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New Car Tax Shock: Thousands More for Polluters
1 Apr
Summary
- First-year car tax for high-emission new cars rises to £5,690.
- Electric vehicle owners face minimal car tax increases.
- Higher VED rates were doubled to encourage EV adoption.
As of April 1, 2026, new car tax rates are set to increase significantly, adding to the financial burden for motorists. Buyers of new petrol and diesel vehicles with high CO2 emissions are facing substantial hikes. The first-year 'showroom tax' for cars emitting over 255 grams per kilometre has surged by £200 to £5,690.
This increase disproportionately affects owners of high-emitting vehicles. For instance, models like the Alfa Romeo Stelvio Quadrifoglio, Ford Mustang, Ineos Grenadier, Jeep Wrangler Rubicon, Land Rover Defender V8, Porsche Macan S/GTS, and Toyota Land Cruiser diesel all fall into this highest tax bracket. These vehicles, while not all from luxury brands, will incur this significant upfront tax cost.
Conversely, electric vehicle owners will experience only minor adjustments to their car tax for the 2026-27 financial year. The significant increase in Vehicle Excise Duty (VED) for polluting vehicles was implemented to deter consumers from choosing them and encourage a transition to electric cars. This policy has resulted in 44 new car models and their derivatives being subjected to the highest tax rate.
