Drivers face £40 car tax rise from this date in | Tech News
Motorists throughout the UK are set to be hit with car tax rises of up to £40 per vehicle from this actual date in 2026. Vehicle Excise Duty (VED) will increase yearly in line with Retail Price Index (RPI) inflation with 2026 set to be no completely different.
Next yr, VED charges are set to increase on April 1, 2026 with petrol, diesel and electric car homeowners all set to face rises. However, it’s essentially the most polluting autos that will probably be most affected and face the upper VED band will increase. Experts at Pete Barden defined how the present RPI inflation predictions might influence on charges hitting drivers subsequent Spring.
Pete Barden defined: “Every autumn, the September inflation data becomes a key figure for drivers – because it’s used to set the following April’s Vehicle Excise Duty (VED) rates. 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%. For many motorists, this could mean paying £10–£40 more a year depending on their vehicle’s emissions band.”
Cars registered between 2001 and 2017 pay VED charges on a sliding scale of emission bands. Band A is for vehicles emitting up to 100 g/km of CO2, with motorists falling into this class hit with simply £20 payments this yr.
These charges slowly increase till the very best polluting vehicles, emitting over 255g/ok of CO2, pay £760 each year. Models registered after 2017 transfer onto the new normal charge, which is at present charged at £195 per yr.
Electric vehicles had been exempt from street tax charges however this luxurious was axed final yr, with EVs liable to pay the usual VED charges from April 2025.
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