The example in the calculator
A new petrol SUV with CO2 of 140 g/km and a list price of £42,500 including the options chosen.
- Year 1: 131–150 g/km → £560.
- Years 2 to 6: standard rate £200 + supplement £440 = £640 a year.
- Year 7 onwards: back to £200.
- First six years: £560 + 5 × £640 = £3,760 — £2,200 more than the same car at £39,995.
What counts as the “list price”?
- The manufacturer’s published price for that exact version when new, including VAT.
- Plus any options and extras fitted before first registration — metallic paint, a bigger wheel pack, a tech pack.
- Not what you actually paid. Discounts, part-exchange and finance deals do not lower it.
- Not the used price. A three-year-old car that cost £45,000 new still pays the supplement until year 6.
Thresholds and amounts
| Car | Threshold | Years 2–6 | Year 7 on |
|---|---|---|---|
| Petrol, diesel, hybrid, plug-in hybrid (registered from April 2017) | Over £40,000 | £640 (£200 + £440) | £200 |
| Electric, registered from 1 April 2025 | Over £50,000 | £640 (£200 + £440) | £200 |
| Electric, registered April 2017 – March 2025 | Not charged | £200 | £200 |
Rates from 1 April 2026.
Close to the line? A small check can save £2,200
If a car is just under £40,000 before options, adding a £600 paint colour can tip it over. Ask the dealer for the full list price including options before you order. The Nissan X-Trail e-POWER on the main calculator (£38,340) and the Toyota C-HR Plug-in Hybrid (£39,175) sit just below the line in their base versions.
Ways to pay
You can pay £640 in one go, £352 for six months (55%), or £56 a month by Direct Debit (£672 over the year, 5% more).
Is it going away?
No change was announced in the 28 October 2026 Budget beyond the usual RPI rise in rates from April 2027. The £50,000 threshold for new electric cars applies to licences taken out from 1 April 2026.
Year by year at a glance
For the £42,500 petrol SUV in the calculator: year 1 £560, year 2 £640, year 3 £640, year 4 £640, year 5 £640, year 6 £640, and then £200 from year 7. If you are buying a nearly-new car, count the years from the date it was first registered, not from when you buy it. A car registered in June 2024 will finish paying the supplement after its sixth licence year, in 2030.
FAQ
How much is car tax on a car over £40,000?
£640 a year in years 2 to 6 (£200 standard rate plus the £440 supplement), then £200 from year 7.
Does the supplement apply to a used car?
Yes, if its list price when new was over £40,000 and it is in years 2 to 6 since first registration. What you paid for it used does not matter.
Do options count towards the £40,000?
Yes. Options fitted before first registration are part of the list price, so a £42,500 car in this example pays £3,760 in its first six years.
Sources: DVLA “Rates of vehicle tax” V149, rates from 1 April 2026 (assets.publishing.service.gov.uk); GOV.UK Vehicle tax rate tables; Deloitte Budget 2026 VED summary (RPI uprating from 1 April 2027). Model data: manufacturer UK price lists as listed above. Checked 5 November 2026.