Company car tax calculator
See what a company car costs you in tax each month, and how the bill changes every year to 2029/30.
Company car tax (2026/27)
£27
a month (£320 a year)
- BIK rate
- 4%
- Taxable benefit
- £1,600
- Employer's Class 1A NI
- £240
| Year | BIK | Tax a year |
|---|---|---|
| 2025/26 | 3% | £240 |
| 2026/27 | 4% | £320 |
| 2027/28 | 5% | £400 |
| 2028/29 | 7% | £560 |
| 2029/30 | 9% | £720 |
| 2030/31 | 10% | £800 |
How company car tax works
A company car you can use privately is a taxable benefit in kind (BIK). The taxable value is the car's list price when new, including options and VAT, multiplied by a percentage set by its CO2 emissions. You pay income tax on that value at your highest rate, usually through a change to your tax code. Your employer pays 15% Class 1A National Insurance on it.
Example: a £40,000 electric car in 2026/27 has a BIK rate of 4%, so the taxable benefit is £1600. A basic-rate taxpayer pays 20% of that: £320 a year.
Company car BIK rates 2025/26 to 2030/31
| CO2 emissions | 2025/26 | 2026/27 | 2027/28 | 2028/29 | 2029/30 | 2030/31 |
|---|---|---|---|---|---|---|
| 0g/km (electric) | 3% | 4% | 5% | 7% | 9% | 10% |
| 1–50g/km, 130+ miles electric range | 3% | 4% | 5% | 18% | 19% | 20% |
| 1–50g/km, 70–129 miles | 6% | 7% | 8% | 18% | 19% | 20% |
| 1–50g/km, 40–69 miles | 9% | 10% | 11% | 18% | 19% | 20% |
| 1–50g/km, 30–39 miles | 13% | 14% | 15% | 18% | 19% | 20% |
| 1–50g/km, under 30 miles | 15% | 16% | 17% | 18% | 19% | 20% |
| 51–54g/km | 16% | 17% | 18% | 19% | 20% | 21% |
| 55–59g/km | 17% | 18% | 19% | 20% | 21% | 22% |
| 60–64g/km | 18% | 19% | 20% | 21% | 22% | 23% |
| 65–69g/km | 19% | 20% | 21% | 22% | 23% | 24% |
| 70–74g/km | 20% | 21% | 21% | 22% | 23% | 24% |
| 75–79g/km | 21% | 21% | 21% | 22% | 23% | 24% |
| 80–84g/km | 22% | 22% | 22% | 23% | 24% | 25% |
| 85–89g/km | 23% | 23% | 23% | 24% | 25% | 26% |
| 90–94g/km | 24% | 24% | 24% | 25% | 26% | 27% |
| 95–99g/km | 25% | 25% | 25% | 26% | 27% | 28% |
| 100–104g/km | 26% | 26% | 26% | 27% | 28% | 29% |
| 105–109g/km | 27% | 27% | 27% | 28% | 29% | 30% |
| 110–114g/km | 28% | 28% | 28% | 29% | 30% | 31% |
| 115–119g/km | 29% | 29% | 29% | 30% | 31% | 32% |
| 120–124g/km | 30% | 30% | 30% | 31% | 32% | 33% |
| 125–129g/km | 31% | 31% | 31% | 32% | 33% | 34% |
| 130–134g/km | 32% | 32% | 32% | 33% | 34% | 35% |
| 135–139g/km | 33% | 33% | 33% | 34% | 35% | 36% |
| 140–144g/km | 34% | 34% | 34% | 35% | 36% | 37% |
| 145–149g/km | 35% | 35% | 35% | 36% | 37% | 38% |
| 150–154g/km | 36% | 36% | 36% | 37% | 38% | 39% |
| 155g/km and over | 37% | 37% | 37% | 38% | 39% | 40% |
Diesel cars that don't meet the RDE2 standard pay 4% more, up to the maximum. In 2026/27 and 2027/28 only cars under 75g/km go up; cars from 75g/km stay at their 2025/26 rates. From 2028/29, all cars emitting 1–50g/km pay the same rate whatever their electric range. The rates up to 2029/30 are set in law (Finance Acts 2023 and 2025). The 2030/31 rates were announced in Budget 2026 and still have to be passed into law. A future Budget could change any of them.
Rates for 2026/27, checked against the official sources on : HMRC company car appropriate percentages, Finance Act 2025 (rates for 2028/29 and 2029/30), HM Treasury, Budget 2026 and GOV.UK Income Tax rates. Tax rules can change at a Budget; we update these tools when they do.
Frequently asked questions
›What is the P11D value?
The car's list price when new, including VAT, delivery and factory options, but not the first registration fee or the first year's car tax. Your employer can tell you the figure.
›Do I pay National Insurance on a company car?
No. Employees pay income tax on the benefit; the employer pays Class 1A National Insurance at 15%.
›Why is electric company car tax so low?
Zero-emission cars have the lowest BIK rate: 4% in 2026/27, rising to 5% in 2027/28, 7% in 2028/29 and 9% in 2029/30.
›Does paying towards the car reduce the tax?
Yes. A capital contribution to the purchase reduces the list price by up to £5,000, and anything you pay for private use reduces the taxable benefit pound for pound.