UK Car Tax (VED) in 2026: Bands, EVs and the Expensive Car Supplement

How VED is structured

For cars first registered on or after 1 April 2017, VED has two phases. The first year is based on official CO2 emissions — anything from a low double-figure charge for the most efficient cars to over £2,700 for the highest emitters. From year 2 onwards, almost all cars move to a flat standard rate (£190 in 2025/26 for petrol and diesel, with EVs now also paying it).

Cars first registered between 2001 and 2017 use the older 13-band CO2 system, where annual VED runs from zero to several hundred pounds based on the band. Pre-2001 vehicles use engine size: under or over 1,549cc.

The expensive car supplement

Cars with a list price (including options) above £40,000 at first registration pay an additional supplement on top of the standard rate for years 2 to 6. In 2025/26 that supplement is £410 a year, taking total annual VED for those cars to £600. EVs were previously exempt from this; from April 2025 they pay it too.

This catches a surprising number of mid-spec family cars and most premium SUVs. Always check the official manufacturer list price (P11D-style) on the V5C — not the price you actually paid, which may include discounts that don't reduce the VED list price.

Electric vehicles in 2026

From 1 April 2025, all electric cars pay VED. EVs registered from April 2025 pay £10 in year 1 and the standard £190 from year 2. EVs registered between April 2017 and March 2025 moved to the £190 standard rate from April 2025. Older EVs (pre-2017) moved into the lowest old-system band.

The expensive car supplement now also applies to EVs above £40,000, which catches almost every long-range model. This adds £410 a year for years 2 to 6 of registration. Plug-in hybrids no longer get a discount on the standard rate but still benefit from low first-year rates if their CO2 figure is low.

Vans, motorbikes and historic vehicles

Light goods vehicles (vans up to 3,500kg) pay a flat rate (£345 in 2025/26 for most). Electric vans pay the same flat rate from April 2025. Motorcycles pay banded rates based on engine size, ranging from a low double-figure annual rate up to around £117.

Vehicles 40 years old or more can apply for the historic vehicle tax class, which is exempt from VED but still requires an annual nil-rate renewal. The 40-year rule rolls forward each April, bringing more 1980s cars into the exemption window each year.

Practical tips for renewal

Set a calendar reminder a fortnight before VED expires — driving an untaxed vehicle on the road can mean a fixed penalty plus back-tax, even if you're stationary at the kerb. Use SORN if a car will be off-road for an extended period.

If you sell a car, the buyer must re-tax immediately; tax no longer transfers. The seller can reclaim full unused months automatically when the V5C change of keeper is processed. Direct Debit payment options spread the cost monthly with a small surcharge versus annual.

Frequently asked questions