April 29, 2026 in London, United Kingdom — The UK's Vehicle Excise Duty (VED) system underwent significant changes that remain in effect for 2026. From £0 first-year tax for electric vehicles to £2,605 for high-emission cars, and a premium surcharge of £355/year for cars over £40,000 — understanding VED is essential for any UK car buyer in 2026.
Understanding UK VED Road Tax 2026
UK road tax (VED) operates in two stages: a first-year rate based on CO2 emissions, followed by a standard annual rate. The system was reformed in April 2017 to simplify the ongoing annual charge while keeping first-year rates as a carbon incentive.
First-Year VED Rates by CO2 Band
First-year VED applies only in the 12 months following first registration. The rate is determined by your car's CO2 emissions:
| CO2 Emissions (g/km) | First-Year VED Rate | Vehicle Type |
|---|---|---|
| 0 | £0 | Electric vehicles |
| 1-50 | £10 | Low-emission hybrids |
| 51-75 | £30 | Plug-in hybrids |
| 76-90 | £135 | Hybrid/gas vehicles |
| 91-100 | £170 | Modern efficient petrol |
| 101-110 | £190 | Standard petrol |
| 111-120 | £210 | Average petrol |
| 141-150 | £350 | Large family cars |
| 166-175 | £600 | Large petrol/SUV |
| 191-200 | £1,005 | Performance cars |
| 226-255 | £2,245 | High-performance |
| Over 255 | £2,605 | Super-high emission |
Standard Annual VED: £190/year
After the first year, all cars registered after March 2001 pay the same standard rate of £190 per year. This flat rate applies regardless of CO2 emissions — a £30,000 Ford Focus and a £120,000 Porsche 911 both pay £190/year from year 2 onwards. The CO2 band system only applies in year one.
Premium Car Surcharge: £355/year
Cars with a list price (P11D value) over £40,000 pay an additional £355 per year for the first 5 years of registration. This is added to the standard £190 rate, making the total annual payment £545 for premium cars.
| Car Value | Year 1 (First-Year) | Years 2-6 | Year 7+ |
|---|---|---|---|
| £25,000 petrol car | CO2 band rate | £190/year | £190/year |
| £45,000 EV | £0 (first year) | £545/year | £190/year |
| £55,000 SUV | CO2 band rate | £545/year | £190/year |
| £100,000 luxury car | CO2 band rate | £545/year | £190/year |
Electric Vehicles: The Tax Journey
EVs have a unique tax position in 2026:
- Year 1: £0 first-year VED — EVs qualify for the 0g/km rate
- Years 2-6: £190/year (standard rate) — no more free road tax for EVs after year 1
- If over £40,000: £545/year for years 2-6 (premium surcharge applies)
- Year 7+: £190/year — all cars treated the same
This represents a change from the earlier EV incentives, which offered reduced rates for several years. The government shifted EV VED treatment to match petrol/diesel cars to fund road maintenance.
Premium Car Surcharge Examples
| Car | P11D Price | Year 1 | Years 2-6 | Year 7+ |
|---|---|---|---|---|
| Tesla Model 3 RWD | £42,000 | £0 (EV) | £545/year | £190/year |
| BMW 530e plug-in | £55,000 | £10 (PHEV) | £545/year | £190/year |
| Mercedes EQC | £70,000 | £0 (EV) | £545/year | £190/year |
| Range Rover Sport | £85,000 | CO2 rate | £545/year | £190/year |
| Porsche 911 | £110,000 | CO2 rate | £545/year | £190/year |
Historic Vehicle: £0 Road Tax
Cars 40 years or older registered in the Historic Vehicle class pay £0 road tax regardless of their original list price or CO2 emissions. A £200,000 Aston Martin DB5 from 1964 pays £0 VED — the premium car surcharge does not apply to historic vehicles.
How CO2 Emissions Affect First-Year Tax
The first-year VED is directly tied to CO2 emissions — lower emissions mean lower first-year tax:
| Vehicle Type | CO2 (g/km) | First-Year VED | Total Years 2-6 |
|---|---|---|---|
| EV (all types) | 0 | £0 | £950 (£190 x 5) or £2,725 if £40k+ |
| Plug-in hybrid (small) | 50 | £10 | £950 or £2,725 |
| Plug-in hybrid (large) | 75 | £30 | £950 or £2,725 |
| Hybrid SUV | 130 | £260 | £950 or £2,725 |
| Large petrol SUV | 200 | £1,005 | £950 or £2,725 |
| Performance petrol | 255 | £2,245 | £950 or £2,725 |
Conclusion
UK VED in 2026 combines first-year CO2-based rates (£0-£2,605) with a standard annual rate of £190/year. Cars over £40,000 pay an additional £355/year surcharge for the first 5 years. EVs pay £0 first-year but lose their exemption from year 2 onwards. The system rewards low-emission vehicles in year one while creating a sustainable road tax revenue stream. Use our UK Road Tax Calculator to find VED for your specific vehicle.
Disclaimer: VED rates based on DVLA data as of April 2026. Confirm current rates at GOV.UK before purchasing or registering a vehicle.
Official Resources: GOV.UK Vehicle Tax | DVLA Tax Calculator | Historic Vehicles