Vehicle Excise Duty (VED) car tax bills have risen for drivers of petrol and diesel cars from April 2026, with electric vehicles also impacted — here’s what older drivers over 70 need to know
Pensioners have been hit with substantial tax increases in 2026(Image: Turbo via Getty Images)
State pensioners aged over 70 are facing increased car tax charges in 2026, with costs rising across all categories. Vehicle Excise Duty (VED) car tax charges are typically determined by a vehicle’s age and its emissions output, with the driver’s age playing no part in the calculation.
Unlike certain other charges, elderly motorists receive no exemption from VED road tax based on their age, meaning those over 70 pay identical rates to all other drivers. Consequently, state pensioners have been hit with substantial tax increases in 2026, with costs rising from April onwards.
Petrol and diesel vehicles registered after 2017 experienced a standard VED increase from £195 to £200 annually.
Brand new combustion engine cars in their inaugural year on the road faced eye-watering charges.
Some fees are climbing as much as £200 to reach £5,690 yearly in a significant setback, reports the Express.
This follows just 12 months after first-year tax charges were drastically doubled, with prices leaping from £2,745 to £5,490 for the 2025/26 tax year.
Vehicles registered between 2001 and 2017 are charged according to emissions, with the most polluting cars producing over 255g/km of CO2 now facing charges of up to £790 to use public roads.
Costs also increased for cars registered before 2001, with modern classics paying up to £15 more to drive since the beginning of the new tax year.
Electric vehicle owners were similarly affected, with EVs now subject to the £200 standard charge.
However, Expensive Car Supplement thresholds were adjusted upwards to £50,000, from the previous £40,000.
Meanwhile, vehicles with a list price above £50,000 will now face an additional £440 on top of their existing tax charges rather than £425 annually.
Only vehicles registered over 40 years ago are exempt from paying VED charges due to historic tax exemption regulations.
This means cars manufactured before 1986 are not required to pay road tax, providing a significant advantage for classic car enthusiasts.
