The expensive car supplement: who pays the extra tax
Cars registered from 1 April 2017 with a list price over £40,000, or £50,000 for newer electric cars, pay £440 a year extra in 2026/27 for 5 years.
Updated
The expensive car supplement is an extra charge on top of the standard rate of car tax. It applies to cars first registered from 1 April 2017 whose list price when new was more than £40,000, or more than £50,000 for an electric car registered from 1 April 2025. In the 2026/27 tax year it adds £440 a year, so the 12 month tax bill becomes £640 instead of £200. It lasts for 5 years.
The trap for used buyers is simple. The supplement is based on the price when the car was new, not on what you pay for it now. A used car with a modest asking price can still carry it.
Who pays it
You pay the supplement if all of these apply:
- the car was first registered on or after 1 April 2017
- its list price at first registration was over the threshold
- it is within the 5 years the supplement runs
The thresholds, from GOV.UK:
| Car | List price threshold |
|---|---|
| Petrol, diesel, hybrid or alternative fuel, registered from 1 April 2017 | more than £40,000 |
| Electric (zero emission), registered from 1 April 2025 | more than £50,000 |
| Electric (zero emission), registered before 1 April 2025 | does not pay the supplement |
Cars first registered before 1 April 2017 never pay it. They are taxed under the older systems by CO2 band or engine size.
How much it costs in 2026/27
The supplement is £440 a year for 2026/27. It is added to the standard rate, so the totals are:
| How you pay | Standard rate | With the supplement |
|---|---|---|
| Single 12 month payment | £200 | £640 |
| 12 monthly Direct Debit payments (total) | £210 | £672 |
| Single 6 month payment | £110 | £352 |
| 6 month Direct Debit payment | £105 | £336 |
These are the rates from 1 April 2026. They change every 1 April, so check the GOV.UK table if you read this later.
When it starts and when it stops
The supplement does not apply to the first tax payment, which the first keeper pays when the car is registered. It starts from the second time the car is taxed and runs for 5 years. In practice that is from roughly the car's first birthday to its sixth, so it covers years 2 to 6.
After that, the car drops back to the standard rate.
For a buyer, that makes the age of the car important. A car near the end of its sixth year will only pay the supplement for a few more months. A two-year-old car has most of the five years still to go.
What counts as the list price
GOV.UK defines the list price as the published price of the vehicle before it is registered for the first time, before any discounts. It is not:
- the price the first owner actually paid after a discount
- the price you pay for the car used
- the car's current value
The list price is not printed on the V5C. GOV.UK suggests checking the list price with the dealer. For a used car, ask the seller or the selling dealer whether the car was over the threshold when new, and ask them to show you the tax rate on the latest renewal reminder or receipt. A renewal amount of £640 for 12 months in 2026/27 tells you the supplement applies.
Why it matters on a used car
The supplement can add £2,200 over the full five years at the 2026/27 rate. That is real money on a car you may be buying for well under its original price. Ask about it before you agree a price, not after.
It can also make two similar cars cost very different amounts to run. A higher trim may have pushed one car over £40,000 when new, while the entry version stayed under. Ask about the exact car, not the model in general.
Electric cars registered from 1 April 2025 use the higher £50,000 threshold, so check which threshold applies. Our guide to electric car tax covers the electric rules in more detail.
Checking the figure
Work out the tax with our car tax calculator, or put the V5C details into the car tax check and answer the list price question. If you are not sure whether the car was over the threshold, budget for the supplement until you know.
Remember that tax does not come with the car. You pay from the day you tax it in your name, at whichever rate applies then. See does car tax transfer.
Frequently asked questions
How much is the expensive car supplement in 2026/27?
£440 a year, on top of the £200 standard rate, making £640 for a single 12 month payment.
Does the supplement apply to used cars?
Yes, if the car was registered from 1 April 2017, its list price when new was over the threshold, and it is still within the 5 years. What you pay for the car used does not matter.
How long do you pay the expensive car supplement?
For 5 years, starting from the second time the car is taxed. That is roughly from the car's first anniversary to its sixth.
Do electric cars pay the expensive car supplement?
Electric cars registered from 1 April 2025 pay it if their list price was over £50,000. Electric cars registered before 1 April 2025 do not pay it.
Where can I find a car's list price?
It is not on the V5C. Ask the seller or dealer, and check the amount on the latest tax renewal. A 12 month renewal of £640 in 2026/27 means the supplement applies.