Petrol and diesel drivers are set to pay up to £200 more to use the roads under new car tax updates set to be introduced soon. Experts at Pete Barden have revealed the Vehicle Excise Duty (VED) car tax bands for the 2026/27 tax year, with the most polluting petrol and diesel owners again most affected.

VED rates rise every April in line with Retail Price Index (RPI) inflation, with almost all motorists set to be affected by some price hikes. Owners of brand-new petrol and diesel models pay the highest fees after rates were doubled last year. Although the new rises are not as steep as last year’s hike, the sheer scale of the annual bills means these owners still face the highest cash increase.

Brand new petrol and diesel owners face the highest increases. (Image: Getty)

According to Pete Barden, first-year VED fees for cars emitting over 255g/km will be £5,690 next year, up from the current £5,490 charge. The next highest polluting models between 226 and 255g/km of CO2 are next, with first-year owners paying £4,850 from 2026.

Although now as high as the most polluting owners, motorists in this category will still face a £170 fine, in addition to the £4,680 they currently pay. Cars emitting between 191 and 225g/km of CO2 will pay £3.420, up £120 per year from the current £3,300.

Last year, first-year VED fees were introduced for electric car owners for the first time, with owners facing an annual rate of £ 10. This was still seen as an incentive compared to the often four-figure sums slapped onto combustion owners.

However, Pete Barden has revealed that electric cars will not see any first-year VED rate rises in 2026, with bills remaining at the £10 annual rate. HM Revenue and Customs confirmed VED rates would rise in line with RPI inflation after the Autumn Budget was released last week.

HMRC said: “As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to uprate Vehicle Excise Duty rates for cars, vans and motorcycles in line with the Retail Price Index (RPI) for 2026 to 2027. This will take effect from 1 April 2026.”

First-year VED prices 2026/27 – full list

0g/km of CO2- £10

1 to 50g/km of CO2 – £115

51 to 75g/km of CO2 – £135

76 to 90g/km of CO2 – £280

91 to 100g/km of CO2 – £365

101 to 110g/km of CO2 – £405

111 to 130g/km of CO2 – £455

131 to 150g/km of CO2 – £560

151 to 170g/km of CO2 – £1,410

171 to 190g/km of CO2 – £2,270

191 to 225g/km of CO2 – £3,420

226 to 255g/km of CO2 – £4,850

Over 255g/km of CO2 – £5,690