New car tax bands coming in 2026 for all electric | Tech News
Every electric car proprietor in the UK is set to be hit with increased car tax charges from April 2026 as half of main Vehicle Excise Duty (VED) updates. VED charges rise relying on Retail Price Index (RPI) inflation each April, with 2026 set to be no exception.
Specialists at Pete Barden have predicted VED charges are prone to rise by round 4.6% subsequent yr, with customary price charges, first-year expenses and Expensive Car Supplement charges all set to rise. The transfer might see electric car house owners paying up to £20 more to make use of the highway in a blow to these making the swap.
Pete Barden stated: “The latest figures from the Office for National Statistics confirm that the headline inflation level held steady at 3.8% in September 2025, the same as in August.
“While the Government typically bases VED rises on the Retail Prices Index (RPI) rather than CPI, the two measures tend to move in similar directions – and RPI is still expected to hover around 4.6% for September, according to forecasts from analysts.
“That means drivers should brace for another inflation-linked rise in road tax from April 2026, with costs for new and existing vehicles likely to climb by a similar percentage – around 4.6%.”
Electric vehicles was utterly exempt from VED charges however this modified in April 2025 when motorists have been hit with expenses for the primary time. According to Pete Barden, the present customary VED price of £195 is prone to rise by round £9 in 2026 with annual charges predicted to take a seat at £204 per yr.
Brand new electric car house owners are supplied some reductions, with house owners at the moment paying simply £10 in yr one. The Expensive Car Supplement, an additional charge issued to house owners of vehicles priced at over £40,000, are additionally set to increase.
The hefty record price of many electric autos means many EV house owners pay the extra £425 per yr price. However, specialists predict this to increase to £445 from 2026, that means highway customers should cough up £20 more.
The £204 customary VED price on prime of the Expensive Car Supplement means many EV house owners face expenses of round £449 from April 2026.
Pete Barden added: “While 4–5% may not sound huge, it adds up – especially alongside other motoring costs like fuel, insurance, and servicing that have all been rising faster than wages.”
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