New car tax bands confirmed – most petrol and | Tech News
Petrol and diesel homeowners have been hit with powerful new car tax bands in 2026, with virtually each driver affected. Vehicle Excise Duty (VED) car tax bands increase each April consistent with Retail Price Index (RPI) inflation and 2026 is no totally different.
Petrol and diesel homeowners are most affected by VED charges, with costs often calculated utilizing vehicle emissions. Some combustion homeowners have confronted hikes of up to £200 in 2026, pushing payments over £5,500 for some. Firstly, automobiles registered after 2017 are positioned into the usual VED charge regardless of their fuel kind.
These costs elevated from £195 to £200 from April 1, a £5 increase for all petrol, diesel and electric automobiles. Meanwhile, the Expensive Car Supplement, an further charge issued to automobiles with a listing price of over £40,000 (£50,000 for EVs) jumped to £440.
Brand new automobiles beneath first-year tax guidelines are barely totally different, with automobiles paying an inflated charge in 12 months one. The most polluting automobiles, emitting over 255/km of CO2, are among the many most affected, with payments up £200 to hit £5,690 per 12 months.
Slightly cleaner automobiles emitting between 226 and 255g/km of CO2 are subsequent, with motorists charged £4,850 each year. Cars registered between 2001 and 2017 are among the many most impacted, with automobiles positioned into one of 13 tax bands relying on how polluting they’re.
Once again, fashions emitting over 255g/km of CO2 pay the most with street customers placing their fingers of their pockets for £790 a 12 months. Models emitting between 226 and 255g/km again pay barely much less, however costs are nonetheless at a hefty £760 each year.
Finally, automobiles registered earlier than 2001 and after 1986 are additionally affected by tax hikes, with charges based mostly on the dimensions of the engine. Models fitted with an engine above 1549cc now pay £15 more, with payments at £375 each year.
Meanwhile, automobiles with engines of 1549cc or under are paying £10 more, with value now at £230 per 12 months. Cars registered earlier than 1986 are utterly exempt from VED charges due to the historic tax exemption guidelines.
This is a rolling rule that gives a 100% low cost for homeowners driving a traditional car first registered more than 40 years in the past.
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