Car Tax Cost Comparison UK 2026: Which Vehicles Have the Highest and Lowest Tax?

April 13, 2026 in United Kingdom — Vehicle Excise Duty (road tax) costs vary dramatically between the lowest and highest CO2 emission vehicles — from £0 to £2,605 per year. This comprehensive comparison guide shows exactly which vehicles fall into each VED band and how to identify the lowest-tax cars on the market in 2026.

Understanding the Full VED Range

UK road tax bands span from zero emissions to high-performance vehicles. The annual cost difference between the cheapest and most expensive vehicles to tax is over £2,600 per year — a significant ownership cost factor that should influence purchasing decisions.

Zero to Low Cost: £0-205 Per Year

• Post-April 2025 pure EV: £195/year from year 2 (first year: £0). Pre-April 2025 EVs: £0 indefinitely.
• Plug-in hybrids (1-50g/km): £195/year from year 2. First year: £0.
• Low-hybrid (51-75g/km): £205/year from year 2. First year: £0.

Low to Medium Cost: £235-285 Per Year

• 76-90 g/km: £235/year from year 2 (first year: £10)
• 91-100 g/km: £265/year from year 2 (first year: £10)
• 101-110 g/km: £285/year from year 2 (first year: £10-£30 depending on exact band)

Medium Cost: £345-445 Per Year

• 111-130 g/km: £345/year from year 2 (first year: £30-£110)
• 131-150 g/km: £445/year from year 2 (first year: £130-£205)

High Cost: £600-755 Per Year

• 151-165 g/km: £600/year from year 2 (first year: £195)
• 166-175 g/km: £600/year from year 2 (first year: £245)
• 176-180 g/km: £600/year from year 2 (first year: £255)
• 181-185 g/km: £755/year from year 2 (first year: £260)
• 186-200 g/km: £755/year from year 2 (first year: £260-£300)

Very High Cost: £1,280-2,605 Per Year

• 201-225 g/km: £1,280/year from year 2 (first year: £580-£680)
• 226-255 g/km: £1,870/year from year 2 (first year: £1,000-£1,200)
• Over 255 g/km: £2,605/year from year 2 (first year: £1,200-£2,605)

Highest Tax: Vehicles Over £40,000

For vehicles registered from April 2017 onwards with a list price over £40,000, an additional annual supplement of £410 applies for years 2-5 of ownership. This adds significantly to the annual cost for premium vehicles:

Lowest Tax Cars Available in 2026

For buyers prioritising road tax savings, the following categories offer the lowest ongoing VED costs: Related: Car Tax Cost Comparison UK 2026 | Car Tax for New Drivers | Car Tax for New Drivers | Hidden DVLA Rules That Cost You Money — UK Guide.

• New pure electric vehicles: £0 first year, £195/year thereafter — the same rate as the cheapest petrol cars but with zero fuel costs and lower BiK for company car users
• Pre-April 2025 EVs: £0 indefinitely — the absolute lowest road tax possible
• Toyota Prius / Toyota Aqua: Pre-2017 models with CO2 under 100g/km pay just £130/year — significantly lower than post-2017 equivalents
• Plug-in hybrids from major manufacturers: Hyundai Ioniq PHEV, Toyota Prius PHEV, Kia Niro PHEV all at £195/year from year 2

Highest Tax Vehicles to Avoid

These vehicle categories have the highest VED costs — consider alternatives if road tax is a budget concern:

• Performance SUVs with large engines: Many emit 200g/km+ and cost £755-£1,280/year
• Luxury performance cars: High-power engines and heavy bodies often push into the 200g/km+ bands
• Diesel large SUVs and pickups: High torque diesels often exceed 180g/km and may also be subject to the premium supplement if over £40k list price

5-Year Cost Comparison

Over a 5-year ownership period, the cumulative road tax cost difference between the cheapest and most expensive vehicle types is substantial:

• Post-2025 EV: £0 (yr1) + 4 x £195 = £780 total over 5 years
• Band E petrol (150g/km): £130 (yr1) + 4 x £445 = £1,910 total over 5 years — £1,130 more than EV
• Band H petrol (200g/km): £260 (yr1) + 4 x £755 = £3,280 total over 5 years — £2,500 more than EV
• Band J petrol (225g/km): £580 (yr1) + 4 x £1,280 = £5,700 total over 5 years — £4,920 more than EV

Conclusion

Road tax costs range from £0 (pre-2025 EVs) to £2,605/year (highest-emission vehicles). Post-April 2025 EVs cost £780 over 5 years, while high-emission Band J vehicles cost £5,700 over 5 years — a £4,920 difference. The premium supplement adds £410/year for vehicles over £40,000 in years 2-5. Use GOV.UK VED rate tables to find the exact tax band for any specific vehicle before buying.

Frequently Asked Questions

Q: How much is car tax (VED) in the UK 2026?
Car tax rates in the UK depend on your vehicle's CO2 emissions and list price. Standard rates start from £190 per year for petrol and diesel cars, with zero-rated VED for EVs. First-year rates vary from £0 to £2,605 depending on emissions. Additional premiums apply for vehicles over £40,000.

Q: How do I check if my car is taxed online?
You can check your vehicle's tax status for free on the Gov.uk website at gov.uk/check-vehicle-tax. You'll need your vehicle's registration number (number plate). You can also check via the Motor Insurance Database to verify road tax and insurance status simultaneously.

Q: Can I get a refund on car tax if I sell my vehicle?
Yes — if you sell or scrap your vehicle, you can claim a refund on any full months of remaining road tax. Contact DVLA with the V11 reminder letter or apply online at gov.uk. Refunds are usually processed within 4-6 weeks.

Q: Is road tax refund available when transferring ownership?
No — road tax does not transfer with the vehicle. When you sell your car, the tax is automatically cancelled and any remaining months are refunded to you by DVLA. The new owner must tax the vehicle immediately. As a buyer, always verify the vehicle's tax status before purchasing.

Q: What is the luxury car tax threshold in the UK 2026?
The additional rate for vehicles over £40,000 (list price) adds £410 per year to standard VED rates for years 2-6 of registration. This surcharge brings the annual cost for high-emission vehicles over £40,000 to around £600-690 per year. Pure EVs under £40,000 pay zero VED.