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UK Vehicle Tax Rates (VED) 2026/27

Official UK Vehicle Excise Duty (VED / Road Tax) rates for 2026/27. Standard rates, CO2 emissions bands, electric vehicle rules, and expensive car supplement.

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The £40,000 List Price Cliff-Edge: The £410/yr expensive car supplement is based on the manufacturer's published list price before discounts plus optional extras. Adding even a minor optional extra that pushes the price to £40,005 costs you an extra £2,050 in tax over 5 years.

What are the UK Vehicle Tax (VED) Standard Rates for 2026/27?

For cars registered on or after 1 April 2017, Vehicle Excise Duty (VED) moves to a fixed flat annual standard rate from the second tax payment onward.

Fuel TypeStandard Annual Rate (Year 2+)Statutory Rules
Petrol & Diesel£195 / yearFlat standard statutory rate from Year 2
Alternative Fuel (Hybrids)£185 / year£10 annual alternative fuel discount
Electric Vehicles (EVs)£195 / yearStandard rate applies post-legislative reform

Step-by-Step Road Tax Calculations (Worked Examples)

Compare the 5-year running tax cost of a £38,000 car against a £42,000 model subject to the expensive car supplement.

Standard Vehicle (£38k List Price)

List price under £40,000 statutory cap.

Original List Price£38,000.00
Standard Annual VED£195.00 / yr
Expensive Car Supplement£0.00
Annual Road Tax Bill£195.00 / yr
5-Year VED Total (Years 2-6)£975.00

Premium Vehicle (£42k List Price)

List price over £40,000 statutory cap.

Original List Price£42,000.00
Standard Annual VED£195.00 / yr
5-Year Expensive Supplement+£410.00 / yr
Annual Road Tax Bill£605.00 / yr
5-Year VED Total (Years 2-6)£3,025.00 (+£2,050)

Frequently Asked Questions About Vehicle Tax

What is the standard UK car tax rate for 2026/27?

For cars registered on or after 1 April 2017, the standard annual Vehicle Excise Duty (VED) rate is £195 per year for petrol, diesel, and electric cars (£185 for hybrids) from Year 2 onwards.

What is the £40,000 Expensive Car Supplement?

Cars with an original list price exceeding £40,000 (including options and VAT) must pay an extra £410 per year supplement for 5 years, starting from year 2, bringing total annual road tax to £605.

Do electric cars pay road tax in the UK?

Yes. Following legislation changes, zero-emission electric vehicles pay the £10 first-year rate and £195 standard annual VED thereafter, plus the £410 expensive car supplement if list price exceeds £40,000.

Official Statutory Data Reference

Rates and calculations on this page are cross-referenced with official UK Government legislation: GOV.UK Vehicle Tax Rate Tables (DVLA) (2026/27).