UK VED Rates Increase from April 1, 2026

New Vehicle Excise Duty rates took effect across the United Kingdom on April 1, 2026, increasing annual car tax costs for millions of drivers of petrol, diesel, hybrid, and electric vehicles. The changes, aligned with Retail Prices Index inflation, raise the standard rate to £200 from £195 for most cars registered after April 2017, while first-year taxes for high-emission new models can reach £5,690, adding pressure to household budgets amid rising fuel and insurance expenses.

Chancellor Rachel Reeves introduced the adjustments in the previous year's Autumn Budget to promote a shift toward electric vehicles by widening tax differentials based on carbon dioxide emissions. For new cars registered from April 1, 2026, first-year Vehicle Excise Duty, or showroom tax, varies by emissions levels. Vehicles emitting zero to 50 grams of CO2 per kilometer pay £10 to £115, with minimal increases of £5. Mid-range emitters, from 51 to 150 g/km, face rates of £135 to £560, up by £5 to £20. Higher polluters see steeper rises: £910 to £1,410 for 151 to 190 g/km, an increase of £15 to £50; £2,280 to £3,540 for 191 to 225 g/km, up £10 to £120; and £5,020 for 226 to 255 g/km, rising £170. Models...