Petrol, diesel and electric car drivers risk forking out huge £5,690 bill amid car tax hike

Drivers looking to get behind the wheel of a new car could face huge costs when registering their vehicle for the first time, regardless of the powertrain.

In April, new car tax rates were introduced in keeping with tradition, as first year rates increased in line with inflation for new purchases of vehicles.

Chancellor Rachel Reeves confirmed that Vehicle Excise Duty and first year rates would rise in line with inflation during last year's Autumn Budget, with new rates being introduced in the new financial year in April.

When buying a new vehicle, whether it's a petrol, diesel, hybrid or electric car, motorists will need to pay the first year tax rate before paying the standard rate from there onwards.

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With more drivers investing in electric cars, motorists are benefitting from lower costs, as the Government keeps tax rates low to incentivise purchases and reinforce the structure of emissions-based charges.

When buying a new electric car under £50,000, drivers can avoid the controversial Electric Car Supplement and will face a charge of just £10 for the first year in tax.

Despite fluctuating inflation rates, electric car owners continue to pay low rates as the Government pushes for drivers to ditch their petrol and diesel cars.

Motorists opting to buy new internal combustion engine vehicles will continue to face hefty costs, with the most polluting vehicles paying thousands of pounds.

Any vehicles that emit more than 255g of CO2 per kilometre will now pay a staggering £5,690, a huge £200 hike compared to last year's price of £5,490.

Labour changed the rules in 2024 to hike first year rates dramatically to incentivise the purchase of zero emission vehicles, with petrol and diesel rates above a certain emissions output, doubling.

GB News has rounded up the expensive charges drivers face when buying a new petrol, diesel or electric car.

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First year car tax rates from April 1, 2026

0g/km - Remains at £10

1-50g/km - Rising from £110 to £115

51-75g/km - Rising from £130 to £135

76-90g/km - Rising from £270 to £280

91-100g/km - Rising from £350 to £365

101-110g/km - Rising from £390 to £405

111-130g/km - Rising from £440 to £455

131-150g/km - Rising from £540 to £560

151-170g/km - Rising from £1,360 to £1,410

171-190g/km - Rising from £2,190 to £2,270

191-225g/km - Rising from £3,300 to £3,420

226-255g/km - Rising from £4,680 to £4,850

Over 255gkm - Rising from £5,490 to £5,690

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