{"id":8722,"date":"2025-07-07T09:22:54","date_gmt":"2025-07-07T08:22:54","guid":{"rendered":"https:\/\/www.exchangemycar.co.uk\/blog\/?p=8722"},"modified":"2026-05-15T15:14:04","modified_gmt":"2026-05-15T14:14:04","slug":"uk-car-tax-changes","status":"publish","type":"post","link":"https:\/\/www.exchangemycar.co.uk\/blog\/uk-car-tax-changes\/","title":{"rendered":"7 Key UK Car Tax Changes 2026 (A Complete Guide to Car Tax)"},"content":{"rendered":"

Several car tax changes will hit the UK drivers in 2026, including the owners of EVs<\/a> and ICE vehicles. Therefore, it’s important to understand the UK car tax changes 2026. From<\/span><\/span> updated exemptions to the new Benefit-in-Kind (BiK) rules, this guide breaks everything down.<\/span><\/p>\n

We\u2019ll walk you through the 7 key UK car tax changes in April 2025 so you can make informed decisions and stay road-ready in 2026 and beyond.<\/span><\/p>\n

Let’s get started!<\/p>\n

Car Tax Bands Explained<\/b><\/h2>\n

Before we get started with the UK 2025 car tax changes, let’s understand the car tax bands. In the UK, Vehicle Excise Duty (VED) depends on several factors, including your car’s age, engine, and emissions.<\/span><\/p>\n

To find out your rate, you\u2019ll need to check your car’s tax band<\/a>. If your car was registered after April 1, 2017, it falls into one of three bands: zero, standard, or premium.<\/span><\/p>\n

Cars registered between March 2001 and March 2017 are split by CO\u2082 emissions. The lower the emissions, the less tax you pay. <\/span>That said, you usually pay more in the first year. After that, a standard annual rate applies.<\/span><\/p>\n

You\u2019ll pay a rate based on a vehicle\u2019s CO2 emissions the first time it\u2019s registered. Similarly, you have to pay a higher rate for diesel cars that do not meet the Real Driving Emissions 2 (RDE2) standard for nitrogen oxide emissions.<\/span><\/p>\n

Here is a table that outlines the tax you have to pay when you register your vehicle for the first time:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
CO2 emissions<\/b><\/p>\n

(g\/km)<\/b><\/td>\n

Diesel cars (TC49) that meet the RDE2 standard, petrol cars (TC48), Alternative fuel and zero-emission cars\u00a0<\/b><\/td>\nAll other diesel cars (TC49)\u00a0<\/b><\/td>\nAlternative fuel cars (TC59)<\/b><\/td>\n<\/tr>\n
0<\/span><\/td>\n\u00a310<\/span><\/td>\n\u00a310<\/span><\/td>\n\u00a310<\/span><\/td>\n<\/tr>\n
1-50<\/span><\/td>\n\u00a3110<\/span><\/td>\n\u00a3110<\/span><\/td>\n\u00a3110<\/span><\/td>\n<\/tr>\n
51-75<\/span><\/td>\n\u00a3130<\/span><\/td>\n\u00a3130<\/span><\/td>\n\u00a3130<\/span><\/td>\n<\/tr>\n
76-90<\/span><\/td>\n\u00a3270<\/span><\/td>\n\u00a3350<\/span><\/td>\n\u00a3250<\/span><\/td>\n<\/tr>\n
91-100<\/span><\/td>\n\u00a3350<\/span><\/td>\n\u00a3390<\/span><\/td>\n\u00a3330<\/span><\/td>\n<\/tr>\n
101-110<\/span><\/td>\n\u00a3390<\/span><\/td>\n\u00a3440<\/span><\/td>\n\u00a3370<\/span><\/td>\n<\/tr>\n
111-130<\/span><\/td>\n\u00a3440<\/span><\/td>\n\u00a3540<\/span><\/td>\n\u00a3420<\/span><\/td>\n<\/tr>\n
131-150<\/span><\/td>\n\u00a3540<\/span><\/td>\n\u00a31360<\/span><\/td>\n\u00a3520<\/span><\/td>\n<\/tr>\n
151-170<\/span><\/td>\n\u00a31360<\/span><\/td>\n\u00a32190<\/span><\/td>\n\u00a31340<\/span><\/td>\n<\/tr>\n
171-190<\/span><\/td>\n\u00a32190<\/span><\/td>\n\u00a33300<\/span><\/td>\n\u00a32170<\/span><\/td>\n<\/tr>\n
191-225<\/span><\/td>\n\u00a33300<\/span><\/td>\n\u00a34680<\/span><\/td>\n\u00a33280<\/span><\/td>\n<\/tr>\n
226-255<\/span><\/td>\n\u00a34680<\/span><\/td>\n\u00a35490<\/span><\/td>\n\u00a34660<\/span><\/td>\n<\/tr>\n
Over 256<\/span><\/td>\n\u00a35490<\/span><\/td>\n\u00a35490<\/span><\/td>\n\u00a35490<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

[Source: gov.uk]<\/span><\/p>\n

7 Key UK Car Tax Changes April 2025<\/b><\/h2>\n
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Significant changes to car tax rates in 2025 will impact vehicle owners in the UK. <\/span>Let’s shed light on the 7 new car tax changes to be implemented from April 2025 in the UK<\/span>:<\/div>\n<\/div>\n<\/div>\n

1. Changes to Electric Vehicles Tax<\/strong><\/h3>\n

\"uk<\/p>\n

Big tax changes are made for electric car owners in 2025. Since April 1, 2025, new EVs are no longer exempt from the car tax<\/a>. EVs registered on or after this date will pay \u00a310 in the first year. From the second year onwards, the standard rate of \u00a3195 will apply.<\/span><\/p>\n

If your EV was registered between April 1, 2017, and March 31, 2025, you\u2019ll pay \u00a3195 annually. For older EVs registered between March 1, 2001, and March 31, 2017, the yearly rate is \u00a320.<\/span><\/p>\n

Also, if your EV costs over \u00a340,000, expect more taxes. From the second to sixth year, you\u2019ll pay a \u00a3425 supplement. That means a total of \u00a3620 each year for those high-end models.<\/span><\/p>\n

2. Car Tax Changes UK 2025 for Petrol, Diesel, and Hybrid Vehicles<\/strong><\/h3>\n

From April 1, 2025, new petrol, diesel, and hybrid cars<\/a> face higher first-year taxes. The first-year rate will now be double of what it was before. <\/span>If your car emits 1\u201350 g\/km of CO2, you\u2019ll pay \u00a3110 instead of \u00a310. For cars with 51\u201375 g\/km, the rate jumps to \u00a3130 from \u00a330.<\/span><\/p>\n

Even higher-emission cars are affected. For example, 91\u2013100 g\/km CO2 now costs \u00a3350, up from \u00a3175. Cars with 255+ g\/km CO2 face a huge jump \u2013 \u00a35,490 instead of \u00a32,745.<\/span><\/p>\n

After the first year, all cars registered after April 1, 2017, will pay a standard \u00a3195 annually. This is a small increase from \u00a3190. <\/span>Also, the \u00a310 hybrid discount is gone. Now, hybrids pay the same rate as petrol or diesel cars.<\/span><\/p>\n

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\n Facing Higher Car Tax Rates?\n <\/h3>\n

\n Petrol, diesel, and hybrid cars have higher first-year taxes from April 2025. Check your car’s value and explore options to sell or upgrade hassle-free.\n <\/p>\n\t\t\t\n <\/div>\n \t

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