VED Car Tax Changes 2026: What UK Drivers Need to Know
The UK's Vehicle Excise Duty (VED) system is undergoing significant changes in 2026, with the biggest impact falling on electric vehicle owners. After years of zero-rate VED, EVs are now being brought into the standard tax system. Here's everything you need to know.
Key Changes at a Glance
- Electric vehicles now pay VED — From April 2025, zero-emission vehicles pay the lowest first-year rate, then the standard annual rate (currently £190/year). This continues into 2026.
- Expensive car supplement — EVs with a list price over £40,000 are now subject to the £410/year luxury car supplement for 5 years, just like petrol and diesel vehicles.
- Hybrid rates adjusted — Alternative fuel vehicles (hybrids, plug-in hybrids) no longer receive the £10 annual discount. They pay the same standard rate as petrol cars.
- First-year rates updated — CO2-based first-year rates have been adjusted upward for higher-emission vehicles.
What This Means for EV Owners
If you bought an electric car before April 2025, you were used to paying £0 in road tax. That era is over. All EVs registered from April 2025 onwards pay the standard annual rate. If your EV cost over £40,000 new, you'll also pay the expensive car supplement — adding £410/year for the first five years of ownership.
For a Tesla Model 3 Long Range (list price around £45,000), this means annual VED of approximately £600 for the first five years, then £190/year thereafter. This is a significant change from the zero tax these vehicles previously attracted.
Impact on Used Car Buyers
If you're buying a used car, the VED rate depends on when the vehicle was first registered and its CO2 emissions. You can check any vehicle's current tax status and VED band for free using our car tax check.
Key considerations for used car buyers in 2026:
- Vehicles registered before 1 April 2017 pay VED based on CO2 emissions bands
- Vehicles registered after 1 April 2017 pay the flat standard rate (£190/year) after the first year
- The expensive car supplement applies to vehicles with a list price over £40,000 for the first 5 years
- Historic vehicles (manufactured before 1 January 1977) remain exempt from VED
How to Check Your Vehicle's Tax Status
You can check any UK vehicle's current tax status, MOT status, and CO2 emissions band for free by entering the registration number below. This will show you exactly how much VED the vehicle currently pays and when it's due for renewal.