New Car Tax Rates 2027: How Much Will Road Tax Cost in the UK?

The changes affect petrol, diesel, hybrid and electric cars. However, exactly how much you pay depends on when your vehicle was first registered, its CO2 emissions and, in some cases, its original list price.

Here is a breakdown of the new car tax rates for 2027, including the first-year rates for new cars, annual road tax for existing vehicles and what electric car owners need to know.

When Do the New Car Tax Rates Start?

The new UK car tax rates take effect on 1 April 2027 and apply during the 2027/28 tax year, which runs until 31 March 2028.

The government confirmed that Vehicle Excise Duty rates for cars, vans and motorcycles will increase in line with the Retail Prices Index (RPI).

This means motorists will see changes to both the standard annual rate and the first-year rates charged when a new car is registered.

The main change for cars registered from 1 April 2017 is:

• Current standard annual rate for 2026/27: £200

• New standard annual rate for 2027/28: £210

• Annual increase: £10

Although £10 might not seem like a significant increase, the impact can be much greater for drivers buying a new car with high CO2 emissions. First-year VED can reach £5,950 from April 2027.

It is also important to understand that not every car is taxed in the same way. The date of first registration determines which set of VED rules applies.

New Car Tax Rates 2027: First-Year Rates for Cars Registered From April 2017

If you are buying a brand-new car in 2027, the first-year vehicle tax rate will depend on its official CO2 emissions.

The first-year rate is paid when the vehicle is initially registered. After that, most cars move to the standard annual rate.

The following table shows the confirmed 2027/28 first-year VED rates for cars registered on or after 1 April 2017.

These figures show why checking a car's emissions before buying can make a difference to your budget.

For example, a new petrol car emitting 120g/km of CO2 will have a first-year tax bill of £475. A larger, more powerful car emitting 180g/km will cost £2,375 in first-year VED.

That is a difference of £1,900, even before considering fuel consumption, insurance and other running costs.

The first-year rate is particularly important if you are considering a powerful petrol or diesel car, a large SUV or a performance vehicle.

One additional point applies to certain diesel cars. New diesel vehicles that do not meet the Real Driving Emissions Step 2 (RDE2) standard can be charged at the next higher VED band.

Standard Annual Car Tax Rates From April 2027

After the first year, cars registered from 1 April 2017 generally move to a flat standard annual VED rate.

For the 2027/28 tax year, this will be £210 for most cars, regardless of whether they run on petrol, diesel, hybrid technology or electricity.

These rates apply to vehicles registered from 1 April 2017, subject to any applicable additional charges.

The previous system gave some low-emission vehicles a lower annual tax rate. However, the flat standard rate means that most cars registered under the post-April 2017 system now pay the same annual amount.

This is worth remembering when comparing used cars. An older hybrid or electric vehicle may have a different VED liability from a newer one, even if both have very low emissions.

Expensive Car Supplement 2027: What Happens to Cars Over £40,000?

The standard annual car tax rate is not necessarily the full amount you will pay if you own a more expensive vehicle.

Some cars are subject to an additional charge known as the Expensive Car Supplement (ECS).

For the 2027/28 tax year, this supplement will increase from £440 to £460 per year.

It applies for five years, starting from the second year of vehicle tax, to:

• Petrol and diesel cars with an original list price of more than £40,000.

• Zero-emission cars with an original list price of more than £50,000.

The thresholds are based on the vehicle's original list price when new, rather than what you pay for it as a used car.

This is an important distinction. Buying a three-year-old car for £25,000 does not automatically mean you avoid the supplement if its original list price exceeded the relevant threshold.

For example, a petrol car originally priced at £45,000 could be liable for the additional £460 charge during the applicable year. With the £210 standard rate, the total annual VED would be £670.

An electric car originally priced at £55,000 could also face the supplement, despite producing zero tailpipe CO2 emissions.

There are exemptions and specific rules around the qualifying period, so buyers should check the vehicle's individual tax position before making a decision.

Car Tax Rates 2027 for Older Cars Registered Before April 2017

If you own or are considering buying an older used car, the tax calculation is different.

Cars first registered between 1 March 2001 and 31 March 2017 are taxed according to their CO2 emissions band. Unlike newer cars, they do not automatically move to the same flat annual rate after the first year.

Here are the standard annual VED rates from 1 April 2027.

The figures highlight a significant difference between older and newer vehicles.

For instance, an older car in band A or B will continue to cost just £20 a year in vehicle tax. However, a car in band M will cost £825 annually from April 2027.

The original registration date is therefore just as important as the car's emissions when calculating road tax.

There is also a separate system for cars registered before 1 March 2001. These vehicles are taxed according to engine size:

Cars manufactured more than 40 years ago may qualify for the rolling historic vehicle exemption, subject to the applicable rules.

Are Electric Cars Taxed in 2027?

Yes. Electric cars are no longer automatically exempt from vehicle tax.

The rules changed on 1 April 2025, bringing electric vehicles into the VED system. This applies to both new and existing electric cars.

From April 2027, the main rates will be:

• New electric cars registered from 1 April 2025: £10 first-year VED.

• Electric cars registered from 1 April 2017 to 31 March 2025: £210 annual standard rate.

• Electric cars registered from 1 March 2001 to 31 March 2017: VED based on their relevant emissions band, generally £20 for zero-emission cars.

Electric cars registered from April 2025 with an original list price above £50,000 may also be liable for the Expensive Car Supplement.

This means that buying an electric vehicle does not necessarily mean avoiding road tax. In fact, some expensive electric cars can have a higher annual tax bill than many petrol or diesel alternatives.

Will Electric Cars Pay More Tax From 2028?

There is another change on the horizon that electric car buyers should be aware of.

The government plans to introduce Electric Vehicle Excise Duty (eVED) from April 2028.

Under the announced system:

• Fully electric and hydrogen cars will pay 3p per mile.

• Plug-in hybrid cars will pay 1.5p per mile.

This charge will be additional to normal VED rather than replacing it.

For example, an electric car covering 10,000 miles a year would generate an eVED charge of £300, based on the announced rate. A plug-in hybrid covering the same distance would generate £150.

The new mileage-based tax is not part of the April 2027 VED increase, but it is another factor worth considering when comparing the longer-term cost of owning an electric or plug-in hybrid vehicle.

How Much More Will Drivers Pay in Car Tax in 2027?

The actual increase depends on the vehicle's registration date and tax category.

For most cars registered from April 2017 onwards, the standard annual rate will increase by £10, from £200 to £210.

However, some older cars will see different increases depending on their VED band.

Here are a few examples:

For someone buying a used car, these differences can affect the overall cost of ownership quite significantly so it is worth checking the annual tax rate alongside the vehicle's insurance group, fuel economy, MOT history and expected maintenance costs.

How to Check the Road Tax on a Used Car Before Buying

The advertised price of a used car is only one part of the cost. Before agreeing to buy, it is sensible to check how much the vehicle will cost to tax and whether there are any issues that could affect its ownership costs.

There are several ways to do this.

1. Check the vehicle's registration details

The first registration date determines which VED system applies. A car registered before April 2017 may be taxed according to its emissions band, while a newer vehicle will generally have a flat standard rate after its first year.

2. Check its CO2 emissions

For cars using the emissions-based tax system, the official CO2 figure determines the relevant VED band. This information can also help you compare the running costs of different models.

3. Check the current vehicle tax status

You can use the government's free vehicle enquiry service to check a car's current tax status and other basic details.

You can also use the TopCarCheck free MOT check to look up basic vehicle information, including its first registration date, MOT status, engine size, fuel type and CO2 emissions.

4. Look beyond road tax

A car with low annual VED is not automatically a good buy. Outstanding finance, previous accident damage, mileage discrepancies and expensive mechanical problems can have a much bigger financial impact.

Before buying a used vehicle, it is worth carrying out a full vehicle history check to see whether there are any hidden issues that could affect its value, safety or legal status.

A TopCarCheck vehicle history check can help you investigate important details such as outstanding finance, recorded accident or insurance write-off history, theft records, vehicle valuation, MOT history and other available vehicle information.

This is particularly useful when comparing two cars with similar prices and advertised specifications. The cheaper vehicle may not necessarily be the better purchase if its history reveals problems that the seller has not mentioned.

Frequently Asked Questions About New Car Tax Rates 2027

When do the new UK car tax rates start in 2027?

The new Vehicle Excise Duty rates take effect on 1 April 2027. They apply throughout the 2027/28 tax year, ending on 31 March 2028.

How much will standard car tax be in 2027?

The standard annual VED rate for most cars registered from 1 April 2017 will be £210 from April 2027, an increase of £10 from the current £200 rate.

Will road tax increase for electric cars in 2027?

Yes. Most electric cars registered from April 2017 will pay the standard annual rate of £210 from April 2027. New electric cars registered from April 2025 will continue to have a £10 first-year rate before moving to the standard rate.

How much is first-year road tax for a new car in 2027?

It depends on CO2 emissions. First-year rates range from £10 for zero-emission cars to £5,950 for cars emitting more than 255g/km.

Will diesel cars pay more road tax in 2027?

Diesel cars will generally follow the same VED rate tables as petrol cars. However, certain new diesel vehicles that do not meet the RDE2 emissions standard can be charged at the next higher first-year tax band.

What is the Expensive Car Supplement in 2027?

The Expensive Car Supplement will be £460 per year in 2027/28. It generally applies for five years, from the second year of vehicle tax, to qualifying petrol and diesel cars originally priced above £40,000 and zero-emission cars originally priced above £50,000.

Will road tax be based on mileage in 2027?

No. The announced Electric Vehicle Excise Duty system is scheduled to begin in April 2028, not 2027. It will introduce a mileage-based charge for fully electric and plug-in hybrid cars alongside normal VED.

Where can I check how much tax a car has to pay?

You can use the official GOV.UK vehicle enquiry service to check a vehicle's tax details. You can also use TopCarCheck's free MOT check to look up basic vehicle information, including its registration date and CO2 emissions.

Final Thoughts: Check Car Tax Before Buying Your Next Car

The new car tax rates for 2027 are another reminder that the purchase price is not the only figure worth considering when buying a vehicle.

From April, most newer cars will cost £210 a year to tax, while some older high-emission vehicles will face annual bills of more than £800. Buyers of expensive vehicles should also pay attention to the Expensive Car Supplement, which will rise to £460.

If you are planning to buy a used car, check its registration date, emissions and current tax position before making a decision. Just as importantly, make sure you understand the vehicle's history.

A low-tax car can still turn out to be an expensive mistake if it has outstanding finance, previous accident damage or hidden mechanical problems.

Taking a few minutes to check the vehicle's history before handing over your money could save you considerably more than the annual road tax increase.