Some motorists are picking up a hefty bill from this month after new car tax charges took effect. From April 1, 2026 dozens of vehicles will face a bill of £5,690 for their Vehicle Excise Licence after rates were increased by Chancellor Rachel Reeves.
The bill is not negotiable and the majority of vehicles must be taxed to be on the roads. Being the registered keeper of an untaxed vehicle in the UK leads to an automatic £80 fine, which is reduced to £40 if paid within 28 days. Failure to pay can see the registered keeper referred to a debt collection agency.
Starting this month the standard tax rate for all petrol, diesel or hybrid cars registered after 2017 rises to £200. Anyone owing an electric car under a year old must also pay a flat £200 rate.
This means if you pay in monthly instalments over a year, your total car tax cost will be £210. However if your vehicle had a list price of more than £40,000 when it was first sold, or £50,000 if your car is electric, then you may also have to pay the Expensive Car Supplement, also known as the luxury car tax.
This will mean paying an additional £425 for the vehicle’s annual car tax costs for a period of five years. The exact fee to pay depends on the year the vehicle was first registered, the type of fuel it uses and its CO2 emissions. There is also a major rise in the cost for some drivers who will have to pay £5,690 when they buy their car.
Motorists must pay a higher rate for diesel cars that do not meet the Real Driving Emissions 2 (RDE2) standard for nitrogen oxide emissions. To checkthis you can ask your vehicle’s manufacturer if it meets the RDE2 standard.
First tax payment when you register the vehicle
CO2 emissions Diesel cars (TC49) that meet the RDE2 standard, petrol cars (TC48), Alternative fuel and zero emission cars All other diesel cars (TC49)
- 0g/km £10 £10
- 1 to 50g/km £115 £135
- 51 to 75g/km £135 £280
- 76 to 90g/km £280 £365
- 91 to 100g/km £365 £405
- 101 to 110g/km £405 £455
- 111 to 130g/km £455 £560
- 131 to 150g/km £560 £1,410
- 151 to 170g/km £1,410 £2,270
- 171 to 190g/km £2,270 £3,420
- 191 to 225g/km £3,420 £4,850
- 226 to 255g/km £4,850 £5,690
- Over 255g/km £5,690 £5,690
Rates for second tax payment onwards
Petrol or diesel, Electric & Alternative Fuel
- Single 12 month payment £200
- Single 12 month payment by Direct Debit £200
- Total of 12 monthly payments by Direct Debit £210
- Single 6 month payment £110
- Single 6 month payment by Direct Debit £105
A total of 59 models from 24 manufacturers, including well-known brands such as Ford, BMW and Mercedes, are now being hit with a £5,690 levy from April 1.
The hike comes after major changes to Vehicle Excise Duty (VED) rates brought in last year, which saw certain vehicles slapped with a £2,745 increase. The Government increased first-year VED charges for petrol and diesel cars from April 2025. These fees are paid by purchasers of brand-new vehicles before dropping to the standard rate afterwards.
A comprehensive breakdown of new models producing over 255 g/km has been published:
- Lamborghini Urus 4.0 V8 BiTurbo
- BMW X6 M 4.4 V8
- BMW M8 4.4 V8
- Land Rover Defender 110 5.0 P425 V8
- Ferrari Purosangue 6.5 V12
- Rolls-Royce Ghost 6.75 V12
- Mercedes-Benz G63
- Porsche 718 Cayman 4.0 GT4
- Maserati Levante 3.8 V8
- Mercedes-Benz GLS63h
- Audi R8 5.2 FSI V10
- Porsche Cayenne 4.0T V8
- Audi SQ8 4.0 TFSI V8
- Toyota Land Cruiser 2.8D
- Ford Ranger 3.0 EcoBlue
- Audi S8 4.0 TFSI V8
- Audi RS7 4.0 TFSI V8
- Jeep Wrangler 2.0 GME
- Mercedes-Benz GLE63
- Ford Ranger 2.0 TD EcoBlue
- Aston Martin DBX 4.0 V8
- Land Rover Defender 90 5.0 P425 V8
- Range Rover 4.4 P615 V8
- Audi RSQ8 4.0 TFSI V8
- Mercedes-Benz SL55
- Jaguar F-Pace 5.0 P575 V8
- Aston Martin Vantage 4.0 V8
- Toyota Hilux 2.8D
- INEOS Grenadier 3.0P
- Mercedes-Benz AMG GT 4.0 V8
- Porsche Macan 2.9T V6
- Lamborghini Huracan 5.2 V10
- Alfa Romeo Stelvio 2.9 V6 Bi-Turbo
- Ford Mustang 5.0 V8
- Lotus Emira 3.5 V6
- Mercedes-Benz GLC63
- Bentley Bentayga 4.0 V8
- Ford Ranger 3.0 V6
- BMW Alpina XB7 4.4 V8
- Audi SQ7 4.0 TFSI V8
- Aston Martin DB12 4.0 V8
- BMW X7 M 4.4 V8
- Rolls-Royce Cullinan 6.75 V12
- Lamborghini Revuelto 6.5 V12
- Volkswagen Amarok 3.0 TDI
- Ferrari Roma 3.8T V8
- Chevrolet Corvette Stingray 6.2 V8
- Range Rover 4.4 P530 V8
- Maserati MC20 3.0 V6
- Mercedes-Benz G400D
- Maserati Levante 3.0 V6
- Bentley Flying Spur 4.0 V8
- Bentley Continental 4.0 V8
- BMW X5 M 4.4 V8
- Audi RS6 4.0 TFSI V8
- Porsche 911 3.7T 992 Turbo
- Bentley Continental 6.0 W12
- Range Rover Sport 4.4P V8
- McLaren GT 4.0T V8
Cars registered between 1 March 2001 and 31 March 2017
Band and CO2 emission Single 12 month payment
- A: Up to 100g/km £20
- B: 101 to 110g/km £20
- C: 111 to 120g/km £35
- D: 121 to 130g/km £170
- E: 131 to 140g/km £200
- F: 141 to 150g/km £225
- G: 151 to 165g/km £275
- H: 166 to 175g/km £325
- I: 176 to 185g/km £360
- J: 186 to 200g/km £410
- K*: 201 to 225g/km £445
- L: 226 to 255g/km £760
- M: Over 255g/km £790
Motors priced above £40,000 face the VED premium vehicle tax supplement
New cars with a purchase price of more than £40,000 (including any added features) will attract an additional annual payment of £425 (rising from £410) on top of regular yearly VED motor tax costs, payable from years one to six of ownership.
Motorists who have spent more than £40,000 on a new car (including additional extras) will have to pay an extra £425 for five years, beginning when the vehicle is taxed for its second year. Once your motor hits its sixth year, you'll have paid an extra £2,125 in tax.
From April 1, 2026, the threshold for the so-called "luxury car tax" (the £425 surcharge) has increased to £50,000 for electric vehicles, however petrol and diesel cars will remain at the £40,000 threshold.
For older vehicles, registered before March 2001, the fee is assessed using VED engine capacity bands instead of CO2 emissions.
Electric and hybrid vehicles
Starting in April 2028, electric vehicles will face a new 'mileage levy' designed to compensate for the lost fuel duty revenue from these cars. Motorists will pay the equivalent of 3p per mile for battery electric vehicles and £0.015p per mile for plug-in hybrid vehicles.
The Chancellor said this will help fund road maintenance. This charge will increase annually in line with the Consumer Price Index. Currently, no system has been outlined for how the policy will be implemented or how drivers will need to pay. It's projected to add approximately £300 for every 10,000 miles driven in an electric vehicle.
Expensive car supplement raised for EVs
The Expensive Car Supplement was launched in 2017 and adds an extra £425 each year for five years following the first tax payment on new cars costing more than £40,000. The Budget has now lifted this limit to £50,000 for electric vehicles, meaning buyers of EVs beneath this price won't face the Expensive Car Supplement.
Vehicles over 40 years old
If a vehicle was made over 40 years ago, it will be classed as a 'historic vehicle' and won't have to pay any VED. This is unchanged from previous years.
Similarly, road tax exemptions for disabled drivers remain the same. Those eligible will continue to be completely exempt from these increases.
Context:
Car tax rises to £5,690 for 59 high-emission vehicles from major brands like Ford, BMW, and Mercedes.
Context:
This targets the most polluting cars while pushing buyers toward cleaner, lower-emission alternatives.
Context:
The luxury car supplement adds £425 annually for five years on vehicles over £40,000 (£50,000 for electric).