Car tax is no longer a minor line on the paperwork when buying a new vehicle. From 1 April 2026, Vehicle Excise Duty rates rose again, electric cars remain taxable, and the expensive car supplement works differently for zero-emission models than it does for petrol, diesel and hybrid cars. That combination can catch buyers out, particularly anyone who still assumes an electric car comes with free road tax.
The amount depends on the car’s CO2 emissions, fuel type, list price and registration date. Separate the first-year charge from the annual rate that follows because they are calculated differently.
How New Car Tax Works in the UK in 2026
For a car first registered on or after 1 April 2017, the first vehicle tax payment covers 12 months and is based mainly on official CO2 emissions. From the second tax payment onwards, most cars move to a standard annual rate.
From 1 April 2026 to 31 March 2027, the standard 12-month rate is £200. It applies to petrol, diesel, electric and alternative-fuel cars registered under the post-April 2017 system. Monthly Direct Debit payments cost more overall than one annual payment.
First-Year Car Tax Rates for 2026
First year car tax makes higher-emission new cars more expensive at registration. A zero-emission car is charged £10 for its first year. Cars emitting 1 to 50g/km pay £115, while the 51 to 75g/km band costs £135.
The rates then rise quickly: £280 for 76 to 90g/km, £365 for 91 to 100g/km, £405 for 101 to 110g/km, £455 for 111 to 130g/km, and £560 for 131 to 150g/km.
Higher-emission cars face much larger bills. The charge 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 anything above 255g/km.
Some diesel cars that do not meet the Real Driving Emissions 2 standard are moved into a higher first-year band. Ask the dealer to confirm the car’s RDE2 status rather than assuming all modern diesels are treated alike.
Electric Car Tax in the UK Is No Longer Zero
The biggest misunderstanding around new car tax UK 2026 is the belief that battery-electric cars are still exempt. That exemption ended on 1 April 2025. A new zero-emission car registered in the 2026 to 2027 tax year pays £10 for the first year and then the £200 standard rate from the second tax payment.
Electric cars registered between 1 April 2017 and 31 March 2025 also pay £200 in 2026. Hybrids no longer receive the previous £10 annual discount, so those registered on or after 1 April 2017 also move to £200 after their first year.
The Expensive Car Supplement Can Add £440 a Year
The expensive car supplement applies from the second time an eligible car is taxed and continues for five years. In 2026, it adds £440 to the standard £200 rate, creating a £640 annual bill during those years.
For petrol, diesel and hybrid cars, the supplement normally applies when the original list price was more than £40,000. For zero-emission cars registered on or after 1 April 2025, the threshold increased to more than £50,000 from 1 April 2026.
The test uses the published list price before discounts, not the amount negotiated with the dealer. A showroom discount does not move a car below the threshold. Ask the dealer to confirm the official list price, particularly when factory options take the specification close to £40,000 or £50,000.
A Practical Example: Comparing Two £45,000 Cars
Consider a buyer choosing between a £45,000 electric car and a £45,000 petrol car emitting 131 to 150g/km, both registered after 1 April 2026. The electric car costs £10 in first-year VED, then £200 a year under current rates. Because its list price does not exceed the £50,000 zero-emission threshold, it avoids the expensive car supplement.
The petrol car costs £560 in first-year tax. From its second tax payment, it costs £640 a year for five years because the £45,000 list price exceeds the £40,000 threshold for non-zero-emission cars. After the supplement period, it returns to the standard rate applicable at that time.
This is why buyers should compare tax over several years, not just the figure beside the first payment. A dealer quote may include first-year tax in the on-the-road price while leaving future VED for the owner to budget separately.
What Buyers Should Check Before Ordering
Ask for the car’s official CO2 figure, first-year VED, list price before discounts, fuel classification and expected annual tax from year two. Confirm whether the model is above the relevant expensive car threshold.
Compare total ownership costs rather than VED alone. Insurance, charging or fuel, servicing, depreciation and finance interest can outweigh the tax difference. Related guides on electric versus petrol running costs, new car depreciation, and budgeting for car ownership can add useful context.
What Changes After 2026?
VED rates can rise in future Budgets, so the £200 standard rate and £440 supplement should not be treated as permanent lifetime figures. Check the current government rate table before buying or renewing tax.
The government has also published plans for an Electric Vehicle Excise Duty mileage charge from 1 April 2028. The proposed rates are 3 pence per mile for battery-electric and hydrogen cars and 1.5 pence per mile for plug-in hybrids, alongside the existing VED system. Buyers planning to keep an electrified car beyond 2028 should include that possible mileage-based cost in longer-term calculations.
Frequently Asked Questions
How much is road tax on a new electric car in 2026?
A new zero-emission car registered between 1 April 2026 and 31 March 2027 pays £10 for the first year. From the second tax payment, the standard annual rate is £200, with an additional £440 where the expensive car supplement applies.
Does the £50,000 expensive car threshold apply to every car?
No. The more-than-£50,000 threshold applies to qualifying zero-emission cars registered on or after 1 April 2025. Petrol, diesel and hybrid cars generally remain subject to the supplement when their list price exceeds £40,000.
Is first-year tax included in the price of a new car?
Dealers usually include first-year VED in the on-the-road price, but buyers should confirm this in the written quotation. Future annual payments are normally the registered keeper’s responsibility.
Can a dealer discount reduce the expensive car supplement?
No. Eligibility is based on the published list price before discounts, not the final amount paid. Check the official figure before placing the order.
Budget Beyond the Showroom Price
The VED rates 2026 make the emissions figure and original list price as important as the headline purchase price. Electric cars still receive the lowest first-year charge, but they are no longer tax-free, and higher-priced vehicles can attract a substantial supplement. By checking the first-year rate, the year-two cost and the relevant price threshold before ordering, buyers can avoid an unexpected bill and compare new cars on a fairer long-term basis.
