Vehicle Excise Duty — commonly called road tax — is one of the largest motoring costs that many drivers do not fully understand. In 2026, the VED system continues to use CO2 emissions to determine first-year rates for new cars, with standard rates applying from year two onwards. This guide breaks down every tax band and explains exactly how much you will pay.

How UK Road Tax Works in 2026

Road tax is calculated based on a vehicle's CO2 emissions, measured in grams per kilometre. The lower the emissions, the lower the tax band. Electric and zero-emission vehicles pay zero road tax, while high-emission performance cars can attract significant annual costs.

First-Year VED Rates 2026

When you register a new car for the first time, you pay a first-year rate based on its CO2 emissions:

  • Zero emissions (electric): GBP 0
  • 1 to 50g/km: GBP 10 first year
  • 51 to 75g/km: GBP 30 first year
  • 76 to 94g/km: GBP 135 first year
  • 95 to 99g/km: GBP 165 first year
  • 100 to 109g/km: GBP 185 first year
  • 110 to 119g/km: GBP 205 first year
  • 120 to 129g/km: GBP 225 first year
  • 130 to 139g/km: GBP 265 first year
  • 140 to 149g/km: GBP 305 first year
  • 150 to 164g/km: GBP 585 first year
  • 165 to 175g/km: GBP 945 first year
  • 176 to 185g/km: GBP 1,180 first year
  • 186 to 199g/km: GBP 1,615 first year
  • 200 to 225g/km: GBP 2,015 first year
  • 226 to 255g/km: GBP 2,365 first year
  • Over 255g/km: GBP 2,565 first year

Standard Annual VED Rates

From the second year of registration onwards, the standard annual rate applies. The standard rate for most cars registered from April 2017 onwards is GBP 180 per year. However, for cars with zero emissions, the rate is GBP 0, and for alternative fuel vehicles — hybrids and bi-fuel vehicles — the standard rate is GBP 170 per year.

Which Tax Band Applies to Your Car?

The DVLA assigns road tax bands based on the vehicle's CO2 emissions figure, which is recorded on the Vehicle Registration Certificate (V5C). The emissions figure can be found:

  • On the V5C registration certificate under the CO2 figure section
  • On the DVLA vehicle enquiry service at gov.uk/check-vehicle-tax
  • In the vehicle's service and maintenance logbook
  • On the manufacturer's specification sheet

The CarTax.online free calculator allows you to look up the road tax band for any UK-registered vehicle using just the registration number.

Electric and Zero Emission Cars

Electric vehicles are exempt from road tax in 2026, paying GBP 0 annual VED. This exemption has been in place since 2005 and, unlike some other EV incentives, shows no sign of being phased out in the near future. For high-value electric cars, this represents significant savings over the typical ownership period.

Vans and light commercial vehicles have a different road tax structure. Most vans pay a flat rate of GBP 320 per year for diesel-powered vehicles and GBP 290 for alternative fuel vans. Electric vans pay GBP 0.

Road Tax for Used Cars

When buying a used car, the road tax does not transfer with the vehicle. The new keeper must tax the vehicle before driving it on public roads. However, any remaining months of tax from the previous keeper's payment are refunded automatically to them, and any full months remaining are not transferred to the new keeper.

Road Tax Exemptions

Several categories of vehicles are exempt from road tax in 2026:

  • Electric vehicles (zero CO2 emissions)
  • Vehicles registered before 1 January 2025 that produce 0g/km CO2
  • Vehicles used by a disabled person (registered in the disabled vehicle class)
  • Historic vehicles over 40 years old (no longer subject to road tax)
  • Agricultural vehicles (tractors and agricultural engines)
  • Emergency service vehicles
  • Mobility scooters and powered wheelchairs

How to Tax Your Car in 2026

You can tax your car online at gov.uk/tax-vehicle, by phone, or at a post office that offers the vehicle tax service. You will need:

  • A valid MOT certificate (if the vehicle is over 3 years old)
  • An insurance certificate or cover note
  • A V11 reminder letter or the green slip from the V5C
  • A debit or credit card for payment

Direct Debit payments for road tax are available for 12-month tax periods, allowing you to spread the cost monthly. The DVLA offers monthly, 6-monthly and annual direct debit options.

Vehicle Excise Duty Evasion

Failing to tax your vehicle is a serious offence. The penalties for driving an untaxed vehicle include an immediate fixed penalty notice of GBP 80, reduced to GBP 40 if paid within 30 days. If paid to the court, the fine can reach GBP 1,000. Untaxed vehicles are identified by automatic number plate recognition cameras and are subject to immediate clamping and removal.