A Guide To Car Road Tax 2026

Car road tax, also known as Vehicle Excise Duty (VED), is based on the CO2 emissions produced by your vehicle, the registration date and fuel type.

In our guide to car road tax, we’ll help explain everything you need to know about VED, how it applies to you, and what you can expect to pay for your vehicle, with the new changes effective from April 1, 2026.

Paying Vehicle Excise Duty (VED) is a legal requirement for all UK vehicles. Technically, there is no such thing as ‘road tax’; VED is the tax for owning a vehicle and driving it in the UK. The only way you can be excluded from paying is by declaring your vehicle as SORN and keeping it off the road.

For all cars, VED is an annual payment you make to the government to drive on UK roads. This can also be paid via direct debit. The revenue generated by this cost helps the UK government to maintain and improve the country’s road infrastructure, as well as upgrading road surfaces and reducing congestion.

Car road tax can hugely vary between vehicles, but there are a few factors at play before we get into the different car tax bands.

The two main factors that determine the VED you pay are:

• CO2 emissions: For cars registered after March 2001 and before April 2017, VED rates are usually determined by the amount of CO2 emissions a car produces. Typically, the lower the emissions, the lower the tax. This doesn’t tend to change much between diesel and petrol vehicles.
• Fuel type: Vehicles running on alternative fuels, such as electric or hybrid cars, are subject to different VED rates compared to traditional petrol and diesel vehicles.

Other factors can include:

• Car price (Luxury Car Supplement): Vehicles (cars or motorhomes) with a list price over £40,000 for petrol and diesel models, or £50,000 for electric vehicles, are subject to the Luxury Car Supplement. This adds an additional £440 per year to the standard VED rate for five years, starting from the second year of registration.
• Engine Size: Older cars (registered before March 2001) typically have their VED based on engine size rather than CO2 emissions. These vehicles are usually divided into two bands depending on whether the engine capacity is above or below 1,549cc.
• Electric Vehicle Tax: Until April 1, 2025, electric vehicles were exempt from paying VED due to their zero emissions. Under the VED rates for 2025, EVs are now required to pay VED starting at £10 for the first year and £200 for each year following.

Over the years, the UK Government has adapted how it charges VED, as CO2 emissions in newer vehicles have reduced.

Cars registered in this time have their VED reviewed based on their CO2 emissions and fuel type. This is broken down into 13 categories as follows:

Source: https://www.gov.uk/vehicle-tax-rate-tables/rates-for-cars-registered-on-or-after-1-march-2001

For cars registered after April 2017, car tax is calculated using CO2 emissions for the first year, followed by a flat standard rate from the second year onwards.

You’ll pay a VED rate based on a vehicle’s CO2 emissions the first time it’s registered.

You have to pay a higher rate for diesel cars that do not meet the Real Driving Emissions 2 (RDE2) standard for nitrogen oxide emissions.

Source: https://www.gov.uk/vehicle-tax-rate-tables

Source: https://www.gov.uk/vehicle-tax-rate-tables

CO2 emission details are shown on the car’s V5C registration certificate, or you can find emission details online.

If you find yourself wondering if your vehicle is already taxed, you can check by using the free vehicle tax checker on the government website.

You’re able to tax a car for six or twelve months. When your car tax is due to expire, you will receive a tax reminder letter, also known as a V11.

You can pay for your vehicle tax either by credit or debit card, or by setting up a direct debit on the Government website.

As paying for your car tax is a legal requirement for motorists, the police and supporting enforcement agencies use a network of Automatic Number Plate Recognition (ANPR) cameras.

If your vehicle registration number is scanned and you haven’t paid for your vehicle tax, then you will be fined £80. If you do not pay the fine, then there is a chance your vehicle could be clamped, crushed, or your details will be passed onto a debt collection agency.

Yes, there are times when a vehicle may be exempt from paying VED. These are:

• Vehicles used by a disabled person (subject by eligibility criteria)
• Vehicles registered to transport disabled people
• Vehicles over 40 years old are exempt
• Mobility vehicles with a maximum speed of 8mph
• Certain vehicles not used on public roads
• Steam vehicles - these do not produce CO2 emissions
• Vehicles used for agricultural purposes, such as tractors

If you’ve registered your vehicle under Statutory Off-Road Notification (SORN), you will receive a refund for the remaining vehicle tax you’ve paid. You must keep your vehicle off the road if you’ve registered it as SORN.

If you’re looking to avoid paying the new Luxury Car Supplement, browse our range of zero-emission cars under £50,000 and other vehicles priced below £40,000.

Make sure to head to our blog for all the latest news and advice for keeping your pride and joy feeling like brand new!