Drivers of some petrol and diesel cars may face a £170 annual VED bill in 2026 based on CO₂ emissions.

Drivers with cars registered between 2001 and 2017 could face annual Vehicle Excise Duty (VED) charges of £170 under the latest tax bands confirmed for 2026.. The updated rates apply to petrol and diesel vehicles first registered after March 2001 and before April 2017, with charges based on the vehicles’ CO₂ emissions.. Under the current system, vehicles are split into 13 tax bands, with lower-emission cars paying less road tax than higher-polluting models.. Drivers whose

vehicles fall into Band D, covering CO₂ emissions between 121 g/km and 130 g/km, will pay £170 annually.. Most motorists continue to pay around £200 a year in road tax, while owners of vehicles that originally cost more than £40,000 can face significantly higher charges.. Recent changes to VED rules also mean vehicles emitting under 100 g/km of CO₂ no longer qualify for free road tax.. Since the rule change was introduced in 2025, drivers

of these lower-emission vehicles now pay at least £20 annually.. Andy Wood, tax expert at Tax Barrister UK, said: “A lot of drivers still assume road tax is calculated purely on the age of the vehicle, but emissions remain one of the biggest factors in determining how much motorists pay.. Even relatively modest differences in CO₂ output can place vehicles into entirely different tax bands, which can have a noticeable impact on annual running costs.”

Andy Wood added that many motorists are unaware of how rule changes introduced in recent years have affected lower-emission vehicles.. He explained: “The removal of the zero-rate band for cars emitting under 100g/km has caught some drivers off guard because many had become used to paying nothing at all.. While £20 may not sound substantial on its own, it reflects a wider shift towards bringing more vehicles into the VED system regardless of emissions performance.”

Drivers can pay VED online using details from their V5C logbook, DVLA reminder letter or new keeper supplement.. Payments can be made annually, every six months or monthly via direct debit, although additional charges may apply for instalment plans.. Andy Wood said: “It is always worth checking exactly which tax band a vehicle falls into before purchasing a used car, particularly as ongoing ownership costs can vary much more than people expect.”

VED 2026, £170 road tax, CO2 emissions bands, UK vehicle excise duty, Band D cars, used car VED