13 new car tax bands from 2026 with drivers facing £30 hike in VED – Birmingham Live
All the 13 car tax bands for petrol and diesel cars registered since 2001 – but before 2017 – have been revealed for the tax year beginning next year. After Christmas and the New Year, motorists face car tax hikes in 2026 thanks to annual upratings due to inflation.
The highest band – band M – faces £30 hikes to £790. The changes to VED rates to take effect from 1 April 2026 are set out in tables revealed by car and motoring experts at Pete Barden.
Vehicle Excise Duty (VED) bands and rates for cars first registered on or after 1 April 2017 are different. The Labour Party Chancellor combines various elements from inflation to roads policy and vehicle emissions when deciding how much to increase the amount drivers pay for VED – or road tax as most know it.
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VED band – Co2 emissions – standard rate
A – up to 100 – 20
B- 101 to 110 – 20
C – 111 to 120 – 35
D – 121 to 130 – 170
E – 131 to 140 — 200
F – 141 to 150 – 225
G – 151 to 165 – 275
H – 166 to 175 – 325
I – 176 to 185 – 360
J – 186 to 200 – 410
K – 201 to 225 – 445
L – 226 to 255 – 760
M – over 255 – 790
Next year will see the VED (Vehicle Excise Duty) Expensive Car Supplement (ECS) threshold for zero-emission cars, from its current level of £40,000 to £50,000.
This means that zero-emission cars with a list price which exceeds £40,000, but does not exceed £50,000, will no longer be required to pay the ECS charge when they take out a licence which comes into effect on or after 1 April 2026 which is not a first vehicle licence. The threshold will be maintained at its current level of £40,000 for all other cars.
Budget documents released last week announced the shake-up.
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