Buying a new car in 2026 means looking beyond the monthly finance payment. Vehicle Excise Duty, usually called VED or car tax, can add anything from £10 to several thousand pounds in the first year, and the bill may rise again from year two. The rules now apply to electric cars as well, so buyers who still expect an EV to be tax-free can be caught out.
The rates below apply to cars first registered from 1 April 2026 to 31 March 2027. Registration date matters: a car ordered earlier but registered after 1 April 2026 falls under the new rates. Before signing an order, ask the dealer for the exact first-year tax, standard annual rate and any expensive car supplement.
How new car tax works in 2026
For most new cars, VED has two stages. The first payment is based mainly on the car’s official carbon dioxide emissions and covers the first 12 months. From the second tax payment onwards, most petrol, diesel, hybrid and electric cars move to the standard annual rate of £200.
A separate expensive car supplement may apply in years two to six. It is based on the vehicle’s published list price before discounts, not necessarily the amount negotiated with the dealer. A large discount therefore does not automatically reduce the car’s tax classification.
First year car tax rates for 2026
The first year car tax rises sharply with emissions. A zero-emission car pays £10. Cars emitting 1 to 50g/km pay £115, while 51 to 75g/km costs £135. The rate is £280 for 76 to 90g/km, £365 for 91 to 100g/km, £405 for 101 to 110g/km and £455 for 111 to 130g/km.
Higher-emission cars face much larger bills. The rate is £560 for 131 to 150g/km, £1,410 for 151 to 170g/km, £2,270 for 171 to 190g/km, £3,420 for 191 to 225g/km, £4,850 for 226 to 255g/km and £5,690 above 255g/km.
These VED rates 2026 make the official CO2 figure a meaningful part of the purchase price. Versions of the same model can sit in different bands because of engine, gearbox, wheel size or trim. Ask for the figure of the exact vehicle rather than relying on a general model advertisement.
The diesel first-year supplement
A new diesel that does not meet the required Real Driving Emissions 2 standard is generally moved up by one VED band for its first-year payment. Many modern diesels comply, but buyers should still confirm this with the dealer.
Electric car tax in the UK
Electric cars are no longer exempt from VED. A new zero-emission car registered on or after 1 April 2025 pays £10 in its first year, followed by the £200 standard annual rate. Electric cars registered between 1 April 2017 and 31 March 2025 also pay the standard rate in 2026.
This changes the calculation for first-time EV buyers. Annual tax now belongs alongside insurance, servicing, tyres and charging costs. Our guide to electric car running costs can help with a fuller comparison.
The expensive car supplement can change the deal
From the second time a new car is taxed, an additional £440 a year is charged for five years when the relevant list-price threshold is exceeded. For petrol, diesel and hybrid cars, the threshold is more than £40,000. For qualifying zero-emission cars registered from 1 April 2025, it is more than £50,000 from 1 April 2026.
That produces a combined annual VED bill of £640 during the supplement period: £200 standard rate plus £440. Across five years, the supplement alone totals £2,200.
Consider an electric car with a published list price of £49,995. Under the 2026 threshold, it should avoid the electric expensive car supplement. A qualifying zero-emission car above £50,000 can face the extra £440. Because factory options may affect the relevant price, ask the dealer to confirm the tax treatment in writing before ordering.
Buyers near either threshold should also review a new car running costs guide and car finance budgeting guide.
What changes after the first year?
From year two, the emissions-based first-year charge disappears and most cars registered from April 2017 move to the £200 standard rate. Hybrids and other alternatively fuelled cars no longer receive the old £10 annual discount.
Payment method can affect the total. A single annual payment is £200, while 12 monthly Direct Debit instalments total £210. Any expensive car supplement is added where applicable.
EV owners should also look ahead to 2028
The government has set out a mileage-based Electric Vehicle Excise Duty from 1 April 2028. Under the published plan, battery-electric and hydrogen fuel-cell cars will be charged 3 pence per mile, while plug-in hybrids will be charged 1.5 pence per mile. This will sit alongside normal VED rather than replace it.
Drivers are expected to provide an odometer reading and estimate future mileage, followed by a reconciliation. At 10,000 miles a year, 3 pence per mile would equal £300 before normal annual VED. Detailed implementation may still be refined through legislation, but buyers planning to keep an EV beyond 2028 should include this announced cost in long-term budgeting.
How to budget before ordering
Start with the exact registration date, official CO2 figure and published list price. Calculate first-year tax separately from years two to six. Do not assume VED is included in every advertised drive-away price, and do not assume a discounted selling price removes the expensive car supplement.
A useful comparison should show first-year VED, five years of standard-rate tax, any supplement and, for an EV kept beyond April 2028, an estimated mileage charge.
Frequently asked questions
How much is the standard new car tax in 2026?
For most cars registered from 1 April 2017, the standard rate from the second tax payment is £200 a year. The first-year amount depends on CO2 emissions, and an expensive car supplement may also apply.
Do electric cars pay road tax in 2026?
Yes. New zero-emission cars pay £10 in the first year and normally £200 a year afterwards. Some electric cars with a list price above £50,000 also pay the £440 annual supplement in years two to six.
Is the expensive car supplement based on the discounted price?
No. It is based on the published list price before discounts. Confirm the relevant figure with the dealer, particularly when adding factory options or buying close to the threshold.
Will electric cars pay per mile?
The government has announced mileage-based eVED from 1 April 2028, with published starting rates of 3 pence per mile for fully electric cars and 1.5 pence per mile for plug-in hybrids, alongside existing VED.
Final thoughts
New car tax in the UK is no longer a simple petrol-versus-electric comparison. In 2026, the biggest surprises are steep first-year rates for higher-emission cars, the £200 standard rate for EVs and a supplement that can add £2,200 over five years. Check the exact car, not just the model name, and ask the dealer for a written tax breakdown before committing.
