Rachel Reeves, the Labour Party Chancellor, has confirmed car tax charges ranging from £10 to £365 for five groups of drivers. The Vehicle Excise Duty (VED) rates apply to cars with low emissions, specifically those between 91 and 100g/km.
New Car Tax Rates for Low-Emission Vehicles
Owners of cars falling into the 91-100g/km emissions category will pay £365 to use the roads in the first year. This represents a £15 increase compared to the 2025/26 tax year. The £365 rate is the fifth lowest tier, with other bands set at:
- 0g/km emissions: £10
- 1 to 50g/km: £115
- 51 to 75g/km: £135
- 76 to 90g/km: £280
To determine your car tax band, visit the GOV.UK website or use the Go Compare car tax checker tool.
How Car Tax Rates Are Calculated
Car tax rates depend on the standard rate, CO2 emissions, or engine size, based on when the vehicle was first registered. For cars registered before 1 March 2001, the rate depends on engine size. For cars registered between 1 March 2001 and 31 March 2017, the rate depends on CO2 emissions, arranged in tax bands.
Cars registered after 1 April 2017 pay the standard rate of £200 per year. Additionally, internal combustion engine (ICE) cars with a list price over £40,000 are subject to a £425 supplement, known as the expensive car supplement or luxury car tax. For electric vehicles (EVs), the cap is £50,000 as of April 2026, payable on top of the standard rate from the second to the sixth year.
Tax Bands for Older Cars
If your car was first registered between 1 March 2001 and 1 April 2017, it is placed in a tax band based on its carbon dioxide emissions. Each band has a specific price for yearly car tax. Cars emitting more than 255g/km fall into the most expensive bracket.
Electric Vehicle Tax Changes
Electric cars now have to pay road tax as of April 2025. The cost depends on when the EV was registered. For cars with a list price under £40,000 (ICE) or £50,000 (EVs), the standard annual car tax after the first year is £200.
