Motorists face higher car tax bills from April 1, 2026, with fresh rates now confirmed for most drivers. Vehicle Excise Duty, as it's formally known, will climb in just a matter of days.

According to Gov.uk data cited by Confused.com, the standard yearly charge for most new petrol and diesel vehicles beyond the initial year will rise to £200, up from £195 in 2025/26. Zero-emission models will be charged £10 in year one, before jumping to £200 thereafter.

First-year tax costs for all vehicles have gone up - with the highest band, calculated by CO2 output, surging by £200 to a staggering £5,690. Premium vehicles valued above £40,000 face additional charges for up to five years.

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First year car tax rates for 2026/27

Every new car is liable for the first year rate, which is determined by CO2 emissions. The greater the pollution, the steeper the tax bill.

The 2026/27 charges for petrol, diesel, alternative fuel and zero-emission vehicles registered from April 1, 2026, are listed below.

CO2 (g/km) range and tax cost

0 £10

1-50 £115

51 - 75 £135

76 - 90 £280

91 - 100 £365

101 - 110 £405

111 - 130 £455

131 - 150 £560

151 - 170 £1,410

171 - 190 £2,270

191 - 225 £3,420

226 - 255 £4,850

256+ £5,690

Rates will vary for diesel vehicles meeting RDE standards. Following the first year, cars transition to the standard annual rates.

Annual standard car tax rates after first year

The majority of vehicles are liable for the standard rate from their second year of registration. From April 1, 2026, that figure will stand at £200. Motors with a price tag exceeding £40,000 face an additional levy for the initial five years, currently set at £440. For zero-emission (electric) vehicles, this price threshold rises to £50,000 from April 1, 2026.

Vehicle tax charges for motors registered before April 2017

Vehicles registered between March 1, 2001, and April 1, 2017, have their VED calculated according to CO2 emissions. The rates for 2026/27 are outlined below.

Band, CO2 emissions (g/km), tax cost

A up to 100 £20

B 101 - 110 £20

C 111 - 120 £35

D 121 - 130 £170

E 131 - 140 £200

F 141 - 150 £225

G 151 - 165 £275

H 166 - 175 £325

I 176 - 185 £360

J 186 - 200 £410

K 201 - 225 £445

L 226 - 255 £760

M over 255 £790

Band K covers vehicles with a CO2 output exceeding 225g/km, but registered prior to March 23, 2006. If you're unsure which band applies to your motor, check the GOV.UK website.

Certain vehicles are exempt from VED payments. These include those aged over 40 years, those driven by someone with an eligible disability, those operated by organisations providing transport for people with an eligible disability, agricultural vehicles and any vehicle with a Statutory Off-Road Notice (SORN) in place. Crucially, however, vehicles must still be taxed, even when that tax carries no charge.