Car Tax Bands Explained: 2026/27 VED Rates for Every UK Car

Car tax (officially Vehicle Excise Duty, or VED) is set by HM Treasury and collected by the DVLA. The confusing part is that three completely different band systems run side by side, keyed to when the car was first registered. That's why a 2016 hatchback and a 2018 hatchback of the same size can pay very different amounts. This guide walks through all three systems with the exact 2026/27 rates.

Which band system applies to your car

It all comes down to the first-registration date on the V5C:

• On or after 1 April 2017, the most common bracket today: a CO2-based first-year rate, then a flat standard rate (plus the Expensive Car Supplement where the list price triggers it).
• 1 March 2001 to 31 March 2017: the graduated CO2 letter system, bands A to M.
• Before 1 March 2001: a simple two-band table based on engine size.

Cars more than 40 years old can additionally be declared exempt as historic vehicles. Not sure which bracket a car falls into? Run our free car tax check; it reads the first-registration date from the DVLA record and works out the right system for you.

Post-2017 cars: the standard rate

Almost every car first registered after April 2017 pays a single flat rate from year two onwards, regardless of fuel:

The 2025/26 rate was £195; the uplift to £200 is the usual inflation-linked rise applied each April.

The Expensive Car Supplement

On top of the standard rate, a £440 per year supplement applies in years two to six of a car's life when its list price was above the threshold. That's the manufacturer's official price when new, not what anyone actually paid:

• Petrol, diesel and hybrid: above £40,000
• Electric cars first registered from 1 April 2026: above £50,000
• Years applied: two to six only; from year seven the car returns to the standard rate alone

A car optioned just past the threshold can cost an extra £2,200 in tax across those five years, so the official list price is always worth checking before you negotiate on a nearly-new car. We cover the traps in detail in our Expensive Car Supplement guide.

First-year (showroom) rates

In year one, post-2017 cars pay a CO2-based rate, normally rolled into the dealer's on-the-road price. The 2026/27 table:

The CO2 figure that decides the band is on the car's DVLA record. Our free car spec check shows it for any registration.

2001–2017 cars: the CO2 letter bands

Cars first registered between 1 March 2001 and 31 March 2017 sit in a graduated system from band A to band M, fixed for the life of the vehicle and uplifted modestly each April:

• Band A (up to 100 g/km): very low, historically zero
• Bands B–D (101–140 g/km): low rates
• Bands E–H (141–200 g/km): mid-tier
• Bands I–M (201+ g/km): climbing into several hundred pounds a year

One 2025 change worth knowing: the cars in this system that used to pay nothing now pay a minimum of £20 a year: the free ride under 100 g/km ended at the same time as the EV exemption. Exact pence figures move each April, so check the current rate for a specific car with our car tax calculator.

Pre-2001 cars: the engine-size system

Before CO2 ratings existed in the tax system, VED was based on engine displacement alone. Two bands apply:

• Engines up to 1,549 cc: lower flat rate
• Engines over 1,549 cc: higher flat rate

Both are uplifted modestly each year. Cars in this bracket are also the most likely to qualify for the historic exemption below.

The 40-year historic exemption

Once a vehicle is more than 40 years old, and hasn't been substantially changed in the last 30 years, the keeper can declare it exempt from VED by signing the V112 form when taxing. The rule is rolling: 1986-registered cars become eligible in 2026, 1987 cars in 2027, and so on.

The same threshold usually brings MOT exemption too, though the keeper stays legally responsible for roadworthiness. Our guide to the 40-year MOT exemption explains how the two exemptions fit together.

Electric cars after April 2025

The end of the EV exemption is the biggest recent change, and it catches buyers out in three ways:

1. EVs first registered between April 2017 and March 2025 now pay the £200 standard rate. There was no grandfathering.
2. EVs first registered from 1 April 2025 pay £10 in year one, then £200.
3. EVs first registered from 1 April 2026 with a list price over £50,000 also pay the Expensive Car Supplement: £640 a year in years two to six.

Hybrids changed too: the £10 alternative-fuel discount disappeared in April 2025, so a post-2017 hybrid pays exactly what a petrol pays. The full detail is in our electric car tax guide.

Paying, and what happens if you don't

The DVLA accepts three payment schedules: annually (cheapest), six-monthly, or monthly Direct Debit; the split options carry a surcharge of roughly 5%. Direct Debits renew automatically each year as long as the MOT is valid.

Drive untaxed and ANPR cameras plus the DVLA's monthly database sweeps will find the car quickly. It starts with an automated £80 fine (halved if paid in 28 days) and can escalate to a court fine of up to £1,000 or five times the annual tax, plus clamping. If you're genuinely not using the car, declare a SORN instead and the unused tax comes back automatically. Our free SORN status check shows whether any car is currently declared off the road.

The bottom line

For most owners in 2026/27, car tax is £200 a year, plus £440 in years two to six if the car listed above £40,000 (or £50,000 for a new EV). Older cars follow the CO2 letter table or the engine-size table, and the rolling 40-year exemption is now the only route to paying nothing. To see the exact figure for a specific car rather than the theory, run the registration through our free car tax calculator. It reads the DVLA record and does the working out for you.