Road Tax (VED) Changes 2026: What You Actually Pay Now

Road tax, properly called Vehicle Excise Duty (VED), went through its biggest change in years in April 2025. The headline change was the end of the exemption for electric cars, but the reforms touched everyone. If you bought a car recently, or are about to, it is worth understanding exactly what you pay in 2026 and why.

This guide breaks down the standard rate, the first-year rates, the expensive car supplement, and how the rules differ by registration date.

The standard rate: £200 a year for most cars

For the vast majority of cars registered from April 2017 onward, once you are past the first year you pay the standard rate of Vehicle Excise Duty. In 2026 that standard rate is £200 a year.

This applies regardless of fuel type for cars in the current system. A petrol car, a diesel car and, since April 2025, an electric car all pay the same £200 standard rate from year two onward. The differences between fuel types now show up mainly in the first year and in the supplement, not in the standard rate.

The first-year rate: where fuel type still matters

The first year of a car's life is taxed separately, and this is where the gap between fuel types is widest.

• Petrol and diesel cars pay a first-year rate based on official CO2 emissions. The cleaner the car, the lower the charge; the dirtiest cars pay a high first-year rate that can reach into four figures. This is sometimes called the showroom tax because it is usually rolled into the on-the-road price.
• Electric cars pay a flat, low first-year rate of around £10.

After the first year, almost every car drops to the £200 standard rate. So the first-year rate is a one-off that depends heavily on emissions, while the ongoing cost converges on £200 for nearly everyone.

The end of the electric car exemption

Until April 2025, electric cars paid no VED at all. That exemption has ended. From April 2025:

• A new EV pays a first-year rate of around £10.
• From year two, an EV pays the £200 standard rate.
• Older EVs that were previously exempt have also been brought into the standard rate.

The change means electric cars are now treated much more like petrol and diesel cars for road tax, with only a small first-year advantage remaining. EVs still benefit elsewhere (lower fuel and company car tax), but the road tax gap has largely closed.

The expensive car supplement

On top of the standard rate, there is an additional charge for pricier cars: the expensive car supplement. It is £440 a year, charged for years two to six of the car's life, so it runs for five years after the first year.

The supplement applies to cars whose list price when new is above a threshold:

Two points matter here. First, the threshold is the list price, not what you paid after any discount or negotiation. A car listed at £41,000 that you bought for £38,000 still counts as over the threshold. Second, electric cars get a higher threshold of £50,000, giving them more headroom before the supplement applies. This is one of the few road tax advantages EVs retain after the April 2025 changes.

For an affected car, the supplement adds up: £440 a year for five years is £2,200 on top of the standard rate over that period.

Worked examples for 2026

A few illustrative cases, all for cars in the current (post-April 2017) system:

• A modest petrol hatchback listed under £40,000: a CO2-based first-year rate, then £200 a year. No supplement.
• A high-emission petrol SUV listed over £40,000: a high first-year rate based on CO2, then £200 plus the £440 supplement for years two to six, so £640 a year during the supplement period.
• A new EV listed at £45,000: around £10 first year, then £200 a year. No supplement, because it is under the £50,000 EV threshold.
• A new EV listed at £55,000: around £10 first year, then £200 plus the £440 supplement for years two to six, so £640 a year during the supplement period.

These show how the first-year rate and the supplement, rather than the standard rate, drive most of the variation between cars.

How registration date changes the rules

The system you are in depends on when the car was first registered:

• Registered from April 2017 onward: the current system described above, with a first-year rate, the £200 standard rate, and the supplement where applicable.
• Registered March 2001 to April 2017: taxed by CO2 emission bands, so the annual cost varies with emissions rather than sitting at a flat £200.
• Registered before March 2001: taxed by engine size, with a simple split based on engine capacity.

The April 2025 reforms, including ending the EV exemption, operate within these systems. If you drive an older car, your annual figure may differ from the £200 standard rate because you are in an older banding.

What this means for buyers in 2026

A few practical takeaways:

1. For most drivers the ongoing cost is £200 a year, whatever the fuel type. Do not expect electric cars to be road-tax-free any more.
2. Watch the list price against the supplement thresholds. Crossing £40,000 (petrol or diesel) or £50,000 (electric) adds £440 a year for five years.
3. The first-year rate is a one-off but can be large for high-emission cars, so factor it into the purchase price.
4. EVs keep a small edge: a low first-year rate and a higher supplement threshold.

The bottom line

The April 2025 VED changes brought electric cars into the road tax net and standardised the ongoing rate at £200 a year for most cars. The real variation now comes from the CO2-based first-year rate and the £440 expensive car supplement, which kicks in above £40,000 for petrol and diesel and above £50,000 for electric cars. Check the list price and the registration date, and you will know exactly what you owe.

To work out the road tax on a specific car, use the road tax calculator.