Car tax changes launching in weeks will see drivers pay £5,690 as Labour confirms new price hikes

Felix Reeves

By Felix Reeves


Published: 11/03/2026

- 13:55

The new car tax rates will apply from April 1, 2026

Drivers could be slapped with huge car tax charges in the coming weeks as the Government confirms new rates launching in the new financial year.

Chancellor Rachel Reeves announced a host of new car tax measures in the recent Autumn Budget, including the controversial move to launch pay-per-mile rates for electric cars, launching in 2028.


Labour will also oversee the uprating of Vehicle Excise Duty rates for cars, vans and motorcycles in line with the Retail Price Index (RPI) from April 1, 2026.

This will apply to the standard rate of VED, as well as first year taxes, from the start of the new financial year, which will see many drivers pay more.

It has also confirmed an inflation-linked increase in costs for VED for heavy goods vehicles, in addition to the HGV levy.

The new first year tax rates could see drivers slapped with an enormous cost of more than £5,000 after the Chancellor introduced new rules in 2024 to "widen the differential" between petrol, diesel and electric vehicles.

The most-polluting cars will pay thousands of pounds for the vehicle's first year of registration, while new zero emission models will see owners pay just £10.

GB News has rounded up the new first year Vehicle Excise Duty tax rates launching within weeks.

Vehicle tax reminder

New first year tax rates have been confirmed by the Government ahead of hikes at the start of April

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GETTY

Confirmed first year car tax rates from April 1, 2026

0g/km - Remains at £10

1-50g/km - Rising from £110 to £115

51-75g/km - Rising from £130 to £135

65-90g/km - Rising from £270 to £280

91-100g/km - Rising from £350 to £365

101-110g/km - Rising from £390 to £405

Ford Puma Gen-E

Electric vehicles, like the Ford Puma Gen-E, will avoid the Expensive Car Supplement as they cost less than £50,000

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FORD

111-130g/km - Rising from £440 to £455

131-150g/km - Rising from £540 to £560

151-170g/km - Rising from £1,360 to £1,410

171-190g/km - Rising from £2,190 to £2,270

191-225g/km - Rising from £3,300 to £3,420

226-255g/km - Rising from £4,680 to £4,850

Over 255g/km - Rising from £5,490 to £5,690

Car dealershipThe Expensive Car Supplement applies to vehicles with a list price of more than £40,000, or £50,000 for zero emission vehicles | PA

From the second licence onwards, the standard rate of vehicle tax will apply, which is being raised from £195 to £200.

Motorists who buy vehicles with a list price of more than £40,000 will also have to pay the Expensive Car Supplement, which costs £440 from April 2026.

This only applies to petrol and diesel models, as those who buy new electric cars will avoid the charge if the EV costs less than £50,000, which was confirmed by the Chancellor in November.

The Expensive Car Supplement additional rate needs to be paid by drivers from the second registration, and will remain active for five years.