Buying a new car in 2026 means looking beyond the showroom price. Vehicle Excise Duty, usually called VED or car tax, can add anything from a modest first-year charge to several thousand pounds, depending on the car’s official CO2 emissions. The biggest surprise is often reserved for electric-car buyers: zero-emission models are no longer exempt, and some higher-priced EVs now attract the expensive car supplement as well.
The latest VED rates 2026 apply from 1 April 2026 to 31 March 2027. Before signing an order form, it is worth checking the car’s emissions band, list price and registration date, because each can change what you pay.
How new car tax works in the UK in 2026
For cars first registered on or after 1 April 2017, the system has two main stages. In the first year, the tax is based on the vehicle’s official CO2 emissions. From the second year onwards, most cars move to a standard annual rate.
From 1 April 2026, that standard rate is £200. It applies to petrol, diesel, hybrid and electric cars within the post-April 2017 system. Cars with a sufficiently high original list price may also face an additional charge for five years, beginning with the second year of tax.
This means the first year car tax shown in a dealer’s “on-the-road” price may be very different from the bill that arrives the following year. A high-emission car can be expensive at registration but fall to the standard rate later. A costly low-emission or electric car may have a small first-year bill but become substantially more expensive from year two because of the supplement.
First-year VED rates for new cars
The 2026 first-year bands are based on official CO2 emissions measured in grams per kilometre. A zero-emission car costs £10 in its first year. Cars emitting 1 to 50g/km cost £115, while those in the 51 to 75g/km band cost £135.
The charge then rises as emissions increase. Cars rated at 76 to 90g/km pay £280; 91 to 100g/km pay £365; 101 to 110g/km pay £405; 111 to 130g/km pay £455; and 131 to 150g/km pay £560.
The increases become much sharper above 150g/km. The first-year rate is £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 for cars emitting more than 255g/km.
These figures make the emissions line on a vehicle’s specification especially important. Two similar-looking models can sit in different tax bands because of their engine, gearbox, wheels or trim. Check the exact version you are ordering rather than relying on the rate advertised for the wider model range.
Diesel cars may face a higher first-year charge
A new diesel car that does not meet the Real Driving Emissions 2 standard can be moved up by one VED band for its first-year payment. Most modern new diesels are designed to meet current requirements, but buyers should still confirm the status of the exact vehicle with the manufacturer or dealer.
Electric car tax UK buyers now need to budget for
The assumption that electric cars pay no road tax is now out of date. The exemption ended on 1 April 2025, and the rates in force from April 2026 require a newly registered zero-emission car to pay £10 in the first year and the £200 standard rate thereafter.
Existing electric cars are also affected. An electric car first registered between 1 April 2017 and 31 March 2025 generally pays the £200 standard rate in 2026-27. Older electric cars registered between 1 March 2001 and 31 March 2017 pay £20 under the applicable older system.
Hybrids have also lost the previous £10 alternative-fuel discount. For a hybrid registered on or after 1 April 2017, the standard annual rate is now £200 after its emissions-based first year.
The expensive car supplement can change the calculation
The expensive car supplement is an additional £440 a year, paid on top of the standard rate for five years from the second year of tax. At 2026 rates, an affected car therefore costs £640 in year two: the £200 standard rate plus the £440 supplement.
For petrol, diesel and other non-zero-emission cars, the supplement generally applies when the original list price is more than £40,000. From 1 April 2026, the threshold for zero-emission cars is higher: it applies when the list price is more than £50,000. The revised EV threshold applies to zero-emission vehicles registered from 1 April 2025 onwards.
The key phrase is “list price”. A dealer discount that takes the transaction price below the threshold does not necessarily remove the supplement. Factory-fitted options can also push a car over it. Ask for the official list price, including relevant options, before choosing a trim level.
How to budget before ordering a new car
Start by checking the exact model’s official CO2 figure and first-year VED band. Then confirm whether the quoted purchase price includes the first-year tax, as most on-the-road offers do. Finally, check the official list price against the expensive-car threshold and calculate the likely second-year bill.
Do not judge ownership cost from the first payment alone. A zero-emission model may look exceptionally cheap in year one but cost £640 in year two if it falls within the supplement rules. Conversely, a high-emission car may carry a painful registration-year charge even when its later annual rate is lower.
VED rates can be uprated in future tax years, so treat 2026 figures as the current budget baseline rather than a fixed cost for the entire time you own the car.
Frequently asked questions
How much is standard car tax in the UK in 2026?
For most cars first registered on or after 1 April 2017, the standard annual VED rate is £200 from 1 April 2026. The first-year rate is separate and depends on CO2 emissions.
Do new electric cars pay road tax in 2026?
Yes. A new zero-emission car registered in the 2026-27 tax year pays £10 in its first year and then moves to the £200 standard rate.
What is the electric-car expensive supplement threshold?
From 1 April 2026, a zero-emission car with an original list price of more than £50,000 can attract the £440 annual supplement. It runs for five years, starting from the second year of tax.
Is first-year car tax included in the dealer price?
It is commonly included in an advertised on-the-road price, but buyers should confirm this in writing. The quote should also make clear whether registration fees or optional extras are included.
Conclusion
New car tax UK 2026 rules reward lower emissions in the first year, but they no longer make electric cars tax-free. The safest approach is to check three details before buying: the exact CO2 figure, the original list price and the expected year-two charge. That simple calculation can prevent an attractive showroom deal from becoming an unexpected ownership cost.
