Diesel owners will pay higher Vehicle Excise Duty (VED) rates within weeks as major updates come into effect from April 1, 2026. Experts at AutoTrader have warned that cars which don’t meet strict new diesel emission standards could fall into the highest tax brackets this spring.
First-year rates for brand-new cars were doubled last year, with bills for the highest-polluting models emitting over 255g/km rising from £2,745 to £5,490. However, these charges are subject to annual inflationary rises with estimates suggesting a £200 rise, which would push total costs to £5,690 per year.
AutoTrader said: “If you drive a diesel car that doesn’t meet the Real Driving Emissions 2 (RDE2) standards, you will have to pay higher first-year VED, which means your tax bracket will fall in one higher Band rate than it would’ve with an RDE2-compliant diesel car.”
RDE2 (Real Driving Emissions step 2) is a strict European emission standard for diesel cars, requiring NOx emissions to be no greater than 80mg/km in real-world driving.
Most modern vehicles built after 2021 will have the standard in place and emit fewer emissions, but road users unsure should check before securing the keys to a model that could come with eye-watering bills.
However, VED costs are up across the board, with even slightly cleaner models emitting between 226 and 255g/km set to pay as much as £4,850 from April, up from £4.680. Meanwhile, cars emitting between 191 and 225g/km of CO2 are expected to be charged £3,420, up £120 per annum.
VED prices rise every Spring in line with Retail Price Index (RPI) inflation, and 2026 is set to be no exception to the annual tradition. HM Revenue and Customs (HMRC) confirmed the increase in VED rates shortly after Labour’s Autumn Budget.
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.”
AutoTrader added: “All drivers need to pay Vehicle Excise Duty (VED) – also known as vehicle tax, car tax, road tax or showroom tax – to keep driving on the UK roads.”
