Will My Car Tax Go Up In 2026

So, you’re staring at your wallet, muttering, “Will my car tax go up in 2026?” I feel you. It’s the kind of question that makes you want to hide under a blanket and hope the government forgets you exist.

Let’s rip off the band-aid right now: Yes, for most of us, the cost is likely going up. But don’t panic—I promise this won’t be a boring lecture. We’re going to laugh through the dread together.

The Big, Not-So-Secret Secret

Every April, the Vehicle Excise Duty (VED)—fancy talk for “car tax”—gets a little nudge. It’s tied to the Retail Price Index (RPI), which is basically inflation’s grumpy older cousin.

Because inflation has been acting like a teenager at a buffet—grabbing everything in sight—the RPI is higher. That means your car tax will likely climb by the inflation rate plus a bit more for good measure.

Think of it as the universe’s way of reminding you that nothing is free. Not even the oxygen your car burns. (Okay, that’s dramatic, but you get the vibe.)

Who Gets Hit the Hardest?

If you drive a petrol or diesel car registered after 2017, you’re in the “standard rate” club. That’s the big bucket of “everyone pays.” In 2025, that’s around £190 a year. For 2026, expect that to jump to around £195 or £200, depending on just how spicy inflation gets.

But here’s the punchline: electric vehicle (EV) owners, your tax-free holiday is over. Yep, starting in 2025, EVs started paying the standard rate. By 2026, you’ll be right there in line with the rest of us. No more smug silence at the pump.

And if you own a gas-guzzling SUV or a luxury car? Brace yourself. The “expensive car supplement” (an extra £410 per year on cars over £40,000) isn’t going anywhere. In fact, it might even feel heavier in 2026.

But Wait—There’s a Tiny Ray of Hope

Before you set your car on fire for the insurance money, remember: the government usually announces these changes in the Autumn Budget. That’s like the big plot twist in November. So nothing is set in stone yet.

Speculation is the name of the game right now. Some experts whisper that the increase might be capped to avoid making everyone miserable during a cost-of-living crisis. Others say, “Nah, they’re coming for your wallet.”

Here’s the thing—you can almost predict this. Look at last year’s increase. In 2024, it went up by about 6% due to RPI. If inflation cools off by early 2026, the hike might be smaller. Fingers crossed, but don’t hold your breath.

How to Outsmart the Tax Man (Legally)

You could pay your car tax in one lump sum to avoid monthly interest charges. Boring but effective. Or, if you’re really clever, you can check if your car qualifies for a lower rate—some hybrids and low-emission diesels still get a discount.

Another pro tip: renew your tax before April 1st every year. The new rates kick in on that date. If you renew a day early, you lock in the old price for twelve months. That’s like finding a tenner in an old coat.

And if all else fails? Buy a bike. No, seriously. A bicycle costs zero tax, zero fuel, and you get to pretend you’re in the Tour de France while sweating through your shirt. It’s a win-win.

What About Electric Cars? (Our Beloved Weirdos)

As mentioned, EVs lost their zero-rate status in 2025. By 2026, they’ll pay the standard rate just like a petrol hatchback. Ouch. But don’t cry into your charging cable just yet—you still save on fuel and maintenance. So, in the grand scheme of things, you’re probably still ahead.

Plus, the government is dangling carrots for EV buyers, like reduced company car tax rates. So if you’re a business owner, this might actually be your moment. The taxman giveth, and the taxman taketh away.

The One Thing Nobody Tells You

Your car tax is based on CO2 emissions from when the car was new. So if you buy a used 2015 diesel, you’re locked into its original tax band forever. That’s right—you can’t cheat by driving less. The government thought of everything.

Unless you sell the car and buy something from 2017 or later, where the tax is flat. Then you just pay the standard rate like everyone else. It’s like a lottery, but the prizes are financial pain.

So, Will My Car Tax Go Up in 2026?

Short answer: probably yes. Long answer: it depends on inflation, the budget, and whether the Chancellor had a good night’s sleep. But a rise of £5 to £15 per year is a reasonable guess for most cars.

If you drive a luxury beast or a pre-2017 gas guzzler, prepare for a bigger sting. But if you’re in an average family hatchback? You’ll survive. That’s less than the cost of two takeaway coffees a month. Sip, cry, move on.

And here’s the uplifting bit—you are never alone in this. Every single driver on the road is getting the same letter from the DVLA. We’re all in the same slow-moving, tax-paying traffic jam together.

So, go ahead, mutter about inflation over your morning tea. Vent to your neighbor. Write a strongly worded letter to your MP. But when the dust settles, remember this: you’re still mobile, you’re still free, and you’re still the boss of your own steering wheel.

Taxes come and go, but the joy of a Sunday drive with the windows down? That’s timeless. And honestly, no amount of car tax can take that away. Keep rolling, keep smiling, and maybe start a side hustle selling homemade cake to cover the difference. You’ve got this.