UK road tax rates for 2026 — what changed in April 2026?
The 2026 Spring Budget confirmed that standard VED rates would increase in line with RPI inflation. For most cars registered after April 2017, the standard annual rate increased to £195 per year from April 2026. First-year rates for high-emission vehicles also increased, with the highest band rising to over £2,700 for cars emitting more than 255g/km of CO2.
Why are electric cars now charged road tax?
From 1 April 2025, electric vehicles (EVs) are no longer exempt from Vehicle Excise Duty (VED). The government cited the need to maintain roads funding as EV uptake reduced the revenue from fuel duty. EVs now pay the standard rate of £195/year from the second year of registration, and a first-year rate of £10 for zero-emission vehicles. The expensive car supplement (£410/year for years 2–6) applies to EVs with an original list price over £40,000.
What is the expensive car supplement and who pays it?
If your car's original list price (including options and delivery charges, but excluding registration) was over £40,000, you pay an additional £410 per year on top of the standard rate. This applies for years 2 through 6 of the car's life (5 years total). It applies to all fuel types including EVs from April 2025. After 6 years from first registration, the supplement ends and you pay the standard rate only.
How to pay your road tax — options and deadlines
You can tax your vehicle online at GOV.UK/vehicle-tax using your vehicle registration number and the 11-digit reference from your V5C logbook or renewal letter. Payment options include annual (cheapest), 6-monthly (10% surcharge), or monthly direct debit (5% surcharge annually). Road tax runs in monthly increments — you cannot get a partial month refund if you sell mid-month.
You do not need to display a tax disc — the system is entirely electronic and checked by ANPR cameras.