Benefits in Kind (BIK) Tax Rates 2026/27

Official 2026/27 Benefits in Kind (BIK) tax guide. Company car tax brackets, electric vehicle 2%–3% rates, private medical insurance, and P11D reporting.

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Company Car Benefit in Kind (BIK) Rates 2026/27

CO2 Emissions (g/km)Electric Range (Miles)2026/27 BIK Rate
0 g/km (Pure Electric EV)All3%
1 to 50 g/km (Plug-in Hybrid)130+ miles3%
1 to 50 g/km (Plug-in Hybrid)70 to 129 miles6%
100 to 104 g/km (Petrol/Diesel)N/A26%
160+ g/km (High Emissions)N/A37% (Maximum)

How BIK Tax is Calculated

The taxable value equals the car's P11D value (list price) × BIK percentage. You pay income tax on this value at your marginal rate (20%, 40%, or 45%), usually collected via your PAYE tax code.

Official Statutory Data Reference

Rates and calculations on this page are cross-referenced with official UK Government legislation: GOV.UK Employer Rates and Thresholds for Benefits in Kind (2026/27).