If you're buying a new car in 2026, the first-year Vehicle Excise Duty — sometimes called "showroom tax" — might come as a shock. For many vehicles, the rate has roughly doubled compared to two years ago. Here's exactly what you'll pay and why.
What is first-year car tax?
First-year VED is a one-off road tax charge based on the CO2 emissions of a new vehicle at the point of first registration. It only applies once — when the car is brand new. From the second year onwards, all post-April 2017 vehicles pay the same flat standard rate regardless of their emissions.
The first-year rate is designed to steer buyers towards lower-emission vehicles by making high-emission cars significantly more expensive to put on the road.
The full 2026/27 first-year rate table
These rates apply to new vehicles first registered on or after 1 April 2026:
| CO2 emissions (g/km) | 2024/25 rate | 2025/26 rate | 2026/27 rate |
|---|---|---|---|
| 0 (electric) | £0 | £10 | £10 |
| 1–50 | £10 | £110 | £115 |
| 51–75 | £30 | £130 | £135 |
| 76–90 | £135 | £270 | £280 |
| 91–100 | £175 | £350 | £365 |
| 101–110 | £195 | £390 | £405 |
| 111–130 | £220 | £440 | £455 |
| 131–150 | £270 | £540 | £560 |
| 151–170 | £680 | £1,360 | £1,410 |
| 171–190 | £1,095 | £2,190 | £2,270 |
| 191–225 | £1,650 | £3,300 | £3,420 |
| 226–255 | £2,340 | £4,680 | £4,850 |
| Over 255 | £2,745 | £5,490 | £5,690 |
The three-column view tells the story clearly. From 2024/25 to 2025/26, every band from 76 g/km upwards roughly doubled. The 2026/27 rates add another 3–4% on top. For the full picture of all VED rates including standard and pre-2017 bands, see our complete 2026 car tax rates guide.
Which cars are in the most expensive bands?
The highest first-year rates apply to vehicles emitting over 190 g/km CO2. These are predominantly:
Over 255 g/km — £5,690
- High-performance sports cars (Porsche 911 Turbo, BMW M5, Mercedes-AMG GT)
- Large V8 SUVs (Range Rover V8, BMW X5 M, Mercedes GLE AMG)
- Supercars and exotica
191–255 g/km — £3,420 to £4,850
- Performance saloons (BMW M3/M4, Audi RS models)
- Large SUVs (Range Rover Sport, Porsche Cayenne, Audi Q7)
- Some larger diesel SUVs
151–190 g/km — £1,410 to £2,270
- Mid-range SUVs and crossovers with larger engines
- Performance-oriented hot hatches
- Some executive saloons with 2.0+ litre engines
You can check any vehicle's CO2 emissions using our free car check tool — enter the registration number and the emissions figure is shown alongside the vehicle details.
The diesel supplement
Non-RDE2-compliant diesel vehicles pay first-year VED at one band higher than their CO2 emissions would normally dictate. For example, a non-RDE2 diesel emitting 85 g/km (which would normally fall in the 76–90 band at £280) instead pays the 91–100 band rate of £365.
Most new diesel cars sold since 2018 are RDE2-compliant, but if you're buying a leftover stock vehicle or a late-registration model, it's worth checking. The RDE2 status determines whether the diesel uplift applies.
How this compares to the ongoing annual rate
The contrast between first-year and standard rates is now enormous:
| First year (over 255 g/km) | Year 2 onwards | |
|---|---|---|
| 2026/27 | £5,690 | £200 |
A buyer paying £5,690 in first-year tax on a high-emission car will then pay just £200 per year from year two. The first-year rate is effectively a one-off penalty designed to discourage the purchase in the first place.
For comparison, an electric vehicle pays £10 in year one and £200 from year two. Over the first six years of ownership, the total VED cost looks like this:
| Vehicle | Year 1 | Years 2–6 | 6-year total |
|---|---|---|---|
| Electric (0 g/km, under £50k) | £10 | 5 × £200 | £1,010 |
| Efficient petrol (101–110 g/km, under £40k) | £405 | 5 × £200 | £1,405 |
| Average petrol (131–150 g/km, under £40k) | £560 | 5 × £200 | £1,560 |
| Performance (191–225 g/km, over £40k) | £3,420 | 5 × £640 | £6,620 |
| High-performance (over 255 g/km, over £40k) | £5,690 | 5 × £640 | £8,890 |
The six-year VED bill for a high-emission, expensive car is nearly nine times that of an electric equivalent.
What happened in April 2025
To understand the current rates, you need to know what changed last year. In April 2025, the government made two major moves:
- Doubled first-year rates for bands 76 g/km and above — turning a £2,745 top rate into £5,490
- Removed the alternative fuel discount — hybrid and biofuel vehicles no longer get a £10 reduction
The stated aim was to strengthen the emissions-based signal in first-year VED, making the tax more proportional to the environmental impact of the vehicle. The 2026/27 increases are a continuation of that policy, adding RPI-linked inflation on top of the doubled baseline.
Does this affect used car buyers?
No — directly. First-year VED is paid once by the original registering owner (usually the dealer or first buyer). If you buy a used car, the first-year rate has already been paid. From year two, you pay the standard rate of £200 plus the expensive car supplement if applicable.
However, the first-year rates do affect used car values indirectly. Higher showroom taxes make new high-emission cars less attractive, which can depress residual values for those models and potentially make them cheaper to buy second-hand. Our guide to cars that hold their value best explores which models are most affected. Something to watch if you're bargain-hunting for a used performance car.
Check any vehicle's full history — including tax status, MOT results, and mileage — with our car check tool.
Tips for new car buyers
- Check the CO2 figure before you commit. Different engine options and trim levels on the same model can span multiple VED bands. A configuration that pushes you from 150 g/km to 151 g/km costs an extra £850 in first-year tax.
- Consider registering before April. If you're buying a new car in the next few weeks, registering before 1 April 2026 saves you the RPI increase. On a high-emission car, that's up to £200.
- Factor first-year tax into the purchase price. Dealers often roll the first-year VED into the on-the-road price, so it's easy to overlook. Make sure you know how much of the price is tax.
- Compare total cost of ownership. Our car valuation tool and running costs breakdown can help you see the full picture beyond the sticker price.
The bottom line
First-year car tax for new vehicles has roughly doubled in two years and continues to climb. For buyers in the market for anything above 150 g/km CO2, the showroom tax is now a four-figure expense. Electric vehicles and efficient hybrids face minimal first-year charges, and the gap between them and high emitters has never been wider. Our guide to electric car road tax in 2026 has the full breakdown for EV buyers.
If you're buying new, the CO2 emissions figure on the spec sheet isn't just an environmental metric — it's a direct line to your tax bill. Know the number before you sign.