Millions of drivers across the UK could be hit with extra car tax costs in 2026 following the Chancellor’s introduction of new rules in the recent Autumn Budget.

Chancellor Rachel Reeves unveiled a host of new car tax changes in the Autumn Statement last month, headlined by the Electric Vehicle Excise Duty (eVED), which will see electric and hybrid owners charged per mile.

 

While this new policy will not be introduced until 2028, motorists across the country will have to deal with new car tax rules next year.

To help drivers adjust to the new changes coming over the coming months, GB News has rounded up all the new car tax measures launching in 2026.

The Chancellor confirmed in the Autumn Budget that Vehicle Excise Duty for cars, vans and motorcycles would be changing.

From April 1, 2026, the Government will uprate tax rates for these vehicles in line with the Retail Price Index.

Some drivers may not see their prices change at all, although some could be slapped with expensive costs, particularly if they have highly polluting vehicles.

Vehicle tax reminder and Chancellor Rachel Reeves

Chancellor Rachel Reeves oversaw several car tax changes in the Autumn Budget last month

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Expensive Car Supplement

From April, the Government will increase the Expensive Car Supplement threshold to £50,000 for zero emission vehicles only.

This will apply to any zero emission vehicles, including electric and hydrogen fuel cell cars, registered after April 1, 2025.

When announcing the change, Chancellor Rachel Reeves said she was “providing support to boost our British car industry”.

She noted that it would save more than one million motorists £440 a year, while also announcing £1.5billion in funding for the EV industry.

 

Chancellor Rachel Reeves confirmed that the Government would make changes to employee car ownership schemes (ECOS).

Speaking during last year’s Budget, the Chancellor said ECOs would be brought into the scope of Benefit-in-Kind (BiK) rules from April 6, 2026.

To give the sector more time to adjust to the changes, the Government will delay the implementation until April 6, 2030, and transitional arrangements until April 2032.

Similarly, a temporary BiK easement for plug-in hybrids has been introduced to prevent tax charges “increasing significantly” as a result of new emissions standards.

The easement will be in place from January 1, 2025, until April 5, 2028.

HGV

Heavy goods vehicle drivers will see price increases for VED and the HGV levy

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Heavy goods vehicles

Drivers of HGVs will also see the VED rate uprated in line with inflation, in the same move as cars, vans and motorcycles.

The Government stated that it would also uprate the Heavy Goods Vehicle levy in line with inflation from the start of the new financial year.