Drivers with older petrol and diesel cars could face higher road tax bills under updated VED rates for 2026.
Drivers with petrol and diesel cars registered between 2001 and 2017 could pay up to £170 a year in road tax under 2026 VED rates based on vehicle emissions.(Image: Getty Images)
Motorists with older petrol and diesel cars could face annual road tax bills of £170 under the latest Vehicle Excise Duty rates confirmed for 2026. The charges apply to vehicles first registered between March 2001 and April 2017, with tax costs continuing to depend on CO₂ emissions rather than the age of the vehicle itself.
Under the current VED structure, cars are divided into 13 separate tax bands. Lower emission vehicles pay less, while drivers of more polluting models face higher annual charges. Motorists whose vehicles fall into Band D, which covers cars producing between 121g/km and 130g/km of CO₂, will pay £170 a year from 2026.
Although Band D remains one of the most common categories, many drivers across the UK continue to pay close to £200 annually in road tax. Owners of vehicles that originally cost more than £40,000 can also face extra charges on top of the standard rate. Recent rule changes have also affected drivers of lower emission vehicles.
Since updates introduced in 2025, cars producing under 100g/km of CO₂ no longer qualify for free road tax. Instead, affected motorists must now pay at least £20 annually. According to Andy Wood, tax expert at Tax Barrister UK, many motorists still misunderstand how VED is calculated.
He said: “A lot of drivers still assume road tax is calculated purely on the age of the vehicle, but emissions remain one of the biggest factors in determining how much motorists pay.
“Even relatively modest differences in CO₂ output can place vehicles into entirely different tax bands, which can have a noticeable impact on annual running costs.”
Wood said many drivers were also caught out by recent changes affecting low emission vehicles that had previously qualified for zero rated tax.
He said: “The removal of the zero rate band for cars emitting under 100g/km has caught some drivers off guard because many had become used to paying nothing at all.
“While £20 may not sound substantial on its own, it reflects a wider shift towards bringing more vehicles into the VED system regardless of emissions performance.”
The changes form part of a broader move to ensure more motorists contribute towards the road tax system, even if their vehicles produce comparatively low emissions.
Drivers can pay their VED online using details from a V5C logbook, a DVLA reminder letter or a new keeper supplement. Payments can be made yearly, every six months or monthly through direct debit, although instalment plans can increase the overall cost.
Experts are also urging buyers to check tax bands carefully before purchasing second hand vehicles, as road tax differences between similar models can add hundreds of pounds to long term ownership costs.
Andy Wood said: “It is always worth checking exactly which tax band a vehicle falls into before purchasing a used car, particularly as ongoing ownership costs can vary much more than people expect.”
