Millions of UK motorists are set to pay more to keep their cars on the road after the government confirmed new Vehicle Excise Duty rates for 2026. The tax hikes, which will come into force on 1 April 2026, will affect petrol and diesel cars first registered between 2001 and 2017.
How Much Will Your Car Tax Rise?
Analysis by motoring experts Pete Barden has detailed the exact increases drivers can expect. The rises, which typically follow the Retail Price Index (RPI) measure of inflation, will see annual bills climb by up to £30. The standard VED rates operate on a sliding scale based on a vehicle's official CO2 emissions, with 2026 charges ranging from £20 to a substantial £790.
The steepest increase targets the most polluting vehicles. Owners of cars in Band M, for vehicles emitting over 255g/km of CO2, will see their annual duty jump by £30. Those in Band L (226-255g/km) face a £25 rise.
Full Breakdown of the 2026/27 VED Rates
The confirmed standard rates for the 2026/27 financial year are as follows:
- Band A (up to 100g/km CO2) - £20 (no change)
- Band B (101-110g/km) - £20 (no change)
- Band C (111-120g/km) - £35 (up £5)
- Band D (121-130g/km) - £170 (up £5)
- Band E (131-140g/km) - £200
- Band F (141-150g/km) - £225 (up £10)
- Band G (151-165g/km) - £275 (up £10)
- Band H (166-175g/km) - £325 (up £10)
- Band I (176-185g/km) - £360 (up £15)
- Band J (186-200g/km) - £410 (up £15)
- Band K (201-225g/km) - £445 (up £15)
- Band L (226-255g/km) - £760 (up £25)
- Band M (over 255g/km) - £790 (up £30)
Budget Confirms Inflation-Linked Uprating
The move follows Chancellor Rachel Reeves's recent Budget announcement. HM Revenue and Customs (HMRC) has stated that legislation in the Finance Bill 2025-26 will formally uprate VED rates for cars, vans, and motorcycles in line with RPI inflation for the 2026-27 period.
An HMRC announcement confirmed: "This will take effect from April 1, 2026." This means drivers of older, typically higher-emission petrol and diesel models will feel the biggest financial impact from next spring, adding to the ongoing cost-of-motoring pressures.
