The UK Government has confirmed that 59 petrol and diesel cars will face a record £5,690 first-year car tax charge from 1 April 2026, under sweeping car tax changes 2026 to Vehicle Excise Duty (VED).
The increase targets high-emission new vehicles and affects cars from 24 manufacturers, including Ford, BMW, Mercedes-Benz, Audi, and Toyota.
Buyers will pay the charge upfront when registering a new car, making it one of the highest hidden costs of ownership in years.
The policy is designed to push drivers away from high-polluting vehicles and towards electric alternatives, while sharply widening the cost gap between petrol, diesel, and EV ownership.
What has changed under the car tax changes 2026?
From April 2026, any new car emitting more than 255g/km of CO₂ will fall into the top VED band and trigger a £5,690 first-year tax payment.
This follows a steep rise already introduced in April 2025, when the same category jumped from £2,745 to £5,490. The latest increase adds another £200 on top, meaning the charge has more than doubled in just two years.
The tax is paid once, at the time of first registration. After that, vehicles revert to the standard annual rate, expected to rise to £200 per year.
Which drivers will feel the impact most?
The highest charges apply to large engines, heavy vehicles, and performance models, but the list is no longer limited to niche supercars. Popular SUVs, premium saloons, and working pick-ups now sit firmly in the firing line.
The brands most exposed include:
- BMW, Mercedes-Benz, and Audi performance models
- Land Rover and Range Rover V8 variants
- Ford Ranger pick-ups and the Ford Mustang
- Toyota Hilux and Land Cruiser diesel models
Luxury manufacturers such as Ferrari, Lamborghini, Bentley, Rolls-Royce, Aston Martin, and McLaren account for a significant share, but the presence of mainstream vehicles has raised concerns among everyday buyers.
Which cars face the £5,690 VED charge?
A full Government list confirms that the following models currently exceed the 255g/km CO₂ threshold and will be taxed at the top rate if registered after 1 April 2026:
- Audi RS6, RS7, RSQ8, R8, S8, SQ7 and SQ8
- BMW M8, X5 M, X6 M, X7 M and Alpina XB7
- Mercedes-Benz G63, G400D, AMG GT, GLC63, GLE63, GLS63h and SL55
- Ford Mustang 5.0 V8 and Ford Ranger (2.0 and 3.0 variants)
- Toyota Hilux 2.8D and Land Cruiser 2.8D
- Range Rover and Range Rover Sport V8 models
- Land Rover Defender 90 and 110 V8
- Porsche 911 Turbo, Cayenne V8, Macan V6 and 718 GT4
- Lamborghini Urus, Huracán and Revuelto
- Ferrari Roma and Purosangue
- Bentley Bentayga, Continental GT, and Flying Spur
- Rolls-Royce Ghost and Cullinan
- Aston Martin DBX, DB12, and Vantage
The charge applies only to brand-new registrations, not used vehicles already on the road.
How much car tax will most drivers pay instead?
Not every petrol or diesel driver faces the top band. VED still scales with emissions, meaning modest family cars see far smaller increases.
From April 2026, expected first-year rates include:
- £455 for cars emitting 111–130g/km of CO₂
- £1,410 for 151–170g/km
- £3,420 for 191–225g/km
- £4,850 for 226–255g/km
Electric vehicles remain at £10 for the first year, preserving a clear financial incentive at the point of purchase.
Why is the Government raising car tax so aggressively?
Chancellor Rachel Reeves said the policy is intended to speed up the shift away from internal combustion engines.
In her Budget speech, she stated: “The government is strengthening incentives to purchase electric vehicles by widening the difference in Vehicle Excise Duty First Year Rates between zero-emission cars and higher-polluting vehicles.”
The Treasury added that first-year VED is deliberately front-loaded to influence consumer behaviour, rather than spread evenly across ownership.
Are electric vehicles staying tax-free?
For now, EVs continue to enjoy a £10 first-year rate, and from April 2026, the luxury car tax threshold for EVs rises to £50,000, compared with £40,000 for petrol and diesel cars.
That change alone could save EV buyers £2,125 over five years. However, electric motoring will not remain untaxed indefinitely.
Is a pay-per-mile charge coming?
From April 2028, the Government plans to introduce a distance-based levy to replace lost fuel duty revenue.
The proposed rates are:
- 3p per mile for battery electric vehicles
- 1.5p per mile for plug-in hybrids
That would add roughly £300 for every 10,000 miles driven in an EV.
John Cassidy, sales managing director at Close Brothers Motor Finance, warned: “High-mileage drivers could see EV ownership become far more expensive than expected, particularly as public charging costs rise.”
Who is exempt from these car tax changes?
Several long-standing exemptions remain unchanged:
- Classic cars over 40 years old
- Disabled motorists are eligible for VED relief
- Vehicles registered before March 2001, which are taxed by engine size
