Company Car Tax Calculator
Work out the benefit in kind tax on a company car for 2026/27, using HMRC's appropriate percentages for petrol, diesel, hybrid and electric cars.
| CO2 (g/km) | Electric range | Percentage |
|---|---|---|
| 0 | n/a | 4% |
| 1 to 50 | 130 miles or more | 4% |
| 1 to 50 | 70 to 129 miles | 7% |
| 1 to 50 | 40 to 69 miles | 10% |
| 1 to 50 | 30 to 39 miles | 14% |
| 1 to 50 | Under 30 miles | 16% |
| 51 to 54 | 17% | |
| 55 to 74 | 18% to 21%, rising 1% per 5g/km | |
| 75 to 79 | 21% | |
| 80 to 154 | 22% to 36%, rising 1% per 5g/km | |
| 155 and above | 37% (maximum) |
Diesels that don't meet RDE2 add 4%, capped at 37%. Electric cars rise to 5% in 2027/28.
- £40,000 electric car: 4% gives a £1,600 benefit. A basic rate taxpayer pays £320 a year (£26.67 a month); a higher rate taxpayer pays £640.
- £35,000 plug-in hybrid, 30g/km, 45-mile range: 10% gives a £3,500 benefit, which is £700 a year at 20% or £1,400 at 40%.
- £30,000 petrol car, 130g/km: 32% gives a £9,600 benefit, which is £1,920 a year at 20% or £3,840 at 40%.
How is company car tax worked out?
Multiply the car's P11D value by its appropriate percentage, which depends on CO2 emissions and fuel type, to get the taxable benefit. You then pay income tax on that benefit at your marginal rate, usually through your tax code.
What is the company car tax rate for electric cars in 2026/27?
Electric cars with zero emissions have an appropriate percentage of 4% in 2026/27, rising to 5% in 2027/28. On a £40,000 electric car that is a £1,600 benefit, or £320 a year of tax for a basic rate taxpayer.
What is the P11D value?
The list price of the car when new, including VAT, delivery and any factory-fitted options, but not the first registration fee or the first year's vehicle tax. It is not what your employer paid, so discounts do not reduce it.
Why do diesel cars pay more?
Diesel cars that do not meet the Real Driving Emissions 2 (RDE2) standard pay a 4% supplement on top of the normal percentage, up to the 37% maximum. Diesels that meet RDE2 (usually Euro 6d) use the same rates as petrol cars.
Does my employer pay anything?
Yes. Your employer pays Class 1A National Insurance at 15% on the taxable benefit. You do not pay National Insurance on a company car benefit.
Source: HMRC: company car CO2 emissions tables of rates. This doesn't include car fuel benefit, which applies if your employer pays for private fuel. General information, not tax advice.