New car tax bands 2026 for certain petrol and diesel vehicles revealed – Daily Express

Prices tend to rise annually in line with the Retail Price Index (RPI) inflation, with new increases scheduled to take effect on April 1, 2026. VED fees are calculated on a sliding scale, with prices in 2026 ranging from £20 to £790 depending on vehicle emissions totals. The highest Band M, for vehicles emitting over 255g/km of CO2 emissions, faces the highest rises, with costs up £30 from the current 2025/26 levels.
READ MORE: All disabled drivers in UK affected by Budget VED decision with new 2025 rule
READ MORE: Hybrid car drivers face DOUBLE tax in Rachel Reeves’ new cash grab
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The analysis from Pete Barden shows Band C and D owners will pay just £5 more in VED charges from April 2026. However, motorists in Bands A and B will pay the same £20 annual rate from next year, with no rises planned.
After Rachel Reeves‘ Budget statement last week, HM Revenue and Customs confirmed that VED fees would be “uprated” in line with inflation from April 2026.
HMRC said: “As announced at Budget 2025, the Government will introduce legislation in Finance Bill 2025-26 to uprate Vehicle Excise Duty rates for cars, vans and motorcycles in line with the Retail Price Index (RPI) for 2026 to 2027. This will take effect from April 1, 2026.”
Band A (100g/km CO2) – £20
Band B (101 – 110 g/km CO2 – £20
Band C (111 – 120 g/km CO2 – £35
Band D (121 – 130 g/km CO2 – £170
Band E (131 – 140 g/km CO2 – £200
Band F (141 – 150 g/km CO2 – £225
Band G (151 – 1165 g/km CO2 – £275
Band H (166 – 175 g/km CO2 – £325
Band I (176 – 185 g/km CO2 – £360
Band J (186 – 200 g/km CO2 – £410
Band K (201 – 225 g/km CO2 – £445
Band L (226 – 255 g/km CO2 – £760
Band M (Over 255g/km of CO2) – £790
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