New car tax bands coming in 2026 for all electric car owners – Daily Express
Specialists at Pete Barden have predicted VED fees are likely to rise by around 4.6% next year, with standard rate fees, first-year charges and Expensive Car Supplement fees all set to rise. The move could see electric car owners paying up to £20 more to use the road in a blow to those making the switch.
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“While the Government typically bases VED rises on the Retail Prices Index (RPI) rather than CPI, the two measures tend to move in similar directions – and RPI is still expected to hover around 4.6% for September, according to forecasts from analysts.
“That means drivers should brace for another inflation-linked rise in road tax from April 2026, with costs for new and existing vehicles likely to climb by a similar percentage – around 4.6%.”
Electric cars used to be completely exempt from VED fees but this changed in April 2025 when motorists were hit with charges for the first time. According to Pete Barden, the current standard VED rate of £195 is likely to rise by around £9 in 2026 with annual fees predicted to sit at £204 per year.
Brand new electric car owners are offered some discounts, with owners currently paying just £10 in year one. The Expensive Car Supplement, an extra fee issued to owners of cars priced at over £40,000, are also set to increase.
The hefty list price of many electric vehicles means many EV owners pay the additional £425 per year rate. However, experts predict this to increase to £445 from 2026, meaning road users will have to cough up £20 more.
The £204 standard VED rate on top of the Expensive Car Supplement means many EV owners face charges of around £449 from April 2026.
Pete Barden added: “While 4–5% may not sound huge, it adds up – especially alongside other motoring costs like fuel, insurance, and servicing that have all been rising faster than wages.”
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