Car Tax UK 2026: VED Rates, Bands, EV Rules & How to Pay

Car tax changes came into force on 1 April 2026. The standard rate rises to £200, EVs gain a more generous expensive car threshold, and first-year rates increase across all CO2 bands. Here is everything you need to know about what you will pay in 2026/27. Rates Updated 1 April 2026

Car Tax 2026 — At a Glance

First-Year VED Rates — New Cars 2026/27 (Registered from 1 April 2026)

Source: DVLA/GOV.UK VED rates April 2026. First-year rates apply only in the first year a car is registered — after that most cars drop to the £200 standard rate. Higher-emission diesel cars that do not meet RDE2 standards pay an additional surcharge in the first year. The first-year rate is typically collected by the dealership when you buy a new car.

The Expensive Car Supplement — Who Pays It?

The list price used for the Expensive Car Supplement is the manufacturer's published price when the car was first registered — not what you paid for it. Optional extras are included. This means even a discounted new car could trigger the supplement if its list price exceeds the threshold. When buying a new car, check the list price (not your negotiated price) against the threshold.

How to Check Your Car Tax Status

Pay-Per-Mile Road Tax — Coming 2028

The government confirmed in the Autumn Budget 2025 that a pay-per-mile scheme (eVED) will launch for electric and plug-in hybrid vehicles from April 2028. Electric car drivers will pay 3p per mile alongside the existing VED. Plug-in hybrid drivers will pay 1.5p per mile. At average UK driving of 8,000 miles/year, an EV driver would pay an additional £240/year. No tracking devices will be required — DVLA plans to verify mileage at MOT centres. Full implementation details have not yet been published.

VED Exemptions — Who Pays Nothing?

Historic vehicles: Cars manufactured before 1 January 1985 (from April 2026) are exempt. This rolls forward annually — a car becoming 40 years old in any given year qualifies. Must be registered as historic with DVLA at a Post Office. Disabled persons: Receiving PIP Standard or Enhanced Mobility, DLA Higher Rate Mobility, or War Pensioner's Mobility Supplement qualifies for free VED on one vehicle. Mobility vehicles and powered wheelchairs: Specifically defined models with max speed 8mph are exempt. SORN vehicles: A car declared off-road via Statutory Off Road Notification pays no VED and cannot be driven on public roads.

Data verified April 2026. Rates and prices change frequently — always verify directly with providers and DVLA before acting. This article is for informational purposes only.