Tax Changes April 2026:
Everything That Went Up
From 1 April 2026, car tax rates increased across all categories. The standard rate rose by £5 to £200. First year rates increased across all 13 CO2 bands. The expensive car supplement rose to £440.
Summary: Most drivers pay £5 more a year (£195 to £200). Petrol and diesel cars over the £40,000 line pay £20 more in years 2 to 6 (£620 to £640). The largest rise is in the top first-year band (over 255 g/km): £5,490 to £5,690.
Key Changes Summary
Standard Rate
+£5/year for most car owners
Expensive Car Supplement
+£15/year for owners of cars over £40,000
Premium Car Total (ICE, £40k+)
+£20/year for premium car owners in years 2-6
EV Supplement Threshold
EVs registered from 1 April 2025 with a list price of £40,001 to £50,000 avoid the £440 supplement
EV Standard Rate
+£5/year for electric vehicle owners
Historic Vehicle Cut-off
Cars built before 1 January 1986 can now apply for the historic vehicle exemption
Company Car BIK (EVs)
+1% on BIK rate = slightly higher monthly deduction
6-monthly Payment
+£5.50 per 6-monthly payment at standard rate
First Year Rate Changes: Before vs After April 2026
| Band | CO2 | Petrol / RDE2 diesel | Diesel (non-RDE2) | ||
|---|---|---|---|---|---|
| 2025/26 | 2026/27 | 2025/26 | 2026/27 | ||
| Band A | 0 g/km | £10 | £10 | £10 | £10 |
| Band B | 1-50 g/km | £110 | £115 | £130 | £135 |
| Band C | 51-75 g/km | £130 | £135 | £270 | £280 |
| Band D | 76-90 g/km | £270 | £280 | £350 | £365 |
| Band E | 91-100 g/km | £350 | £365 | £390 | £405 |
| Band F | 101-110 g/km | £390 | £405 | £440 | £455 |
| Band G | 111-130 g/km | £440 | £455 | £540 | £560 |
| Band H | 131-150 g/km | £540 | £560 | £1,360 | £1,410 |
| Band I | 151-170 g/km | £1,360 | £1,410 | £2,190 | £2,270 |
| Band J | 171-190 g/km | £2,190 | £2,270 | £3,300 | £3,420 |
| Band K | 191-225 g/km | £3,300 | £3,420 | £4,680 | £4,850 |
| Band L | 226-255 g/km | £4,680 | £4,850 | £5,490 | £5,690 |
| Band M | Over 255 g/km | £5,490 | £5,690 | £5,490 | £5,690 |
2026/27 rates are from DVLA form V149 (effective 1 April 2026). 2025/26 figures are the post-doubling rates that applied from 1 April 2025. Petrol column also covers RDE2 diesel; diesel column is non-RDE2 (taxed one band higher).
Next: Car Tax Rates From 1 April 2027
Budget 2026 (28 October 2026) uprated car tax by RPI for the 2027/28 tax year, to be legislated in Finance Bill 2026-27. From 1 April 2027 the standard rate for cars registered from 1 April 2017 rises from £200 to £210 a year, and every first-year and pre-2017 band rate goes up.
| First-year rate (2017+ cars) | 2026/27 | 2027/28 |
|---|---|---|
| 0 g/km | £10 | £10 |
| 1-50 g/km | £115 | £120 |
| 51-75 g/km | £135 | £140 |
| 76-90 g/km | £280 | £295 |
| 91-100 g/km | £365 | £380 |
| 101-110 g/km | £405 | £425 |
| 111-130 g/km | £455 | £475 |
| 131-150 g/km | £560 | £585 |
| 151-170 g/km | £1,410 | £1,475 |
| 171-190 g/km | £2,270 | £2,375 |
| 191-225 g/km | £3,420 | £3,575 |
| 226-255 g/km | £4,850 | £5,070 |
| Over 255 g/km | £5,690 | £5,950 |
| Annual rate (2001 to 2017 cars) | 2026/27 | 2027/28 |
|---|---|---|
| Band A (Up to 100 g/km) | £20 | £20 |
| Band B (101-110 g/km) | £20 | £20 |
| Band C (111-120 g/km) | £35 | £35 |
| Band D (121-130 g/km) | £170 | £180 |
| Band E (131-140 g/km) | £200 | £210 |
| Band F (141-150 g/km) | £225 | £235 |
| Band G (151-165 g/km) | £275 | £290 |
| Band H (166-175 g/km) | £325 | £340 |
| Band I (176-185 g/km) | £360 | £375 |
| Band J (186-200 g/km) | £410 | £430 |
| Band K (201-225 g/km) | £445 | £465 |
| Band L (226-255 g/km) | £760 | £795 |
| Band M (Over 255 g/km) | £790 | £825 |
| Pre-2001, 1549cc and below | £230 | £240 |
| Pre-2001, above 1549cc | £375 | £390 |
Source: GOV.UK Budget 2026 overview of tax legislation and rates, Annex A (published 28 October 2026, checked 1 November 2026). The first-year column is the petrol, RDE2 diesel and alternative-fuel rate; a diesel that does not meet RDE2 pays the next band up. The annex restates the expensive car supplement as £440 and does not give a separate 2027/28 figure. Electric cars also face a separate per-mile charge from 1 April 2028: see electric car tax.
What This Means for You
Average family car owner (petrol, under £40k)
Standard rate rises from £195 to £200. You pay £5 more per year. Not significant.
New car buyer (first year tax)
First year rates have increased across all bands. A Band H petrol (131-150 g/km) now costs £560 in year 1, up from £540. Buyers of high-emission cars see larger increases.
EV owner (under £50,000 list price)
Standard rate rises from £195 to £200. You pay £5 more per year. The raised supplement threshold (£40k to £50k) may actually save you money if your EV was previously over the threshold.
Premium car owner (over £40k ICE)
Total rate rises from £620 to £640 per year (standard £200 + supplement £440). An increase of £20 per year.
EV owner, list price £40,001 to £50,000
EVs registered from 1 April 2025 were brought into the supplement with a £40,000 threshold, but it rose to £50,000 from 1 April 2026, before any of them reached the second year when the supplement starts. An EV listed between £40,000 and £50,000 pays the £200 standard rate, not £640.
Classic car owner (1985 model)
If your car was manufactured before 1 January 1986, it now qualifies for the historic vehicle exemption. Apply at the Post Office for £0 VED.