TL;DR: As of 1 April 2026, UK car tax (VED) rates have risen, with the standard annual rate now at £200. Drivers buying new high-emission cars face a steep ‘showroom tax’ of up to £5,690, but there’s good news for electric vehicle (EV) buyers – the Expensive Car Supplement threshold has increased to £50,000, giving EV owners a welcome tax break.
UK car tax hike confirmed: New rates hit as EV owners win major relief
Key Facts
- £5,690: New first-year ‘showroom tax’ for cars emitting over 255g/km of CO₂ – up by £200.
- £50,000: New Expensive Car Supplement threshold for EVs (previously £40,000).
- £200: Updated standard annual Vehicle Excise Duty (VED) rate for most cars registered between 2017 and 2026.
- 1 April 2026: The date UK’s latest inflation-linked car tax increases came into effect.
f you want to check how these changes affect your own vehicle, use Regit’s free car tax check to see your tax status, expiry date and whether your car is taxed or SORN.
What’s changed?
From today (1 April 2026), the government’s latest Vehicle Excise Duty (VED) updates officially kick in. The changes aim to keep rates in line with inflation, but it’s clear there’s a bigger plan at play – one that rewards low-emission driving while turning up the pressure on gas guzzlers.
This year’s update also offers a glimpse of what’s ahead, with an even bigger car tax hike in 2026 expected to shake up how electric vehicles are taxed in the UK.
You can quickly check your car tax online with Regit to confirm your current status and avoid any surprises.
‘Showroom tax’ rises for high-emission cars
Buying a new car in 2026? The first cost to bite is the first-year VED, or ‘showroom tax’. This one-off payment, rolled into a car’s on-the-road price, has seen another steep rise for less eco-friendly models.
For cars producing over 255g/km of CO2, the first-year tax has jumped by £200, bringing the total to an eye-watering £5,690. The government’s message is clear: high emissions now come with high costs.
Even plug-in hybrids (PHEVs) aren’t entirely off the hook. Models emitting under 50g/km now pay £115 for the first year. Only zero-emission EVs escape the hit, still enjoying a token £10 first-year charge.
VED FIRST YEAR 'SHOWROOM TAX' RATES FOR CARS REGISTERED AFTER 1 APRIL 2026
| Emissions (g/km) CO2 | First-year VED for new petrol, diesel, hybrid and electric cars | Increase |
|---|---|---|
| 0 | £10 | £0 |
| 1-50 | £115 | £5 |
| 51-75 | £135 | £5 |
| 76-90 | £280 | £10 |
| 91-100 | £365 | £15 |
| 101-110 | £405 | £15 |
| 111-130 | £455 | £15 |
| 131-150 | £560 | £20 |
| 151-170 | £1,410 | £50 |
| 171-190 | £2,270 | £80 |
| 191-225 | £3,420 | £120 |
| 226-255 | £4,850 | £170 |
| Over 255 | £5,690 | £200 |
EV buyers get much-needed relief
Here’s where things get better. Starting April 2026, the government finally raised the Expensive Car Supplement (ECS) threshold for electric cars from £40,000 to £50,000.
Previously, any car – petrol, diesel, or electric – costing over £40k was slapped with an extra £440 a year in tax for five years. That was a big problem for EV buyers, since many popular models hover just above that price point.
Now, with the new £50k limit, many electric cars that were once penalised are exempt, saving drivers up to £2,200 over five years.
However, keep in mind that this update only applies to fully electric cars. Petrol, diesel, and hybrids still face the same £40,000 threshold and corresponding £640 annual bill (£200 standard + £440 supplement).
What it means for your current car
For most drivers with cars registered between April 2017 and early 2026, the standard tax has nudged from £195 to £200, a relatively small increase but one worth noting when your renewal reminder comes through.
If your car is older (registered between 2001 and 2017) your rate still depends on the CO2 letter bands. These have also been adjusted for inflation:
- Bands A & B: Around £20 per year.
- Band G: Roughly £275 annually for a typical family car.
- Band M: Up to £790 for the highest-emission models.
VED FOR CARS REGISTERED BETWEEN 1 MARCH 2001 AND 31 MARCH 2017
| VED Band | CO2 emissions (g/km) | Standard tax rate for petrol, diesel, hybrid and electric cars | Increase |
|---|---|---|---|
| A | Up to 100 | £20 | £0 |
| B | 101-110 | £20 | £0 |
| C | 111-120 | £35 | £0 |
| D | 121-130 | £170 | £5 |
| E | 131-140 | £200 | £5 |
| F | 141-150 | £225 | £10 |
| G | 151-165 | £275 | £10 |
| H | 166-175 | £325 | £10 |
| I | 176-185 | £360 | £15 |
| J | 186-200 | £410 | £15 |
| K* | 201-225 | £445 | £15 |
| L | 226-255 | £760 | £25 |
| M | Over 255 | £790 | £30 |
VED RATES FOR CARS REGISTERED BEFORE 1 MARCH 2001
| Engine size | Standard rate* for petrol and diesel cars | Increase |
|---|---|---|
| Up to 1549cc | £230 | £10 |
| Over 1549cc | £375 | £15 |
Classic cars and the 40-Year tax exemption
Own a classic? If your car was built before 1 April 1986, it likely qualifies for the historic vehicle tax exemption under the 40-year rolling rule.
But don’t forget, the exemption isn’t automatic. You need to apply directly through the DVLA to avoid any unexpected charges. It’s worth double-checking before your next renewal, especially as the 2026 car tax reforms are expected to tighten up exemptions and rates.
In short, from high-emission surcharges to EV tax breaks, 2026’s car tax update is another big step in the UK’s push towards greener motoring.
For a quick way to confirm tax status on any vehicle, use Regit’s free car tax check.