Get ready to open your wallets wider, petrol and diesel car owners! As of April 2026, a significant shift in car tax is on the horizon, and it's set to impact those driving traditional combustion engine vehicles the most. This isn't just a minor tweak; we're talking about substantial increases that could add hundreds of pounds to your annual motoring costs.
Experts have been poring over the new Vehicle Excise Duty (VED) bands for 2026, and the message is clear: if you're driving a petrol or diesel car, you're likely to feel the pinch. These changes are being rolled out across the board, affecting both the initial registration tax for new cars and the ongoing annual charges. Essentially, if you're driving a car that contributes more to pollution, you'll be paying more to keep it on the road.
But here's where it gets particularly interesting for owners of cars registered after 2017: These vehicles will now face a standard VED charge of £200, a slight increase from the current £195. While this might seem like a small jump, it's the first-year tax for brand-new cars that sees a dramatic escalation. For those purchasing a new car that emits over 255g/km of CO2, brace yourselves for a first-year tax bill of a whopping £5,690, a substantial £200 leap from the current £5,490. And for cars emitting between 226 and 255g/km, the first-year tax will be £4,850, up from the previous £4,680.
And this is the part most people miss: The impact isn't limited to newer vehicles. For cars registered between March 2001 and April 2017, the VED fees are divided into 13 different tax bands. Again, higher emissions mean higher costs. Cars in Band M, emitting over 255g/km of CO2, will now cost £790 to tax, an increase from £760. Band L sees a £25 jump to £760, while Bands I, J, and K will go up by £15. Even cars in Bands F, G, and H will see a £10 increase, bringing their annual cost up from the previous rate.
For the classic car enthusiasts or those with vehicles registered before 2001, the VED is calculated based on engine size rather than emissions. Even here, there's an increase. Cars with engines 1,549cc or smaller will see a £10 rise, moving from £220 to £230 per year. The more powerful models with engines over 1,549cc will face a steeper increase, with their annual tax jumping from £360 to £375.
The big question now is: Is this a fair way to encourage greener driving, or is it an unfair burden on loyal petrol and diesel owners? What are your thoughts on these new tax bands? Let us know in the comments below – we'd love to hear your perspective!
