New car tax UK 2026 rules are easy to underestimate, especially if you are buying an electric car and still expect it to be exempt. Vehicle Excise Duty, usually called VED or road tax, changed again on 1 April 2026. Most new cars now move to a £200 standard annual rate after their first year, while the first-year bill depends on official CO2 emissions. Electric cars are no longer free to tax, and some higher-priced models can also attract the expensive car supplement.
The important detail is the registration date, not simply when you place the order or collect the keys. The rates below apply to cars first registered from 1 April 2026 to 31 March 2027. A car registered in January, February or March 2026 falls under the previous tax-year figures.
How new car tax works in 2026
For a new car, the first 12 months of VED are charged at a first-year rate based on the vehicle’s certified CO2 emissions. Cleaner cars pay less, while high-emission models can face a substantial upfront charge. From the second tax payment onwards, the normal standard rate is £200 a year for petrol, diesel, hybrid and electric cars registered under the post-April 2017 system.
First year car tax is usually included in the dealer’s on-the-road price, but it is not free. Ask for a written breakdown, especially when comparing engines or trims that may fall into different emissions bands.
VED rates 2026 for the first year
Zero and lower-emission cars
A zero-emission car registered from 1 April 2026 pays £10 for its first year. Cars emitting 1 to 50g/km pay £115, while the 51 to 75g/km band costs £135. For emissions of 76 to 90g/km, the first-year charge is £280.
Typical petrol, diesel and hybrid bands
The first-year rate is £365 for cars emitting 91 to 100g/km, £405 for 101 to 110g/km, and £455 for 111 to 130g/km. A vehicle in the 131 to 150g/km band costs £560 for its first year. Many family SUVs and larger petrol cars can sit in these bands.
Higher-emission cars
The charges rise sharply above 150g/km. Cars emitting 151 to 170g/km pay £1,410 in the first year. The rate is £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 vehicles emitting more than 255g/km.
Some diesel cars that do not meet the required Real Driving Emissions step 2 standard can be charged as though they were in the next higher first-year band. Confirm the vehicle’s RDE2 status with the dealer rather than assuming every new diesel qualifies for the standard figure.
Electric car tax UK buyers now need to budget for
The old assumption that an EV automatically has zero road tax is no longer correct. A new zero-emission car registered in the 2026-27 tax year pays £10 initially and then £200 a year at the standard rate. Electric cars registered between 1 April 2017 and 31 March 2025 also pay the £200 standard rate, while older EVs can fall under different rules.
Hybrids have lost their former £10 annual alternative-fuel discount. A hybrid registered on or after 1 April 2017 now pays the same £200 standard rate. Its first-year charge still depends on CO2 emissions, so a plug-in hybrid does not automatically qualify for the zero-emission rate.
The expensive car supplement can change the real cost
List price is the key figure for the expensive car supplement, not the discounted amount you negotiate. For petrol, diesel and hybrid cars, the threshold remains a list price of more than £40,000. For qualifying zero-emission cars registered from 1 April 2025, the threshold increased to more than £50,000 from 1 April 2026.
The supplement is £440 a year and is added to the £200 standard rate for five years, starting with the second year of tax. That makes the annual bill £640 during those years. Once the five supplement years have ended, the car returns to the standard rate in force at that time.
Consider a new electric car with a list price of £48,500. It pays £10 in year one and, under the 2026 rules, avoids the expensive car supplement because it does not exceed the £50,000 EV threshold. Its expected charge from year two is £200 a year. A similar EV listed at £52,000 pays the same £10 first-year rate, but years two to six cost £640 each at current rates. That £2,200 supplement over five years can easily outweigh a modest dealer discount.
What to check before signing a new-car order
Ask the dealer for the exact WLTP CO2 figure, first-year VED charge, published list price and expected annual tax from year two. Check whether factory-fitted options push the relevant list price over the expensive-car threshold. Also confirm the expected registration date if delivery is close to 1 April, because tax rates normally change at the start of a new financial year.
Do not compare cars using the first-year figure alone. A low-emission petrol car and an EV may have very different first-year charges, yet both can move to the same £200 standard rate. Add the expensive car supplement where applicable and calculate at least six years of ownership costs. Useful related topics to review include electric car running costs, the true cost of buying a new car, and new-car depreciation.
Frequently asked questions
How much is road tax for a new electric car in 2026?
A zero-emission car first registered from 1 April 2026 pays £10 for the first year and then the £200 standard annual rate. An additional £440 annual supplement can apply in years two to six if the EV’s list price is more than £50,000.
Is the £200 standard rate paid in the first year?
Not usually. The first year is charged according to the vehicle’s CO2 emissions. The £200 standard rate generally applies from the second tax payment onwards.
Does a dealer discount reduce the expensive car supplement?
No. Eligibility is based on the car’s published list price rather than the discounted transaction price. A car can therefore remain liable even when you pay less than the threshold after negotiation.
Will VED rates stay the same after March 2027?
Not necessarily. Rates can be changed by the government, commonly from 1 April. Check the current official vehicle tax rates before ordering or registering a car, particularly when delivery crosses into a new tax year.
Budget for the tax, not just the showroom price
The headline change for 2026 buyers is that virtually every new car now carries an ongoing VED cost, including electric vehicles. The biggest surprises tend to come from high first-year emissions charges and the expensive car supplement. Before committing, confirm the registration date, CO2 band and list price, then include the first six years of tax in your ownership budget. That gives a much clearer comparison than relying on a monthly finance payment or an outdated promise of “zero road tax.”