State pensioners aged over 70 have been hit with fresh car tax charges in 2026, with bills rising across the board. Vehicle Excise Duty (VED) car tax is typically calculated based on the age of the vehicle and its emissions, with the driver's age playing no part in the calculation.
Unlike certain other fees, older road users receive no exemption from paying VED road tax based on their age alone. This means that over-70s are charged exactly the same as everybody else.
As a result, state pensioners have been landed with significant tax hikes in 2026, with bills climbing since April.
Petrol and Diesel Car Tax Increases
Petrol and diesel cars registered after 2017 saw the standard VED rate rise from £195 to £200 per year. Brand new combustion engine cars in their first year on the road were dealt a serious blow, with some costs jumping by as much as £200 to reach £5,690 per year. This follows just a year after first-year tax fees were dramatically doubled, with prices leaping from £2,745 to £5,490 for the 2025/26 tax year.
Emissions-Based Charges for Older Vehicles
Vehicles registered between 2001 and 2017 are charged based on emissions. The most polluting cars emitting over 255g/km of CO2 now face bills of up to £790 to use public roads. Prices also crept up for cars registered before 2001, with modern classics paying up to £15 more to drive since the new tax year began.
Electric Vehicle Owners Affected
Electric vehicle owners were not spared either, with EVs now subject to the £200 standard charge. However, Expensive Car Supplement thresholds were raised to £50,000, up from £40,000. Vehicles with a list price exceeding £50,000 will now pay £440 on top of their existing tax fees, rather than the previous £425 per year.
Exemptions for Classic Cars
Only cars registered more than 40 years ago are exempt from paying VED fees, thanks to historic tax exemption rules. This means vehicles built before 1986 are not required to pay to use public roads — a significant win for classic car enthusiasts.
