Vehicle tax rates rose on April 1, 2026, affecting most petrol, diesel, and hybrid cars registered after April 1, 2017. The standard annual rate is now £200 — or £210 if you pay monthly by Direct Debit, due to the instalment surcharge.
If your car had a list price above £40,000 when new (or £50,000 for electric), an additional £440 luxury supplement also applies, taking your total to £640 a year.
When: In effect from April 1, 2026
Who is affected: Drivers of petrol, diesel, or hybrid cars registered after April 1, 2017 What this means for you: If you pay by Direct Debit monthly, you are now paying £210 annually — not a new charge, just the confirmed new rate. Paying in a single lump sum costs £200.
Best action to take: Check your V5C logbook for your car's first registration date. If it's post-April 2017 and you pay monthly, budget for £210 this year. If your car's original list price exceeded £40,000, expect £640.
→ Full details: RAC Vehicle Tax Guide — https://www.express.co.uk/life-style/cars/2201171/dvla-confirms-new-210-direct
