Millions of Motorists Face Steep Car Tax Increases from April 2026
Millions of drivers across the United Kingdom are preparing for significant increases in their car tax bills, with changes set to take effect in just a few weeks. Vehicle Excise Duty (VED) charges will rise from April 1, 2026, as part of the annual inflation-linked adjustment, impacting nearly every petrol, diesel, and electric vehicle owner.
Pre-2017 Vehicles Hit Hardest by New Tax Bands
The most substantial changes will affect cars registered between 2001 and 2017, which will face a tiered VED system based on their emissions output. These vehicles are categorized into one of thirteen tax brackets, with annual costs increasing by between £5 and £30 this spring. Meanwhile, vehicles registered after 2017 will see both standard and first-year VED rates go up, and cars built before 2001 will also experience steeper bills.
Her Majesty's Revenue and Customs (HMRC) has confirmed that the 2026 increases are routine adjustments, lifting charges in line with the Retail Price Index (RPI) inflation. Since VED is mandatory by law, drivers have no choice but to pay the annual fees to keep their vehicles legally on the road.
Emissions-Based Increases Detailed
The dirtiest gas-guzzlers, those emitting over 255g/km of CO2 and falling into Band M, will face the steepest hit. Their annual bills will climb from £760 to £790. Drivers in Band L, with vehicles churning out between 226 and 255g/km of CO2, are next in line for pain, facing a £25 annual increase from £735 to £760.
Motorists in Bands I, J, and K will see £15 added to their bills from April, whilst those in bands F, G, and H face a £10 bump. Prices will increase by £5 for vehicles in Bands D and E, which are models that emit between 121 to 130g/km and 131 to 140g/km of CO2. However, clean vehicles that emit less than 120g/km of CO2 will not be subject to any price increases, with annual Vehicle Excise Duty rates remaining the same as in 2025.
Complete VED Bands and Costs for 2026
- Band A - Up to 100g/km CO2 - £20
- Band B - 101 to 110g/km CO2 - £20
- Band C - 111 to 120g/km CO2 - £35
- Band D - 121 to 130g/km CO2 - £170
- Band E - 131 to 140g/km CO2 - £200
- Band F - 141 to 150g/km CO2 - £225
- Band G - 151 to 165g/km CO2 - £275
- Band H - 166 to 175g/km CO2 - £325
- Band I - 176 to 185g/km CO2 - £360
- Band J - 186 to 200g/km CO2 - £410
- Band K - 201 to 225g/km CO2 - £445
- Band L - 226 to 255g/km CO2 - £760
- Band M - Over 255g/km CO2 - £790
This structured approach ensures that higher-emission vehicles contribute more, aligning with environmental goals while adjusting for economic factors through inflation-linked rises.
