New Vehicle Excise Duty (VED) car tax rises are hours away, with changes coming into force on Wednesday. VED tax bands increase every year in line with Retail Price Index (RPI) inflation, with the latest price rises affecting almost every driver on the road.

Petrol, diesel and electric car owners are set to feel the sting, with price rises ranging from £5 to £200, depending on the type of vehicle they own. Express.co.uk breaks down who is affected and why in the ultimate guide ahead of the biggest tax changes of the year.

Motorists securing the keys to new petrol and diesel vehicles are set to be the most affected by new VED price hikes. First-year VED costs doubled last year, and road users face another extortionate increase in 2026.

Cars emitting over 255g/km of CO2 will pay £200 more to use the road, with the cost rising from £5,490 to £5,690 per annum. However, it doesn't end there, with cars emitting between 226 and 255g/km paying £170 more as bills reach £4,850.

The Expensive Car Supplement, an additional annual fee applied to more expensive vehicles, will also go up from £425 to £440 per year. However, the thresholds are set to change for electric car owners, with an update ensuring models with a list price of more than £50,000 will pay the fee, up from £40,000.

• 0g/km - stays at £10


• 1-50g/km - £115


• 51-75g/km - £135


• 76-90g/km - £280


• 91-100g/km - £365


• 101-110g/km - £405


• 111-130g/km - £455


• 131-150g/km - £560


• 151-170g/km - £1,410


• 171-190g/km - £2,270


• 191-225g/km - £3,420


• 226-255g/km - £4,850


• Over 255g/km - £5,690

Apart from new vehicles, most cars registered after 2017 will be charged at the standard VED rate. This is currently charged at £195 per year, but will increase by £5 to reach £200 per annum as of April 1.

Electric cars used to be exempt from this fee, but started paying VED last April, so owners will need to cough up the money to stay on the road.

Motorists in this category are filed into one of 13 tax bands solely dependent on overall vehicle emissions.

As expected, the most polluting vehicles will once again pay the highest rates, with cars in Band M emitting over 255g/km of CO2 set to be charged £30 more as bills hit £790 per annum.

Motorists in Band L emitting 226-255g/km of CO2 are next, with costs set to increase by £25 to £760 per year. Cars in Bands I, J and K face a £15 increase, with costs up £10 per year for those in Bands F, G and H.

Motorists in Bands D and E face a £5 rise. But owners of less-polluting models will not be affected.

Cars in Bands A, B and C will not face higher charges, meaning any cars emitting less than 120g/km of CO2 are safe from price hikes this time around.

• A: Up to 100g/km - £20


• B: 101-110g/km - £20


• C: 111-120g/km - £35


• D: 121-130g/km - £170


• E: 131-140g/km - £200


• F: 141-150g/km - £225


• G: 151-165g/km - £275


• H: 166-175g/km - £325


• I: 176-185g/km - £360


• J: 186-200g/km - £410


• K: 201-225g/km - £445


• L: 226-255g/km - £760


• M: Over 255g/km - £790

Older cars are exempt from VED only once they reach 40 years of age underthe rolling historic tax exemption rule. Cars first registered between 1986 and 2001 pay VED based on the total size of their engine, although costs are up across the board.

Larger cars with engines at 1549cc or above will pay £15 more to use the roads, with costs up from £360 to £375 per year.

Meanwhile, smaller models with engines below 1549cc will pay £230 to get behind the wheel, a £10 rise on the current £220 charge.