Vehicle Excise Duty (VED) costs will rise from April 1, 2026, with cars registered between 2001 and 2017 facing the biggest increases
New car tax fees will affect owners of cars registered between 2001 and 2017(Image: Getty)
Millions of motorists with cars registered between 2001 and 2017 are bracing themselves for a hefty hike in car tax bills landing in just a few weeks time. Vehicle Excise Duty (VED) charges are set to climb for nearly every petrol, diesel and electric vehicle owner from April 1, 2026, as part of the yearly inflation -linked adjustment.
Both standard and first-year VED rates will go up for motors registered post-2017, whilst vehicles built before 2001 will also see steeper bills. But the most significant shake-up hits cars from the 2001-2017, where drivers face a tiered VED system based on their vehicle’s emissions output.
Vehicles fall into one of 13 tax brackets, with yearly costs jumping anywhere between £5 and £30 this spring. HMRC has confirmed the 2026 increases are routine adjustments, lifting charges in line with Retail Price Index (RPI) inflation.
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Since VED is mandatory by law, drivers have no choice but to stump up the annual fees to keep their wheels on the road. The dirtiest gas-guzzlers pumping out over 255g/km of CO2 in Band M face the steepest hit, with bills climbing from £760 to £790 annually.
Band L drivers – those with cars churning out between 226 and 255g/km of CO2 – are next in line for pain, facing a £25 annual increase from £735 to £760. Meanwhile, motorists in Bands I, J and K will see £15 added to their bills from April, whilst those in bands F, G and H face a £10 bump, reports the Express.
Prices will increase by £5 for vehicles in Bands D and E, which are models that emit between 121 to 130g/km and 131 to 140g/km of CO2. However, clean vehicles that emit less than 120g/km of CO2 will not be subject to any price increases, with annual Vehicle Excise Duty (VED) rates remaining the same as in 2025.
Here are the VED bands based on g/km CO2 emissions:.
A – Up to 100 – £20.
B – 101 to 110 – £20.
C – 111 to 120 – £35.
D – 121 to 130 – £170.
E – 131 to 140 – £200.
F – 141 to 150 – £225.
G – 151 to 165 – £275.
H – 166 to 175 – £325.
I – 176 to 185 – £360.
J – 186 to 200 – £410.
K – 201 to 225 – £445.
L – 226 to 255 – £760.
M – Over 255 – £790.
