Motorists across the United Kingdom are bracing for a significant financial impact as car tax rates are set to rise next week, with some drivers facing steeper increases than others. The upcoming changes to Vehicle Excise Duty (VED), commonly known as road tax, will affect millions of vehicle owners starting in April 2026.
Annual Inflation-Linked Increase Takes Effect
Vehicle Excise Duty is a mandatory requirement for all drivers in the UK, and it typically increases each April in line with inflation. This year follows that established pattern, with adjustments that will leave many motorists paying more to keep their vehicles on the road. The tax structure varies significantly depending on when a vehicle was registered and its carbon dioxide emissions.
First-Year Tax Rates for New Vehicles
For those purchasing new cars, the initial tax burden—often called the showroom tax—will see notable changes. Vehicles emitting between 1-50g/km of CO2 will face a first-year rate increase from £110 to £115. At the higher end of the emissions spectrum, cars producing over 255g/km of CO2 will see their first-year tax jump from £5,490 to £5,690. Notably, new electric vehicles with zero emissions will maintain their first-year rate at £10, unchanged from previous levels.
These first-year rates apply exclusively during the initial year of ownership. From the second year onward, owners transition to the standard car tax rate, which is increasing from £195 to £200 for vehicles registered after April 1, 2017.
Detailed First-Year Tax Breakdown
The complete schedule of first-year Vehicle Excise Duty rates effective from April 2026 includes:
- 0g/km – £10 (no change)
- 1-50g/km – £115
- 51-75g/km – £135
- 76-90g/km – £280
- 91-100g/km – £365
- 101-110g/km – £405
- 111-130g/km – £455
- 131-150g/km – £560
- 151-170g/km – £1,410
- 171-190g/km – £2,270
- 191-225g/km – £3,420
- 226-255g/km – £4,850
- 255+g/km – £5,690
Older Vehicle Tax Adjustments
For vehicles registered between March 1, 2001 and March 31, 2017, different tax rates apply. Electric, zero, or low-emission cars from this period will continue to pay £20 annually, with no increase scheduled. Similarly, vehicles emitting 101-110g/km or 111-120g/km of CO2 will maintain their rates at £20 and £35 per year, respectively.
However, cars producing higher levels of CO2 will experience increases. For instance, vehicles emitting 121-130g/km will see their annual tax rise from £165 to £170. Those with emissions exceeding 255g/km will face a jump from £760 to £790 per year.
Complete Older Vehicle Tax Schedule
The updated tax rates for cars registered between 2001 and 2017 include:
- Up to 100g/km – £20 (no change)
- 101-110g/km – £20 (no change)
- 111-120g/km – £35 (no change)
- 121-130g/km – £170
- 131-140g/km – £200
- 141-150g/km – £225
- 151-165g/km – £275
- 166-175g/km – £325
- 176-185g/km – £360
- 186-200g/km – £410
- 201-225g/km – £445
- 226-255g/km – £760
- 255+g/km – £790
The impending tax increases highlight the ongoing financial pressures facing UK drivers, particularly those with higher-emission vehicles. As the new rates take effect next week, motorists are advised to review their specific tax obligations based on their vehicle's registration date and emissions profile.
