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Tax & VED
2026/27 Car Tax Bands Explained
A full reference for every UK car tax band in force for the 2026/27 tax year. Standard rates, first-year showroom rates, the Expensive Car Supplement, and the older band systems for pre-2017 and pre-2001 cars.
10 min read·Updated May 2026
In one line
The standard VED rate is £200 per year in 2026/27, the Expensive Car Supplement adds £440 per year in years 2 to 6 for cars above £40,000 (£50,000 for new EVs), and electric cars have not been exempt from car tax since 1 April 2025.
Three band systems, side by side
UK car tax (Vehicle Excise Duty, or VED) is set by HM Treasury and collected by DVLA. The band that applies to your car depends on its first-registration date. Three different systems are in force at once, which is why two cars of similar size can pay very different amounts:
First registered on or after 1 April 2017 (the most common bracket today): a CO2- based first-year rate, then a flat standard rate. May also pay the Expensive Car Supplement.
First registered 1 March 2001 to 31 March 2017: a graduated CO2-letter table (bands A to M).
First registered before 1 March 2001: a simple cc-based table (two bands).
Vehicles more than 40 years old can additionally be declared exempt as historic vehicles. The rest of this guide breaks each system down with the exact rates applicable for the 2026/27 tax year.
Post-April-2017 standard rate
Almost every car first registered after April 2017 pays a single flat rate from year two onwards, regardless of fuel type:
Petrol, diesel, hybrid: £200 per year
Electric: £200 per year (no longer exempt since April 2025)
Alternative fuel discount: scrapped April 2025
The 2025/26 rate was £195. The 2026/27 uplift to £200 is in line with the standard inflation-linked uplift applied each April.
Expensive Car Supplement
A £440 per year supplement applies in years two to six of a car's life, on top of the standard rate. It is triggered by the list price when new, not the price you actually paid:
Petrol, diesel, hybrid: applies above £40,000 list price
Electric (registered from 1 Apr 2026): applies above £50,000 list price
Years applied: 2 through 6 only; years 7+ return to the standard rate
A car ordered just above the threshold can pay more VED across years 2 to 6 than the "saving" from buying a higher-spec model in the first place. Always check the official list price before you negotiate.
First-year (showroom) rates
In year one, cars first registered after April 2017 pay a CO2-based rate across twelve bands. The rate is typically included in the dealer's on-the-road price:
0 g/km (EVs from 1 Apr 2025): £10 first year
1 to 50 g/km: low first-year rate (under £50)
51 to 75 g/km: moderate first-year rate
76 to 150 g/km: middle bands
151 to 255 g/km: rising sharply
Over 255 g/km: top band, can exceed £5,000
Always verify against the latest DVLA V149 rates table before committing to a high-emitting new car.
Pre-April-2017 cars: the CO2-letter system
Cars first registered between 1 March 2001 and 31 March 2017 sit in a graduated band system from A to M, fixed for the life of the vehicle and uplifted modestly each year:
Band A (up to 100 g/km): very low rate, often zero
Bands B, C, D (101 to 140 g/km): low rates
Bands E, F, G, H (141 to 200 g/km): mid-tier
Bands I, J, K, L, M (201+ g/km): higher rates, climbing into several hundred pounds
Exact pence figures change each April. Use our car tax calculator to see the current rate for any registration.
Pre-March-2001 cars: the engine-size system
Before CO2 ratings drove the system, VED was calculated against engine displacement only. Two bands apply:
Engines up to 1,549 cc: lower flat rate
Engines over 1,549 cc: higher flat rate
Both rates are uplifted modestly in April each year. Cars in this bracket are also the most likely to qualify for historic-vehicle exemption.
Historic vehicle exemption (40-year rolling rule)
Vehicles more than 40 years old can be declared VED exempt by the keeper, provided they have not been substantially changed. The rule is rolling, so a 1986-registered car becomes eligible in 2026.
The keeper signs the V112 declaration form when taxing the vehicle online or at a Post Office. The same exemption typically applies to the MOT, but the owner remains legally responsible for roadworthiness.
Electric cars: the post-April-2025 picture
The most consequential recent change is the end of the EV exemption on 1 April 2025. Three things matter:
EVs first registered between 1 April 2017 and 31 March 2025 now pay the standard rate of £200 in 2026/27.
EVs first registered from 1 April 2025 pay a £10 first-year rate, then the standard rate from year two.
EVs first registered from 1 April 2026 are subject to the Expensive Car Supplement at the higher £50,000 threshold (vs £40,000 for petrol and diesel).
The £10 alternative-fuel discount that hybrids and bi- fuel vehicles used to enjoy was also scrapped in April 2025. A post-2017 hybrid now pays the same £200 standard rate as a petrol or diesel equivalent.
How you can pay your car tax
DVLA accepts three payment schedules:
Annually by single payment, the cheapest option.
Six-monthly by two payments, with a surcharge of roughly 5%.
Monthly Direct Debit, with the same rough 5% surcharge. Auto-renews each year as long as the MOT remains valid.
What happens if you drive untaxed
Untaxed vehicles are picked up by ANPR cameras and monthly DVLA cross-checks against the Motor Insurance Database. The first penalty is an automated £80 fine, halved if paid within 28 days. Escalation can reach a court fine of up to £1,000 or five times the annual tax, whichever is higher. DVLA can also clamp or impound the vehicle.
If you genuinely are not using the car, declare a SORN (Statutory Off-Road Notification) and keep it off public roads. Any unused tax is refunded automatically. Full details on our SORN status check page.
Check your VED rate now
Enter a UK registration to see the exact 2026/27 VED cost, current tax status and renewal date in seconds.
The standard rate for cars first registered after April 2017 is £200 per year. The Expensive Car Supplement adds £440 per year for years two to six on cars above the £40,000 (or £50,000 for new EVs) list-price threshold.
Do EVs really pay car tax now?
Yes. The EV exemption ended on 1 April 2025. Older EVs pay £200 a year, new EVs pay £10 in year one then £200, and from April 2026 new EVs over £50,000 also pay the Expensive Car Supplement.
Are classic cars exempt from car tax?
Yes, if they are more than 40 years old and have not been substantially changed. The keeper signs the V112 form when taxing the vehicle. The rule is rolling, so more cars become eligible each year.
Can I pay car tax monthly?
Yes. Monthly Direct Debit and six-monthly options both carry a roughly 5% surcharge compared to paying annually in one lump.
The bottom line
For most UK car owners in 2026/27, road tax is £200 per year, with a £440 supplement if the car cost more than £40,000 (or £50,000 for new EVs) when new. Older cars follow the earlier CO2-letter or cc-based systems. The rolling 40-year historic exemption is the only route to zero tax now that EVs are no longer exempt.
