Car tax (VED) explained for 2026/27
How UK car tax works in 2026/27: the three systems set by first registration date, the rates from 1 April 2026, electric cars and what a used buyer pays.
Updated
Car tax, properly called Vehicle Excise Duty (VED), depends first on one date: when the car was first registered. That date puts every car into one of three systems, and each system works out the tax in a different way. For a used car in the 2026/27 tax year, the short version is this: a car first registered before 1 March 2001 pays by engine size, a car from 1 March 2001 to 31 March 2017 pays by its CO2 band, and a car from 1 April 2017 pays a flat standard rate of £200 a year, plus a supplement if it was expensive when new.
The rates below are the ones that apply from 1 April 2026, taken from the GOV.UK rate tables. New rates normally apply from 1 April each year, so check GOV.UK if you read this after March 2027.
Find the first registration date first
Look at the V5C log book. It shows the date of first registration, the fuel type, the engine size and, for most cars from 2001, the CO2 figure in g/km. Those four details are all you need to work out the tax. You can put them into our car tax check to see the yearly cost for a used car, or use the car tax calculator to work out the rate from the registration date, fuel and CO2.
With an imported car, go by the date of first registration and the tax class shown on the V5C, not the build year or the advert.
Cars first registered before 1 March 2001
These cars pay by engine size, in two bands. The rates for 2026/27:
| Engine size | 12 months | 6 months | 12 monthly Direct Debit payments (total) |
|---|---|---|---|
| Not over 1549cc | £230 | £126.50 | £241.50 |
| Over 1549cc | £375 | £206.25 | £393.75 |
A car built before 1 January 1986 can be taxed at zero from 1 April 2026 if you apply to move it into the historic tax class. You still have to tax it every year, you just pay nothing. See our guide to historic vehicle tax.
Cars first registered from 1 March 2001 to 31 March 2017
These cars pay by CO2 emissions, in thirteen bands from A to M. The band is set by the CO2 figure on the V5C and does not change as the car ages. The rate for each band is normally updated each April.
For 2026/27, a 12 month payment runs from £20 in bands A and B (up to 110g/km) to £790 in band M (over 255g/km). A car in band E (131 to 140g/km) pays £200, the same as the standard rate for newer cars. Petrol, diesel, alternative fuel and zero emission cars all use the same table in this group.
The full table is in our guide to car tax bands by CO2.
Cars first registered from 1 April 2017
Newer cars work in two stages.
- The first tax payment. When the car is registered for the first time, the first year's tax depends on CO2 and fuel. For 2026/27 it runs from £10 for a zero emission car to £5,690 for a car over 255g/km. Diesel cars that do not meet the RDE2 standard pay a higher first-year rate. The first keeper pays this, usually as part of the price of a new car.
- The standard rate after that. From the second tax payment, every car in this group pays the same standard rate, whatever its emissions. For 2026/27 that is £200 for 12 months, £110 for 6 months, or £210 in total if you pay in 12 monthly Direct Debit instalments.
If you buy a used car registered from 1 April 2017, the first-year rate is already behind it. You pay the standard rate.
The expensive car supplement
A car in this group with a list price when new of more than £40,000 pays an extra £440 a year in 2026/27, for 5 years from the second time it is taxed. For an electric car registered from 1 April 2025 the threshold is £50,000. With the supplement, the 12 month payment is £640.
The list price is the published price before first registration, before discounts. It is not what the car costs used. A five-year-old car can still carry the supplement. See the expensive car supplement for how to check.
Electric cars
Electric cars were exempt until 31 March 2025. From 1 April 2025 they pay vehicle tax like other cars. Among electric vehicles, only heavy goods vehicles over 3,500kg stay exempt. Which rate an electric car pays depends on its first registration date, in the same three groups as above. Our guide to electric car tax sets out the 2026/27 amounts.
Hybrids are not exempt. They pay the same rates as petrol and diesel cars in each group.
How to pay and what happens when you sell
You can tax a car online, by phone or at a Post Office that deals with vehicle tax, using a reference number from the V5C, the green new keeper slip or a reminder letter. You can pay for 12 months or 6 months, or by Direct Debit monthly, every 6 months or yearly. Paying monthly or every 6 months costs 5% more than paying yearly. Our guide to paying car tax by Direct Debit has the detail.
Tax does not move with the car. When a car is sold, the seller's tax is cancelled and the buyer must tax it before driving away. See does car tax transfer and car tax refunds.
You must tax a car even when it costs nothing, for example in the historic class. If you keep a car off the road, make a SORN instead. Our SORN check guide explains what that means.
What this means for a used buyer
- Ask for the V5C before you agree a price and note the first registration date, CO2 figure and engine size.
- A car registered from March 2001 to March 2017 with low CO2 can cost much less to tax than a newer car, because the newer car pays £200 whatever it emits.
- On a car registered from April 2017, ask whether its list price when new was over the threshold. If it was, budget £640 a year until the supplement ends.
- Budget for the tax from the day you buy. It does not come with the car.
Frequently asked questions
How much is car tax in 2026/27?
It depends on the first registration date. Cars from 1 April 2017 pay a standard rate of £200 a year after the first year, or £640 with the expensive car supplement. Cars from 1 March 2001 to 31 March 2017 pay between £20 and £790 depending on CO2. Older cars pay £230 or £375 depending on engine size.
When do car tax rates change?
New rates normally take effect on 1 April, at the start of the tax year. The rates on this page apply from 1 April 2026.
Do electric cars pay car tax?
Yes. Since 1 April 2025 electric cars pay vehicle tax. Most pay the £200 standard rate in 2026/27. Those first registered from 1 March 2001 to 31 March 2017 pay the band A rate of £20, and one registered from 1 April 2025 with a list price over £50,000 pays £640.
Where do I find a car's CO2 figure?
On the V5C log book. Cars registered from 1 March 2001 normally show it in g/km.
Do I have to tax a car that pays nothing?
Yes. A car in a zero rate class, such as the historic class, must still be taxed every year. A car kept off the road needs a SORN instead.