Vehicle Tax Hikes Up to £5,690 Confirmed for April 2026

Millions of motorists across the United Kingdom are set to face significant increases in Vehicle Excise Duty from April 2026, with rates rising in line with inflation. Chancellor Rachel Reeves confirmed the hikes in the Autumn Budget, impacting owners of petrol, diesel, and electric vehicles nationwide.

Inflation-Linked Adjustments Across All Tax Bands

Vehicle Excise Duty is scheduled to rise across the board for cars, vans, and motorcycles starting from April 1. This annual adjustment is designed to maintain the real value of tax revenue by linking charges directly to the Retail Price Index.

First-year registration fees for the most polluting vehicles will see the most dramatic increases, with some climbing by hundreds of pounds. Drivers of cars emitting over 255g/km of CO2 could now face a staggering one-off payment of £5,690.

Cleaner Vehicles Also Affected by Changes

Even owners of cleaner vehicles will not be exempt from the changes, as almost every tax band is experiencing a price lift. For example, cars in the 1-50g/km bracket will see their initial rate rise from £110 to £115 this spring. The only cars not seeing an increase are those in the 0g/km category, where charges remain at £10.

Government Strategy for Environmental Transition

The Government continues to utilise the VED system to incentivise the transition toward more environmentally friendly transport options. By placing higher financial burdens on high-emission models, ministers hope to accelerate the adoption of low-carbon alternatives across the country.

Expert Advice for Vehicle Owners

Motoring experts are urging all vehicle owners to check their specific tax band now to avoid unexpected costs later. While most digital tax renewals will update automatically, the financial impact may leave many households feeling "cash strapped" amid the ongoing cost of living crisis.

Complete List of Updated Tax Bands

The full list of updated bands ensures that even electric vehicle owners will now pay a nominal fee. The expected first-year car tax rates from April 1, 2026, are detailed below: