UK car tax in 2026: what changed and what to check
VED in 2026 changed the way EVs, hybrids and high-emission cars are taxed. Here's how it works, how much you'll pay, and what to check before you buy.
By Dean Griffiths ยท Published
The headline change: EVs pay VED
From April 2025, electric cars no longer get free road tax. A new EV registered after that date pays the standard first-year rate (ยฃ10) then the standard annual rate (ยฃ195) โ same as a small petrol. EVs over ยฃ40,000 at first registration pay the expensive-car supplement on top, same as any other car.
How much it actually costs your car
Three things decide the annual tax: first-year registration date, the car's CO2 figure, and whether it cost over ยฃ40,000 new.
- Registered before April 2017: tax is by CO2 banding. A 120g/km petrol is around ยฃ175/year; a 150g/km diesel is ยฃ315/year.
- Registered April 2017 to March 2025: most cars pay the standard ยฃ195/year after the first year, regardless of CO2.
- Registered April 2025 onward: ยฃ195/year standard rate. Cars over ยฃ40,000 new pay an extra ยฃ425/year (the 'expensive car supplement') for five years.
What a WheelsAI tax check shows
You get the current tax status (taxed / SORN / untaxed), the expiry date, and the exact annual cost for that VRM. If a listing says 'tax until August' but the DVLA database says SORN, someone isn't telling the truth.
The number most buyers miss
Used cars registered 2017โ2020 in the ยฃ10,000โยฃ20,000 band often come with the expensive-car supplement still applying for their first five years โ ยฃ425/year on top. A 2020 ยฃ42,000 Discovery Sport bought used in 2026 is still inside the five-year window, meaning the buyer inherits two more years of supplement. Factor that in.
The takeaway
Before you commit, run the WheelsAI tax check on the VRM. Compare the annual cost against what the dealer said. A ยฃ40/year discrepancy is a mistake; a ยฃ400 one is a surprise you don't want on day one.
Frequently asked questions
Frequently asked questions
Does tax transfer when I buy the car?
No โ that was changed in 2014. The seller's tax is refunded to them; the buyer must tax the car on the day of purchase. Do it online before you drive off.
Can I check tax without a V5C?
Yes. The VRM alone works for the check. You do need a V5C reference number to actually pay tax.
