# What the April 2026 road tax changes actually mean for you

> From April 2026, EVs pay full road tax and the standard VED rate has risen. Here's exactly what changed, who it affects, and what to check on your car.

Canonical: https://motorbook.uk/articles/uk-road-tax-changes-2026/
Last updated: 2026-10-05

VED: April 2026

Electric cars now pay standard road tax from year two. Here's every rate that changed, and what to check on your own vehicle.

Nathan James · Updated 5 October 2026

TL;DR

From 1 April 2026, the standard UK road tax (VED) rate rose from £195 to £200 a year, and electric vehicles lost their historic tax exemption: EVs now pay a £10 first-year rate, then move to the standard £200 rate from year two onward, same as petrol and diesel cars. The expensive car supplement threshold for EVs also rose, from £40,000 to £50,000.

**£200** new standard annual VED rate

**£10** EV first-year VED rate

**£50k** EV expensive-car supplement threshold

## Sources

- Source: [Vehicle tax rates: cars registered on or after 1 April 2017](https://www.gov.uk/vehicle-tax-rate-tables) (GOV.UK, accessed Oct 2026)
- Source: [Vehicle tax for electric, zero and low emission vehicles](https://www.gov.uk/guidance/vehicle-tax-for-electric-and-low-emissions-vehicles) (GOV.UK / DVLA, accessed Oct 2026)
- Source: [VED expensive car supplement threshold increase for zero emission vehicles](https://www.gov.uk/government/publications/vehicle-excise-duty-for-expensive-car-supplement-threshold-increase-for-zero-emission-vehicles) (GOV.UK / HMRC, accessed Oct 2026)
- Source: [Company car benefit: appropriate percentage (480 Appendix 2)](https://www.gov.uk/guidance/company-car-benefit-the-appropriate-percentage-480-appendix-2) (GOV.UK / HMRC, accessed Oct 2026)
- Source: [Vehicle tax rates (V149 and V149/1)](https://www.gov.uk/government/publications/rates-of-vehicle-tax-v149) (GOV.UK / DVLA, accessed Oct 2026)

If you’ve owned an electric car and never had to think about road tax, that changed this year. From 1 April 2026, several updates to Vehicle Excise Duty (VED) came into force, and they affect nearly every driver, not just EV owners.

**VED from 1 April 2026**

| Vehicle | First-year VED | Year 2+ | Expensive car supplement threshold |
| --- | --- | --- | --- |
| EV | £10 | £200 | £50,000 |
| Petrol / diesel / hybrid (typical post-2017) | CO₂ banded | £200 | £40,000 |
| Standard annual rate change | - | £195 → £200 | - |
| EV company car BiK | - | 4% (up from 3%) | - |

## The headline change: EVs now pay road tax

Electric vehicles continue to get the lowest first-year VED rate, which remains at £10, but from year two onward, they move to the standard annual rate of £200, the same rate applied to petrol, diesel, and hybrid cars. For anyone who bought an EV specifically because road tax was free, this is a real annual cost that wasn’t there before.

## Everyone else pays a bit more too

The standard annual VED rate, which applies from the second year onwards, rose slightly from £195 to £200, and first-year costs also increased depending on a car’s CO² emissions, with the highest-emission band jumping by £200, bringing the top first-year charge to £5,690.

## The “expensive car supplement” threshold moved, but only for EVs

The Expensive Car Supplement threshold for petrol, diesel, and hybrid cars stays at £40,000, with the yearly supplement rising to £440, applied for five years from the vehicle’s second tax payment, while the EV threshold rises to £50,000, meaning electric cars priced under that amount no longer pay the additional charge. In practice, that means a mid-range EV under £50k is now cheaper to run than an equivalent petrol car over £40k, even though both are taxed for the first time.

## A small change for company car drivers

The company car Benefit-in-Kind (BiK) rate for EVs rises to 4%, up from 3% in 2025/26, modest, but worth knowing if you run an EV as a company car.

## What to actually do about it

- Check your car’s current VED status and renewal date, don’t assume it’s still exempt if you drive an EV
- If you’re budgeting for a new EV, factor in the £200/year from year two, not £0
- If your EV is priced near £40–50k, the supplement threshold could be the difference between paying an extra £440/year or not

Mileage-based EV duty is a later change: see [EV road tax 2028](https://motorbook.uk/articles/ev-road-tax-2028/) for that timeline. It is not the April 2026 VED change covered here.

## Related guides

- [EV road tax 2028: mileage-based duty later](https://motorbook.uk/articles/ev-road-tax-2028/)
- [Vehicle tax reminder app](https://motorbook.uk/vehicle-tax-reminder-app/)
- [14 ways to cut UK car running costs](https://motorbook.uk/articles/14-ways-cut-uk-car-running-costs/)

Track your MOT and tax dates from official DVLA/DVSA data. [Get Motorbook on the App Store](https://apps.apple.com/gb/app/mot-tax-service-log-motorbook/id6802884808).

## Frequently asked questions

Do electric cars still pay £0 road tax in 2026?

No. As of April 2026, EVs pay a discounted £10 first-year rate, then move to the standard £200 annual rate from year two onward.

Has the standard road tax rate gone up for petrol and diesel cars?

Yes, slightly: from £195 to £200 per year for most cars registered after April 2017.

What's the expensive car supplement threshold for EVs now?

£50,000, up from £40,000. Petrol, diesel, and hybrid cars remain at the £40,000 threshold.

When did EVs start paying standard road tax?

From 1 April 2026, year-two+ rate is £200.

Is the expensive car supplement the same for petrol and EVs?

No. Petrol/diesel/hybrid stay at £40,000; EVs rose to £50,000.

What is the EV company car BiK rate for 2026/27?

4% (up from 3%).

**Written by Nathan James**, the developer of Motorbook, an independent UK car-admin app for iPhone.

[Connect on LinkedIn](https://www.linkedin.com/in/nathanjamesnjoy/)