The latest Vehicle Excise Duty (VED) rates for April 2026 have been published, showing significant increases for many vehicle owners starting April 1, 2026. Notably, some high-emission vehicles could face charges as high as £5,690 in their first year.
According to Confused.com, the standard annual rate for most new petrol and diesel cars after the first year will rise from £195 in 2025/26 to £200 in 2026/27. Zero-emission vehicles will benefit from a reduced initial rate of just £10, before moving to the standard £200 rate thereafter.
The first-year tax rate for all cars has increased, closely linked to CO2 emissions. The highest band for emissions has been boosted by £200, reaching a staggering £5,690. Expensive cars valued over £40,000 face an additional supplement for five years, making ownership more costly.
New vehicles are taxed in the first year based on their CO2 emission levels—the higher the emissions, the higher the tax. The following are the 2026/27 VED rates for petrol, diesel, alternative fuel, and zero-emission cars registered on or after April 1, 2026:
CO2 Emissions (g/km) - First Year Tax Cost
0: £10
1-50: £115
51-75: £135
76-90: £280
91-100: £365
101-110: £405
111-130: £455
131-150: £560
151-170: £1,410
171-190: £2,270
191-225: £3,420
226-255: £4,850
256+: £5,690
Diesel cars that meet Real Driving Emissions (RDE) standards will have different pricing structures. After the first year, most vehicles pay the standard annual rate of £200 starting April 1, 2026. For vehicles priced over £40,000, an additional £440 supplement applies for the first five years. For zero-emission vehicles, this threshold increases to £50,000 from April 1, 2026.
Vehicles registered between March 1, 2001, and April 1, 2017, have their VED determined by a different CO2 emissions scale. The rates for 2026/27 in this category are as follows:
Band - CO2 Emissions (g/km) - Tax Cost
A: Up to 100 - £20
B: 101-110 - £20
C: 111-120 - £35
D: 121-130 - £170
E: 131-140 - £200
F: 141-150 - £225
G: 151-165 - £275
H: 166-175 - £325
I: 176-185 - £360
J: 186-200 - £410
K: 201-225 - £445
L: 226-255 - £760
M: Over 255 - £790
Of note, Band K includes vehicles with CO2 emissions over 225g/km but registered before March 23, 2006.
These changes make it more expensive to own and operate higher-emission vehicles, encouraging drivers to consider cleaner alternatives.