Company car tax calculator 2026/27
Company car tax is the car's list price times its benefit in kind percentage, times your tax rate. For 2026/27 the percentage is 4% for electric cars and rises with CO2 to a maximum of 37%. A £40,000 electric car costs a basic-rate driver £320 a year; a £40,000 petrol car at 120 g/km costs £2,400.
Source: HM Treasury and HMRC. Rates to 2029/30 are set in law; 2030/31 was announced in the 28 October 2026 Budget.
Company car tax calculator
For the driver and the employer, by tax year.
Paying for company car fuel? On the Department for Transport's curves a diesel car uses 12.3% less fuel per mile at 70 mph than at 80.
Talk to us about fleet fuel costsEngland, Wales and Northern Ireland income tax rates; Scottish rates differ. Rates to 2029/30 are set in law; 2030/31 was announced in the 28 October 2026 Budget and is still to be legislated. This is a guide, not tax advice.
Company car benefit in kind rates, 2026/27 to 2030/31
| CO2 g/km | 2026/27 | 2027/28 | 2028/29 | 2029/30 | 2030/31 |
|---|---|---|---|---|---|
| 0 (electric) | 4% | 5% | 7% | 9% | 10% |
| 1 to 50, 130+ miles electric range | 4% | 5% | 18% | 19% | 20% |
| 1 to 50, 70 to 129 miles electric range | 7% | 8% | 18% | 19% | 20% |
| 1 to 50, 40 to 69 miles electric range | 10% | 11% | 18% | 19% | 20% |
| 1 to 50, 30 to 39 miles electric range | 14% | 15% | 18% | 19% | 20% |
| 1 to 50, under 30 miles electric range | 16% | 17% | 18% | 19% | 20% |
| 51 to 54 | 17% | 18% | 19% | 20% | 21% |
| 55 to 59 | 18% | 19% | 20% | 21% | 22% |
| 60 to 64 | 19% | 20% | 21% | 22% | 23% |
| 65 to 69 | 20% | 21% | 22% | 23% | 24% |
| 70 to 74 | 21% | 21% | 22% | 23% | 24% |
| 75 to 79 | 21% | 21% | 22% | 23% | 24% |
| 80 to 84 | 22% | 22% | 23% | 24% | 25% |
| 85 to 89 | 23% | 23% | 24% | 25% | 26% |
| 90 to 94 | 24% | 24% | 25% | 26% | 27% |
| 95 to 99 | 25% | 25% | 26% | 27% | 28% |
| 100 to 104 | 26% | 26% | 27% | 28% | 29% |
| 105 to 109 | 27% | 27% | 28% | 29% | 30% |
| 110 to 114 | 28% | 28% | 29% | 30% | 31% |
| 115 to 119 | 29% | 29% | 30% | 31% | 32% |
| 120 to 124 | 30% | 30% | 31% | 32% | 33% |
| 125 to 129 | 31% | 31% | 32% | 33% | 34% |
| 130 to 134 | 32% | 32% | 33% | 34% | 35% |
| 135 to 139 | 33% | 33% | 34% | 35% | 36% |
| 140 to 144 | 34% | 34% | 35% | 36% | 37% |
| 145 to 149 | 35% | 35% | 36% | 37% | 38% |
| 150 to 154 | 36% | 36% | 37% | 38% | 39% |
| 155 to 159 | 37% | 37% | 38% | 39% | 40% |
| 160 and over | 37% | 37% | 38% | 39% | 40% |
| Maximum | 37% | 37% | 38% | 39% | 40% |
Company car fuel: the cost behind the tax
The fuel benefit charge makes free private fuel expensive for drivers, which is why many employers reimburse business miles at HMRC's advisory fuel rates instead. Either way the business pays for every business mile, and motorway speed decides how many litres that takes: 12.3% less fuel per mile at 70 mph than at 80 in a diesel car (DfT). AutoKontrol fits speed limiters to company cars as well as vans.
Guides
Questions people ask
What are the company car tax rates for 2026/27?
From 6 April 2026 the benefit in kind rate is 4% for fully electric cars, 4% to 16% for plug-in hybrids (1 to 50 g/km, by electric range), then 17% at 51 to 54 g/km rising one point per 5 g/km to a maximum of 37%. Diesel cars that do not meet RDE2 pay 4 points more, up to the same maximum.
How is company car tax calculated?
Multiply the car's list price (including options) by its appropriate percentage to get the benefit in kind, then by your income tax rate. A £40,000 electric car at 4% is a £1,600 benefit: £320 a year in tax for a basic-rate taxpayer. A £40,000 petrol car at 120 g/km is 30%: £2,400 a year.
What is the company car fuel benefit charge?
If the employer pays for private fuel, there is a second charge: £29,200 times the car's appropriate percentage for 2026/27. For a car at 30%, that is a £8,760 benefit, £1,752 a year for a basic-rate taxpayer. From 6 April 2027 the multiplier is £30,200 (Budget 2026).
How much does the employer pay on a company car?
Class 1A National Insurance at 15% of the benefit for 2026/27. For a £40,000 electric car that is £240 a year; for a £40,000 petrol car at 30%, £1,800.
What are the electric company car tax rates to 2031?
4% in 2026/27, 5% in 2027/28, 7% in 2028/29 and 9% in 2029/30, as already set in law. The 28 October 2026 Budget added 2030/31: 10% for electric cars, and one point more for every other band, with a 40% maximum. Plug-in hybrids move to a flat 18% in 2028/29, 19% in 2029/30 and 20% in 2030/31, whatever their electric range.
What about company vans?
For 2026/27 the van benefit charge is £4,170 a year and the van fuel benefit charge £798, both nil for zero emission vans. From 6 April 2027 they rise to £4,310 and £825 (Budget 2026). Ordinary commuting does not count as private use for vans.
Sources and method
- HM Treasury, Budget 2025: overview of tax legislation and rates, Annex A (company car tax). Appropriate percentages 2025/26 to 2029/30, diesel supplement and maximum
- HM Treasury, Budget 2026: overview of tax legislation and rates. Measure 1.25: 2030/31 rates (+1 point, 40% maximum). Measure 2.6: 2027/28 car fuel multiplier £30,200, van benefit £4,310, van fuel benefit £825
- HMRC, Van benefit charge and fuel benefit charges for 2026 to 2027. Car fuel benefit multiplier £29,200; van benefit £4,170 and van fuel benefit £798
- HMRC, Rates and thresholds for employers 2026 to 2027. Class 1A National Insurance 15%
Work it out in the calculator above.
DfT's fuel curves show a diesel van at 60 mph uses 14.5% less fuel per mile than at 68 mph.
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