Car Tax Changes Coming in April 2026

UK car tax changes 2026 are the biggest adjustment to Vehicle Excise Duty since WLTP first arrived. If you're budgeting for a new purchase, wondering how much electric car tax will be in 2026, or tracking the latest VED car tax changes and exemptions, this guide keeps everything simple.

Snapshot of the 2026 VED overhaul

April 2026 car tax increases aim to align revenue with the rapid shift toward electric mobility. Treasury papers confirm that the refreshed car tax bands 2026 will reward low-emission models while ensuring EV owners contribute once their cars hit the road.

  • From April 2026, all brand-new vehicles will follow the updated VED bands that align road tax with WLTP CO2 figures.
  • Electric vehicles (EVs) registered after 1 April 2026 will begin paying the standard rate after their first year, ending the historic exemption.
  • Cars first registered between 2017 and 2025 keep their original banding but will see a £10–£25 increase depending on CO2 output.
  • Expensive car supplements now apply to zero-emission models, so EVs over £40,000 will owe the £390 prestige levy for years 2–6.
  • Businesses using pool cars or vans must budget for the Commercial Vehicle Excise Duty rise that mirrors CPI inflation.

Updated car tax rates from April 2026

The standard rate is projected to reach £190, mirroring CPI inflation. First-year rates climb between £10 and £120 depending on CO2 output, while diesel cars that fail RDE2 continue to pay the diesel supplement. Plug-in hybrids retain a discount, but it narrows to roughly £30 versus petrol equivalents.

The most common question we hear is “how much will my car tax be in 2026?” Use the table below as a quick guide, then confirm the exact figure with our free car tax checker.

  • 0 g/km (EV) – £0 in year one, ~£190 standard rate from year two.
  • 1–50 g/km – £10 increase on first-year rate, then £190 standard rate.
  • 51–100 g/km – £20 increase on first-year rate, £190 thereafter.
  • 101–150 g/km – £30 increase on first-year rate, £190 thereafter.
  • Over 151 g/km – £60–£120 increase for first year, £190 thereafter.

Electric car tax in 2026

The government confirmed there is no returning to zero tax for new EVs. From April 2026, electric car tax mirrors the rest of the market. Buyers should plan for the prestige levy if list prices exceed £40,000 and factor in the standard £190 rate once year one ends. Salary-sacrifice drivers will also notice slightly higher Benefit-in-Kind (BIK) percentages, rising from 3% in 2025/26 to 4% in 2026/27.

Timeline for the 2026 car tax increase

Staying ahead of car tax costs 2026 means tackling paperwork early. Use this timeline to plan MOTs, renewals, and fleet budgets.

  • January–March 2026: Confirm your vehicle’s CO2 rating and list price so you understand which band you will fall into once the reforms go live.
  • April 2026: New registration period starts with updated first-year VED prices, and EVs join the standard rate after year one.
  • July 2026: First prestige levy payments become due for qualifying EVs and hybrids purchased in April.
  • October 2026: HM Treasury reviews revenue and may adjust the CPI-linked increases for 2027, so stay alert for consultation papers.

Will any vehicles stay exempt?

Some ved car tax changes exemptions 2026 still apply. Vehicles registered with historic, disabled, or agricultural class taxation continue to enjoy 100% relief. However, mainstream electric cars, plug-in hybrids, and petrol/diesel cars will all feel the April 2026 car tax increase in some form.

If you own a specialist vehicle or run a charity fleet, contact DVLA early to confirm whether your class of vehicle keeps its concession once the new rules land.

How to prepare for the April 2026 car tax rise

  1. Check your existing VED renewal date and consider taxing for 12 months before April if it saves money.
  2. Use our MOT and tax checker to confirm the latest expiry dates and advisories.
  3. If purchasing a high-value EV, negotiate the prestige levy cost into your deal or opt for a sub-£40,000 specification.
  4. Companies should refresh benefit policies so staff understand the updated BIK and fuel benefit figures.

Final word on 2026 car tax rates

Whether you're researching 2026 car tax bands, asking how much electric car tax will be in 2026, or just trying to stay compliant, the best defence is information. Bookmark this page, run a fresh MOT and tax check, review your budget ahead of the April switchover, learn how the luxury car tax supplement affects vehicles over £40,000, and dive into our electric car road tax guide if you're switching to an EV or hybrid.

Frequently Asked Questions

April 2026 introduces the next phase of UK car tax reform. Brand-new vehicles will be taxed using updated VED bands aligned to WLTP CO2 ratings, and electric cars will enter the standard rate after their first year on the road.

Pure EVs registered from April 2026 will pay the discounted first-year rate (currently £0) and then move onto the standard rate, forecast at roughly £190. If the vehicle list price exceeds £40,000, the £390 prestige supplement will also apply for years two through six.

Ultra-low emission hybrids will pay slightly less than petrol and diesel cars, but they still move into the refreshed CO2 bands. Expect a £10–£20 rise over 2025 levels plus any prestige levy if the sticker price is above £40,000.

Historic vehicles over 40 years old, disability-exempt vehicles, and mobility scooters remain exempt. However, mainstream EVs lose their exemption and must budget for the standard rate going forward.

Car Tax Changes April 2026 | Updated UK VED Bands Ex... | VehicleScore