What Car Tax Bands Actually Mean in 2026 (and How to Find Yours)

• Your car tax depends on three things: the date the car was first registered, its CO2 emissions and, for newer cars, its list price.
• Cars registered from 1 April 2017 pay a CO2 based first-year rate from £10 ($13) to £5,690 ($7,397), then a flat £200 ($260) a year, plus £440 ($572) if the list price is over £40,000 ($52,000).
• Tax does not transfer when you sell, an untaxed car brings an £80 ($104) penalty letter, and a court can fine £1,000 ($1,300) or five times the tax owed, whichever is greater.

What Car Tax Bands Actually Mean and How Yours Is Worked Out

Your car tax band is set by the date your car was first registered. A car registered on or after 1 April 2017 pays a first-year rate based on CO2 emissions, from £10 ($13) to £5,690 ($7,397), then £200 ($260) a year from the second payment. A car registered between 1 March 2001 and 31 March 2017 sits in a lettered band from A to M, and the band is printed on the V5C registration certificate. Cars registered before March 2001 are charged by engine size.

That is the whole system in one paragraph, but the detail changes what you pay by hundreds of pounds. This guide explains each group, the extra charge for expensive cars, how to pay, and what happens when tax lapses or the car is sold.

Cars Registered From April 2017: A Big First Bill, Then a Flat Rate

GOV.UK sets the first-year rate for cars registered on or after 1 April 2017 by CO2 band. A zero emission car pays £10 ($13). A car emitting 1 to 50g/km pays £115 ($150), and 51 to 75g/km pays £135 ($176). Further up the scale, 111 to 130g/km pays £455 ($592), 131 to 150g/km pays £560 ($728), and 151 to 170g/km pays £1,410 ($1,833). The top band, over 255g/km, pays £5,690 ($7,397).

Diesels that do not meet the RDE2 emissions standard pay more in most bands. In the 131 to 150g/km band the GOV.UK table shows £1,410 ($1,833) for other diesels against £560 ($728) for petrol and RDE2 compliant diesels. Find the CO2 figure on the V5C before you assume which column applies to you.

From the second payment onwards, GOV.UK gives one rate for petrol, diesel, electric and alternative fuel cars: £200 ($260) for a single 12 month payment. Twelve monthly Direct Debit payments total £210 ($273), so spreading the cost adds £10 ($13) a year. A single six month payment is £110 ($143), and six months by Direct Debit is £105 ($137). Paying twice at six months costs £220 ($286) against £200 ($260) for one annual payment. According to Confused.com the standard rate was £195 ($254) in 2025/26, so the 2026/27 figure is £5 ($6.50) higher.

Electric cars follow the same pattern. GOV.UK shows the first-year rate for zero emission cars at £10 ($13), and after that they pay the same £200 ($260) standard rate as petrol and diesel cars. Confused.com notes that an electric pay-per-mile tax is due in 2028 but gives no rates for it.

The Expensive Car Supplement

A car or motorhome with a list price over £40,000 ($52,000), or an electric car over £50,000 ($65,000), pays an extra £440 ($572) a year on top of the standard rate. That brings a single 12 month payment to £640 ($832). GOV.UK says the supplement is payable for five years, starting from the second time the vehicle is taxed.

The test is the list price, not what you paid. CarGurus says the list price includes optional extras, so a car with a base price just under the threshold can still tip over it once options are added. GOV.UK also notes that zero emission vehicles registered before 1 April 2025 are exempt from the supplement, which is why two otherwise identical electric cars can face different bills depending on the registration date.

Cars Registered 2001 to 2017 and Older Cars

Cars registered between 1 March 2001 and 31 March 2017 pay a flat annual rate set by lettered CO2 bands. Confused.com lists the 2026/27 rates for petrol and diesel cars as follows. Band A, up to 100g/km, pays £20 ($26). Band E, 131 to 140g/km, pays £200 ($260). Band G, 151 to 165g/km, pays £275 ($358). Band L, 226 to 255g/km, pays £760 ($988), and band M, over 255g/km, pays £790 ($1,027). CarGurus says the band is shown on the V5C, which makes it the quickest way to confirm what a used car should cost to tax.

For cars registered before March 2001, CarGurus says the rate depends on engine size: £220 ($286) a year for engines under 1,549cc and £360 ($468) for larger ones. Very old vehicles can qualify for exemptions, so check the DVLA guidance for your vehicle before paying.

The practical point for anyone buying a used car is that registration date alone can swing the bill. A 2016 car in band G pays £275 ($358) every year, while a 2018 car pays the flat £200 ($260) from its second payment. Check the registration date and CO2 figure before you compare running costs.

Paying, Selling and What Happens If Tax Lapses

Car tax cannot be transferred. CarGurus says that when you sell a car the tax does not go with it, and if more than a month remains the DVLA automatically issues a refund once the new owner registers the car. The new keeper has to tax it before driving. DVLA checks for a valid MOT and insurance when you apply for tax, according to Confused.com, so a car without them cannot be taxed.

If tax lapses, enforcement starts automatically. GOV.UK says the registered keeper of an untaxed vehicle gets a late licensing penalty letter of £80 ($104), reduced to £40 ($52) if paid within 33 days. Unpaid penalties go to a debt collection agency, and DVLA can stop Direct Debit payments.

Using an untaxed car on a public road without a SORN brings an out-of-court settlement of £30 ($39) plus 1.5 times the outstanding tax. If that goes unpaid the case can reach the magistrates’ court, where the penalty is £1,000 ($1,300) or five times the tax owed, whichever is greater. Using a car on the road while a SORN is in force is treated more seriously, with an out-of-court settlement of £30 ($39) plus twice the outstanding tax and a court penalty of £2,500 ($3,250) or five times the tax owed, whichever is greater.

An untaxed car can also be clamped. GOV.UK lists a £100 ($130) clamp release fee payable within 24 hours, a £200 ($260) impound release fee once the car is moved to a pound, and £21 ($27) a day in storage from the time it arrives. Unclaimed vehicles are stored for 7 to 14 days and can then be auctioned, broken up or crushed.

Edge Cases Worth Knowing

The V5C is the document that settles most disputes. If the registration date, CO2 figure or band on a used car does not match what the seller told you, work out the tax yourself before you pay. A car sold as “cheap to tax” that turns out to be in band J at £410 ($533), as listed by Confused.com for 186 to 200g/km, is a very different purchase from one in band C at £35 ($46).

If you buy a car that has no tax, you cannot drive it away until it is taxed in your name. If you will not use it on the road, a SORN keeps you legal, but remember that using the car on a road while a SORN is in force carries the higher court penalty above.

Finally, the headline number is rarely the whole bill. A new car with low emissions can look cheap on tax for the first year, then add the £440 ($572) supplement from the second payment if its list price is over the threshold. Add that to your running cost sums before you sign.

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Sources:

• GOV.UK: Vehicle tax rates: Cars registered on or after 1 April 2017
• GOV.UK: DVLA enforcement of vehicle tax, registration and insurance offences
• Confused.com: UK car tax bands: VED rates for 2026/2027
• CarGurus: Road Tax, Car Tax, VED: What is Vehicle Excise Duty?