How Much Is Car Tax UK 2026? The Honest Answer

How much is car tax UK? The honest answer is: it depends entirely on your vehicle's CO2 emissions, fuel type, and first registration date. Road tax ranges from £0 for electric vehicles to £2,605 for the highest-emission petrol and diesel cars. Here is the complete breakdown.

How Much Is Road Tax: The Exact 2026 Rates

Car tax UK costs follow a graduated system based on CO2 emissions. For vehicles registered from April 2025, the first-year rates are:

Electric vehicle (0g/km): £0 first year — £10/year after
Plug-in hybrid (up to 50g/km): £10 first year — £50/year after
Hybrid (51-75g/km): £30 first year — £50/year after
Small petrol (91-100g/km): £165 first year — £50/year after
Average family car (131-150g/km): £600 first year — £190/year after
Large diesel SUV (171-190g/km): £1,350 first year — £190/year after
Supercar (over 255g/km): £2,605 first year — £190/year after

How Much Is Car Tax After the First Year?

After the first year, all vehicles pay standard annual rates. Alternative fuel and electric vehicles pay £10/year for years 2-6. Petrol and diesel vehicles pay £190/year for years 2-6. From year 7 onwards, all vehicles pay the standard £190 annual rate — including electric vehicles.

How Much Is Road Tax for Used Cars?

Used cars pay the standard annual rate for their CO2 band — not a first-year rate. A used electric car pays £10/year. A used petrol car emitting 150g/km pays £190/year. The vehicle's age does not affect the VED rate — only the first registration date matters. Related: How Much Is Car Tax UK 2026? The Honest Answer | How Much Is Car Tax UK 2026? The Honest Answer | Car Tax Rates UK 2026 | Car Insurance Groups and Vehicle Tax UK 2026.

Hidden Car Tax Costs to Factor In

When asking how much is car tax UK, remember there are related costs that increase your total motoring tax burden:

Company car Benefit-in-Kind tax — can add thousands annually for high-value vehicles
London Congestion Charge — £15/day for high-emission vehicles entering central London
Vehicle Excise Duty surcharges — none currently for vehicles over £40,000 (abolished 2025)
Premium fuel duty — included in fuel price, not separate road tax

Conclusion

How much is car tax UK? From £0 to £2,605 — the answer is in your vehicle's CO2 emissions. Use our car tax calculator to get an exact quote for any vehicle registration number. For the official VED table, visit GOV.UK VED rate tables.

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.

Questions

How is road tax calculated in India?

Road tax in India is calculated based on the vehicle's ex-showroom price, engine capacity, and state-specific rates. Most states charge road tax as a percentage of the vehicle value (typically 2-10%) or at fixed rates based on vehicle category. Some states offer concessions for electric vehicles and hybrid cars. Road tax is a one-time payment for private vehicles in most states.

Is road tax the same across all states in India?

No, road tax varies significantly across Indian states. Each state has its own road tax structure with different rates and calculation methods. For example, Karnataka charges 2% for cars while Maharashtra charges up to 8%. Some states like Delhi have lower road tax rates. Always check your state's specific road tax rates before purchasing a vehicle.

How to pay road tax online?

Road tax can be paid online through the Parivahan portal, state transport department websites, or VAHAN portal. Select 'Tax Payment' service, enter vehicle registration number, calculate applicable tax, make online payment, and download the receipt. For interstate purchases, road tax is paid at the time of registration in the new state.

What happens if road tax is not paid?

Failure to pay road tax can result in penalties, vehicle seizure, and fines during traffic checks. Road tax default may also affect vehicle insurance validity and renewal. Some states impose ongoing annual tax for commercial vehicles. Always carry proof of road tax payment while driving.

Can road tax be claimed back when selling a vehicle?

In most Indian states, road tax is non-refundable upon vehicle sale. The tax is considered paid for the remaining validity period but cannot be claimed back. Some states allow refund of unused road tax period when transferring registration to another state. Check with your state's transport department for refund policies.