Buying a new car in 2026 can come with a tax surprise, particularly if you are moving to an electric vehicle for the first time. Vehicle Excise Duty (VED), commonly called car tax, now applies to EVs as well as petrol, diesel and hybrid cars. From 1 April 2026, the standard annual rate increased again, first-year charges were uprated, and the expensive-car threshold became more generous for zero-emission models.
How new car tax works in the UK in 2026
For most new cars first registered on or after 1 April 2017, VED has two stages. The first licence uses a first-year car tax rate linked to the vehicle’s CO2 emissions. From the second licence, the car normally moves to the standard annual rate.
For the 2026/27 tax year, running from 1 April 2026 to 31 March 2027, the standard rate is £200. That standard rate applies to petrol, diesel, electric and alternative-fuel cars in the post-2017 system once they move beyond the first year, although an additional expensive-car charge can apply to qualifying vehicles.
First-year VED rates for new cars in 2026
The VED rates 2026 rise sharply as official CO2 emissions increase. A zero-emission car pays £10 in its first year. Cars emitting 1-50g/km pay £115, while the 51-75g/km band costs £135. The rate is £280 for 76-90g/km, £365 for 91-100g/km, £405 for 101-110g/km and £455 for 111-130g/km.
Higher-emission cars become much more expensive to tax at registration. The first-year rate is £560 at 131-150g/km, £1,410 at 151-170g/km, £2,270 at 171-190g/km, £3,420 at 191-225g/km, £4,850 at 226-255g/km and £5,690 above 255g/km.
Diesel buyers should check the emissions standard
New diesel cars that do not meet the Real Driving Emissions 2, or RDE2, standard can be charged as if they were in the next VED band for the first year. If you are comparing two diesel versions of the same model, ask for the exact first-year VED figure rather than assuming their tax will be identical.
Electric car tax in the UK is no longer zero
The biggest mindset change for many buyers is that the general VED exemption for electric vehicles ended in April 2025. A new zero-emission car registered from 1 April 2026 pays £10 for its first vehicle licence and then moves to the £200 standard rate from the second licence.
That makes the first-year figure slightly misleading if you plan to keep the car. An EV may cost only £10 to tax when new, but the following year’s bill is based on the standard rate. Buyers comparing petrol and electric models should therefore look at several years of ownership costs rather than the first payment alone.
The expensive car supplement matters more than many buyers realise
The Expensive Car Supplement is added to the standard rate for five years, starting with the second vehicle licence. For petrol, diesel and other non-zero-emission cars, it applies when the relevant list price is more than £40,000. From 1 April 2026, the threshold for qualifying zero-emission cars is more than £50,000.
The 2026/27 supplement is £440 a year. When it applies alongside the £200 standard rate, the annual VED bill is £640. The key detail is that the threshold is based on the vehicle’s published list price before first registration, not simply the discounted price you negotiate with a dealer.
A practical 2026 EV example
Suppose you are choosing between two new zero-emission cars. One has a list price of £49,500 and the other is £51,500. Both pay £10 first-year VED because both have zero tailpipe emissions. From the second licence, both move to the £200 standard rate, but the £51,500 car can also attract the £440 Expensive Car Supplement for five years.
At current 2026/27 rates, that creates a £440 difference in the relevant annual tax bill: £200 for the lower-priced EV versus £640 for the more expensive one. A modest-looking price jump at purchase can therefore create a noticeably larger ownership-cost gap.
What to check before ordering a new car
Ask the dealer to confirm the exact CO2 emissions, fuel type, first-year VED and list price for the specific derivative you are buying. Do not rely on a generic model page if several engines, batteries or trim levels are available.
Calculate the tax over your expected ownership period, alongside wider new car running costs, insurance and finance or depreciation. If you are still choosing a powertrain, comparing petrol, hybrid and electric cars can expose differences hidden by a monthly payment.
What changes after 2026?
Another tax change is scheduled from 1 April 2028. The government has published plans for Electric Vehicle Excise Duty, a mileage-based charge that will sit alongside existing VED. The announced starting rates are 3p per mile for battery-electric and hydrogen fuel-cell cars and 1.5p per mile for plug-in hybrids, with future uprating planned.
This does not alter what a new EV owner pays in 2026, but it is relevant if you expect to keep the car into 2028 and beyond. Long-term buyers should avoid assuming today’s tax structure will remain unchanged for the whole ownership period.
Frequently asked questions
How much is car tax for a new electric car in 2026?
A zero-emission car first registered from 1 April 2026 pays £10 for the first year. From the second licence, the 2026/27 standard rate is £200. An additional £440 Expensive Car Supplement can apply to qualifying zero-emission cars with a list price above £50,000.
What is the standard VED rate in 2026?
The standard 12-month VED rate for cars in the post-April-2017 system is £200 for 2026/27. It normally applies from the second vehicle licence onwards.
Does a dealer discount reduce the expensive-car threshold?
No. The tax test uses the relevant list price before first registration rather than simply the discounted transaction price. If the car is close to the threshold, check the official list price and any qualifying options with the dealer.
Do electric cars pay a per-mile tax in 2026?
No. The new mileage-based Electric Vehicle Excise Duty is scheduled to start on 1 April 2028. In 2026, EVs are already subject to normal VED rules, including first-year tax, the standard rate and, where applicable, the Expensive Car Supplement.
Budget for VED before you buy
New car tax in the UK is no longer a minor detail to check after choosing the vehicle. In 2026, the first-year rate can range from £10 for a zero-emission car to thousands of pounds for a high-emission model, while the £200 standard rate and expensive-car supplement shape later ownership costs. For EV buyers especially, the old assumption of zero road tax is out of date. Confirm the exact figures before ordering, then compare the tax over the years you expect to keep the car.