Car Tax Changes April 2026:
Everything That Went Up
From 1 April 2026, car tax rates increased across all categories. The standard rate rose by £5 to £200. First year rates increased across all 13 CO2 bands. The expensive car supplement rose to £440.
Summary: Most drivers pay £5-10 more per year. Premium car owners pay £15-40 more. High-emission vehicles face the largest increases in first year rates.
Key Changes Summary
Standard Rate
+£5/year for most car owners
Expensive Car Supplement
+£15/year for owners of cars over £40,000
Premium Car Total (ICE, £40k+)
+£20/year for premium car owners in years 2-6
EV Supplement Threshold
Many EVs previously over threshold now avoid £440 supplement
EV Standard Rate
+£5/year for electric vehicle owners
Historic Vehicle Cut-off
All 1985 models (e.g. Golf Mk2, Ford Sierra) now exempt
Company Car BIK (EVs)
+1% on BIK rate = slightly higher monthly deduction
6-monthly Payment
+£5.50 per 6-monthly payment at standard rate
First Year Rate Changes: Before vs After April 2026
| Band | CO2 | Petrol | Diesel | ||
|---|---|---|---|---|---|
| 2025/26 | 2026/27 | 2025/26 | 2026/27 | ||
| Band A | 0 g/km | £10 | £10 | £10 | £10 |
| Band B | 1-50 g/km | £20 | £30 | £20 | £30 |
| Band C | 51-75 g/km | £100 | £135 | £100 | £135 |
| Band D | 76-90 g/km | £130 | £175 | £130 | £175 |
| Band E | 91-100 g/km | £165 | £195 | £185 | £215 |
| Band F | 101-110 g/km | £185 | £220 | £210 | £245 |
| Band G | 111-130 g/km | £230 | £270 | £265 | £300 |
| Band H | 131-150 g/km | £585 | £680 | £650 | £745 |
| Band I | 151-170 g/km | £945 | £1,095 | £1,040 | £1,200 |
| Band J | 171-190 g/km | £1,420 | £1,630 | £1,565 | £1,790 |
| Band K | 191-225 g/km | £2,015 | £2,340 | £2,220 | £2,575 |
| Band L | 226-255 g/km | £2,840 | £3,300 | £3,130 | £3,630 |
| Band M | Over 255 g/km | £4,680 | £5,490 | £4,880 | £5,690 |
2025/26 figures are approximate based on the previous tax year rates. The 2026/27 rates are the confirmed rates effective from 1 April 2026.
What This Means for You
Average family car owner (petrol, under £40k)
Standard rate rises from £195 to £200. You pay £5 more per year. Not significant.
New car buyer (first year tax)
First year rates have increased across all bands. A Band H petrol (131-150 g/km) now costs £680 in year 1, up from £585. Buyers of high-emission cars see larger increases.
EV owner (under £50,000 list price)
Standard rate rises from £195 to £200. You pay £5 more per year. The raised supplement threshold (£40k to £50k) may actually save you money if your EV was previously over the threshold.
Premium car owner (over £40k ICE)
Total rate rises from £620 to £640 per year (standard £200 + supplement £440). An increase of £20 per year.
EV owner previously over £40k threshold
If your EV costs £40,001-£50,000, you previously paid the £425 supplement but no longer do from April 2026. You now pay just £200/year - a saving of up to £440.
Classic car owner (1985 model)
If your car was manufactured before 1 January 1986, it now qualifies for the historic vehicle exemption. Apply at the Post Office for £0 VED.