New car tax rates are being introduced today, which could see some petrol and diesel drivers pay thousands of pounds to keep their vehicles on the road.
From today, Wednesday, April 1, 2026, the Government has rolled out new Vehicle Excise Duty rates for motorists, many of which are increasing in line with inflation.
This includes first year rate, which is a flat cost paid by motorists who buy new vehicles, and applies to petrol, diesel, hybrid and zero emission vehicles.
Chancellor Rachel Reeves introduced new first year rate rules in 2024 to help make the gap larger for motorists buying petrol and diesel vehicles, and those who invest in electric cars.
She confirmed that first year rates for cars that emit more than 76g of CO2 per kilometre would see rates double in a bid to discourage uptake of internal combustion engine cars.
In comparison, zero emission cars would pay just £10, while low-emitting vehicles were charged £110, although the second rate has now increased to £115 for 2026.
The most polluting petrol and diesel vehicles that emit more than 225g/km will now face an enormous £5,690, a huge £200 hike from the £5,490 paid last year.
The huge tax charges will apply to 59 vehicles from popular car brands, placing additional costs on vehicles that are already some of the most expensive on the market.
New Vehicle Excise Duty tax rates have been introduced (April 1, 2026)
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Some of the vehicles that will see costs rise to £5,690 include the BMW X5 M 4.4 V8, Ford Mustang 5.0 V8, Mercedes-Benz GLE63, and the Toyota Hilux 2.8D.
Motorists will face these expensive costs, which are sometimes referred to as a “showroom tax”, if they buy a new vehicle, regardless of the powertrain.
As part of Labour’s aim to incentivise the purchase of new zero emission cars, electric vehicles attract the lowest rate, no matter how expensive the vehicle is.
GB News has rounded up the new first year Vehicle Excise Duty rates for drivers from April 1, 2026.
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First year car tax rates from April 1, 2026
0g/km – Remains at £10
1-50g/km – Rising from £110 to £115
51-75g/km – Rising from £130 to £135
76-90g/km – Rising from £270 to £280
91-100g/km – Rising from £350 to £365
101-110g/km – Rising from £390 to £405
111-130g/km – Rising from £440 to £455
131-150g/km – Rising from £540 to £560
151-170g/km – Rising from £1,360 to £1,410
171-190g/km – Rising from £2,190 to £2,270
191-225g/km – Rising from £3,300 to £3,420
226-255g/km – Rising from £4,680 to £4,850
Over 255gkm – Rising from £5,490 to £5,690