How much is car tax?
For most cars registered since April 2017, vehicle tax is a flat standard rate after the first year: £200 a year from 1 April 2026. Cars with a list price above £40,000 (£50,000 for electric cars) pay an extra £440 a year for five years. Older cars are taxed on their CO2 emissions or engine size.
Updated 14 October 2026
Cars registered from 1 April 2017
The first year’s tax is based on CO2 emissions and is included in the on-the-road price of a new car. It ranges from £10 for zero-emission cars to several thousand pounds for the highest emitters.
From the second year, almost all cars pay the standard rate: £200 a year from 1 April 2026 (it was £195 in 2025/26). Petrol, diesel, hybrid and electric cars all pay the same standard rate.
The expensive car supplement
If a car’s list price when new was over £40,000, it pays an additional £440 a year on top of the standard rate, from the second to the sixth year of its life, so £640 a year in total for 2026/27.
The list price is the price including options when new, not what you paid for it, and not its value today. A used car that cost £42,000 new pays the supplement even if you bought it for £20,000.
For electric cars the threshold rose to £50,000 from April 2026. Electric cars registered before 1 April 2025 are permanently exempt from the supplement.
Cars registered March 2001 to March 2017
These are taxed in bands based on their official CO2 emissions, from nothing for the cleanest to several hundred pounds a year for the highest-emitting cars. The band stays with the car for life.
Cars registered before March 2001 are taxed by engine size: one rate for engines up to 1549cc and a higher rate above that.
Paying monthly
You can pay annually, every six months, or monthly by Direct Debit. Paying monthly or six-monthly costs 5 per cent more than paying for the year in one go.
Tax does not transfer when a car is sold, so a buyer must tax it before driving it away. Odomint shows when your car’s tax runs out and reminds you before it does.
Exemptions and reductions
Some vehicles are exempt from paying vehicle tax, though they must still be taxed at a nil rate each year. These include vehicles used by people who receive certain disability benefits, such as the higher rate mobility component of Disability Living Allowance or the enhanced rate mobility component of Personal Independence Payment.
Vehicles of historic interest, generally those built more than 40 years ago, are also usually exempt. A 50 per cent reduction is available for some disability benefits too. The exemption is claimed when you tax the vehicle, with evidence of entitlement.
Common questions
What is the standard rate of car tax in 2026?
£200 a year from 1 April 2026, for most cars registered since April 2017, after their first year.
Do electric cars pay car tax?
Yes, since April 2025. They pay £10 in the first year and then the standard rate. The expensive car supplement applies to electric cars with a list price over £50,000 from April 2026.
Is it cheaper to pay car tax annually?
Yes. Paying monthly or every six months adds 5 per cent compared with paying for twelve months at once.
Check any car before you buy it
MOT history, every advisory and the full mileage record are free for any UK registration. An Odomint Check adds outstanding finance, insurance write-offs, stolen markers and salvage history, with a £10,000 data guarantee.