08.05.26 |10 min

Hybrid Car Road Tax Explained

What this article covers

●      Whether hybrid cars pay road tax in the UK and how the 2025 rule change affects you

●      VED rates for hybrids by registration date, including the full CO₂ band table for pre-2017 vehicles

●      The expensive car supplement and when it applies to hybrids over £40,000

●      How PHEV road tax compares to full hybrid, and what the April 2028 eVED system means

●       How hybrid road tax compares to petrol and electric cars in 2026

From April 2025, hybrid car road tax rules changed. The reduced annual rate that hybrid drivers previously benefited from was removed, and hybrids now pay the same standard Vehicle Excise Duty (VED) as petrol and diesel cars. As renewal letters arrive in 2026, many drivers are still working out what this means for their specific vehicle.

The amount you pay depends on when your hybrid was first registered and, for older models, its CO₂ emissions.

Hybrid range

What is hybrid car road tax?

Hybrid car road tax is the Vehicle Excise Duty (VED) that hybrid vehicle owners pay to legally keep or use their car on UK public roads. It is collected by the DVLA and renewed annually, either online or by Direct Debit. The amount you pay is not fixed across all hybrid cars. It depends on when the vehicle was first registered, its CO₂ emissions in some cases, and whether the list price exceeded certain thresholds when new.

VED is sometimes called road tax or car tax, though these are informal terms for the same charge. It applies to virtually all vehicles kept or used on public roads in the UK, regardless of fuel type. From April 2025, the rules for hybrids changed significantly, and many drivers are still working through what that means at renewal.

Do hybrid cars pay road tax in the UK?

Yes. Hybrid cars pay Vehicle Excise Duty (VED) in the UK. From April 2025, hybrids lost the £10 annual rate they had previously held as an alternative fuel vehicle discount, and they are now taxed at the same standard annual rate as equivalent petrol and diesel cars.

The exact rate depends on three factors. When your car was first registered determines which VED regime applies. For older models registered before April 2017, CO₂ emissions determine the band and rate. For cars registered from April 2017 onwards, a flat standard rate applies from the second year of registration. And if your hybrid had a list price above £40,000 when new, an additional expensive car supplement applies on top.

Honda electrified range including a grey Prelude, white CR-V, grey HR-V, white Jazz, grey ZR-V, and white Civic.

Hybrid car VED rates in 2026

Your hybrid car road tax rate falls into one of three categories, depending on when the vehicle was first registered.

 

Registered before 1 April 2017

For hybrid cars registered before this date, VED continues to be calculated on CO₂ emissions. The annual rates for the 2026/27 tax year are set out below. Rates are sourced from the DVLA vehicle tax rate tables at GOV.UK.

VED bandCO2 emissionsAnnual rate
AUp to 100g/km£20
B101–110g/km£20
C111–120g/km£35
D121–130g/km£170
E131–140g/km£200
F141–150g/km£225
G151–165g/km£275
H166–175g/km£325
I176–185g/km£360
J186–200g/km£410
K201–225g/km£445
L226–255g/km£760
MOver 255g/km£790

Source: GOV.UK vehicle tax rate tables (rates for cars registered on or after 1 March 2001). Check your V5C logbook for your vehicle's exact CO₂ figure.

 

Registered between 1 April 2017 and 31 March 2025

Hybrids registered in this period now pay the flat standard annual VED rate. From April 2026, that rate is £200 per year, regardless of CO₂ emissions or fuel type. This is an increase of £5 from the 2025/26 rate of £195.

Previously, hybrids in this registration window benefited from a £10 annual rate as an alternative fuel vehicle. That reduced rate was removed in April 2025. Drivers renewing in 2026 will pay the full £200 standard rate.

 

Registered from 1 April 2025 onwards

For new hybrid cars registered from April 2025, a first-year rate based on CO₂ emissions applies, known as the showroom tax. This varies significantly by emissions band. From year two onwards, the standard rate of £200 applies.

It is worth noting that the £10 first-year rate that applies to zero-emission electric vehicles does not apply to hybrids. Hybrids are not zero-emission vehicles, so their first-year rate is calculated on CO₂ output in the same way as petrol and diesel cars. A plug-in hybrid (PHEV) with CO₂ emissions of 1–50g/km pays a first-year rate of £10 because it falls within that low-emission band, not because it is treated as zero-emission.

The expensive car supplement and hybrid cars

If your hybrid car had a list price above £40,000 when it was first sold, an additional annual charge applies on top of the standard VED rate. This is known as the expensive car supplement, and it currently stands at £440 per year.

The supplement runs for five years from the second year of registration. So a hybrid with a list price of £45,000 registered in 2023 would pay £200 standard rate plus £440 supplement, totalling £640 per year, until the five-year period ends.

The threshold for hybrids and petrol or diesel cars remains £40,000. From April 2026, the threshold for zero-emission electric vehicles rises separately to £50,000. This is a meaningful distinction for buyers comparing hybrid and electric running costs. The list price is based on the manufacturer’s original selling price including optional extras, not the price paid after any discount.

Do PHEVs pay the same road tax as full hybrids?

Yes, in most respects. Plug-in hybrids (PHEVs) are taxed at the same standard VED rates as full hybrid cars. From April 2025, PHEVs registered after April 2017 pay the £200 standard annual rate, and the expensive car supplement applies to PHEVs with a list price above £40,000 in the same way as full hybrids.

One difference worth noting is in the first-year rate. PHEVs typically have lower CO₂ emissions than full hybrids because the electric motor carries a greater share of the WLTP test cycle. A PHEV with CO₂ emissions of 1–50g/km pays a first-year rate of £10, whereas a full hybrid with higher CO₂ output would pay more in year one.

Looking ahead, from April 2028 the government has announced a pay-per-mile system for plug-in hybrid vehicles, called eVED, currently set at 1.5p per mile. This is separate from standard VED and is subject to further government consultation. Full hybrids are not currently included in the eVED plans. 

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How does hybrid road tax compare to petrol and electric cars in 2026?

From April 2025, most hybrid cars pay the same £200 standard VED rate as petrol and diesel cars. The previous £10 reduced rate for alternative fuel vehicles has been removed, so there is no longer a standard-rate advantage to driving a hybrid from a road tax perspective alone.

Electric vehicles were also brought into the VED system in April 2025, where they had previously been exempt. New EVs registered from April 2025 pay £10 in year one, then the £200 standard rate from year two. Existing EVs registered between April 2017 and March 2025 now pay £200 from April 2026.

One area where the difference remains meaningful is the expensive car supplement. From April 2026, electric vehicles with a list price above £50,000 are subject to the supplement, while hybrids and petrol cars retain the £40,000 threshold. For buyers comparing a premium hybrid against an equivalently priced electric car, this distinction affects the five-year cost of ownership. The broader benefits of hybrid cars, including fuel efficiency advantages and the practicality of petrol refuelling, remain unchanged by the VED shift.

For drivers in London, hybrid and electric ownership has further cost implications through the Congestion Charge and ULEZ. 

Honda hybrid cars in 2026

Honda offers a range of e:HEV hybrid cars across different segments and price points, from compact hatchbacks to spacious SUVs. If you have a clearer picture of what hybrid car road tax means for your situation in 2026, the Honda hybrid range is a practical next step for exploring what is available.

Honda's Electrified Range
Honda electrified range including a grey Prelude, white CR-V, grey HR-V, white Jazz, grey ZR-V, and white Civic.

FAQs

How much is road tax for a hybrid car in 2026?

For hybrids registered between April 2017 and March 2025, the standard annual VED rate is £200 from April 2026. Older hybrids registered before April 2017 pay CO₂-based rates ranging from £20 to £790. New hybrid registrations from April 2025 pay a first-year CO₂-based rate, then £200 annually from year two.

Is road tax cheaper for a hybrid than a petrol car?

From April 2025, most hybrids pay the same £200 standard annual VED as equivalent petrol cars. The £10 reduced rate that hybrids previously held as alternative fuel vehicles was removed. For vehicles registered before April 2017, rates depend on individual CO₂ emissions, which vary between models.

Do plug-in hybrid cars pay road tax in the UK?

Yes. Plug-in hybrids pay VED at the same rates as full hybrids and petrol cars. From April 2025, PHEVs registered after April 2017 pay the £200 standard annual rate. PHEVs with a list price above £40,000 are subject to the expensive car supplement of £440 per year for five years from the second year of registration.

Want to know more?
Contact the Honda Sales Centre 0345 200 8000 (option 3)honda.digital.support@honda-eu.com.