UK Car Tax Rates 2026: Complete VED Guide by Fuel Type

Car tax in 2026 has changed more than in any recent year, and electric vehicle owners are paying it for the first time in most cases. If your last tax reminder looked different to what you remembered, or you're buying a new car and trying to work out the real annual cost, this guide walks through exactly how Vehicle Excise Duty (VED) works for every fuel type.

This sits in our Motoring category, alongside our other DVLA-based calculators.

What is VED and how does it work?

Vehicle Excise Duty, usually called car tax or road tax, is administered by the DVLA and is a legal requirement for any vehicle kept or used on a public road. It's charged annually, though most owners pay it in monthly or six-monthly instalments by Direct Debit. How much you pay depends mainly on your vehicle's CO2 emissions and how long ago it was first registered, since the rules have changed several times since 2001.

VED is separate from your MOT and insurance, but the DVLA cross-checks all three: a car with no valid MOT or insurance policy is automatically flagged as untaxed too, even if you've paid, so keeping all three current at the same time matters if you want to avoid an unwanted letter.

First-year VED rates for new cars (2026)

Cars registered on or after 1 April 2017 pay a CO2-banded first-year rate, sometimes called the showroom tax, followed by a flat standard rate from year two onwards. The first-year rate rises steeply with emissions.

A new petrol car emitting 130g/km, a common figure for a mid-size family car, falls into the 111 to 130 band and pays a £540 first-year rate. Note that from year two, this same car drops straight to the flat standard rate below, regardless of its emissions. Enter your own car's emissions into the road tax calculator for an exact figure rather than reading off the band.

Standard annual VED (2026)

From the second year of registration, almost all post-2017 cars pay the same flat rate, currently £195 a year, whether petrol, diesel, hybrid or electric. Emissions no longer affect the annual rate at this point.

There's one important exception: the expensive car supplement. Cars with a list price over £40,000 when new pay an extra £425 a year, on top of the standard rate, for five years starting from the second time the car is taxed. That's £620 a year in total for years two through six, dropping back to the £195 standard rate from year seven onwards. Use the road tax calculator to check whether your specific car is affected.

VED for cars registered before April 2017

Cars first registered between 1 March 2001 and 31 March 2017 use an older emissions-based system, with a single annual rate that doesn't change as the car ages.

Cars registered before March 2001 are taxed by engine size rather than emissions, a legacy system from before CO2 figures were routinely recorded.

Electric vehicles and the 2025 rule change

Electric vehicles were completely exempt from VED until March 2025. From 1 April 2025, that exemption ended: new EVs now pay the lowest first-year rate (£10) and the standard £195 rate from year two, on exactly the same basis as petrol and diesel cars.

This matters more than it might first appear, because the expensive car supplement applies too. Many higher-end EVs, including several Tesla and Polestar models, have a list price above £40,000, so their owners now face the same £425 annual supplement as an equivalent petrol car in that price bracket. The days of running a premium EV completely tax-free are over. It's still worth comparing running costs properly though: our fuel cost calculator can help you weigh VED alongside what you'd actually spend on fuel or charging for your typical mileage.

Motorcycles, vans and larger vehicles

Motorcycles are taxed by engine size rather than emissions, in bands based on cubic capacity (cc), and generally cost significantly less than car VED. Light goods vehicles (vans) mostly pay their own flat annual rate, distinct from the car system above. Heavier commercial vehicles, such as HGVs, fall under a separate and more complex system based on weight and axle configuration. If you're taxing anything other than a standard car, the DVLA's own vehicle tax checker will confirm the exact rate for your specific vehicle.

How to check and pay your VED

The DVLA sends a V11 reminder letter shortly before your current tax runs out, but it's worth checking your status directly rather than relying on post arriving on time, particularly if you've recently moved house.

You can check your vehicle's tax status for free on GOV.UK using just the registration number, no account needed. To pay, you'll need your V11 reminder letter, your V5C logbook reference, or the green new keeper slip if you've just bought the car. Payment can be made annually, in six-monthly instalments, or monthly by Direct Debit.

Driving or keeping an untaxed vehicle on a public road (without a SORN) carries a fixed penalty starting at around £80, and can escalate to court prosecution with fines of up to £1,000 or more if it isn't resolved. Once VED is sorted, our fuel cost calculator is the next place to check for a full picture of your annual motoring budget.

Frequently asked questions