Company car tax
Appropriate percentages
In the UK, HMRC's company car appropriate percentages for 2026/27 run up to 37 per cent, including any diesel supplement. This page compares the HMRC tables for 2025/26, 2026/27, 2027/28.
37%
4 points
£29,200
Checked on 7 September 2026.HM Revenue and Customs, Work out the appropriate percentage for company car benefits (480: Appendix 2) (as of 6 April 2026)
What is the appropriate percentage for a company car?
It is the share of the car's P11D value that counts as a taxable benefit each year. HMRC sets it from the CO2 figure, and for cars emitting 1 to 50 g/km from the electric only range instead, then you pay income tax on the result at your own rate.
Appropriate percentages, three tax years
| CO2 and electric range | 2025/26 | 2026/27 | 2027/28 |
|---|---|---|---|
| 0 g/km | 3% | 4% | 5% |
| 1 to 50 g/km, 130 miles and above | 3% | 4% | 5% |
| 1 to 50 g/km, 70 to 129 miles | 6% | 7% | 8% |
| 1 to 50 g/km, 40 to 69 miles | 9% | 10% | 11% |
| 1 to 50 g/km, 30 to 39 miles | 13% | 14% | 15% |
| 1 to 50 g/km, under 30 miles | 15% | 16% | 17% |
| 51 to 54 g/km | 16% | 17% | 18% |
| 55 to 59 g/km | 17% | 18% | 19% |
| 60 to 64 g/km | 18% | 19% | 20% |
| 65 to 69 g/km | 19% | 20% | 21% |
| 70 to 74 g/km | 20% | 21% | 21% |
| 75 to 79 g/km | 21% | 21% | 21% |
| 80 to 84 g/km | 22% | 22% | 22% |
| 85 to 89 g/km | 23% | 23% | 23% |
| 90 to 94 g/km | 24% | 24% | 24% |
| 95 to 99 g/km | 25% | 25% | 25% |
| 100 to 104 g/km | 26% | 26% | 26% |
| 105 to 109 g/km | 27% | 27% | 27% |
| 110 to 114 g/km | 28% | 28% | 28% |
| 115 to 119 g/km | 29% | 29% | 29% |
| 120 to 124 g/km | 30% | 30% | 30% |
| 125 to 129 g/km | 31% | 31% | 31% |
| 130 to 134 g/km | 32% | 32% | 32% |
| 135 to 139 g/km | 33% | 33% | 33% |
| 140 to 144 g/km | 34% | 34% | 34% |
| 145 to 149 g/km | 35% | 35% | 35% |
| 150 to 154 g/km | 36% | 36% | 36% |
| 155 g/km and above | 37% | 37% | 37% |
Benefit charges alongside the car
| Tax year | Car fuel multiplier | Van benefit charge | Van fuel benefit |
|---|---|---|---|
| 2025/26 | £28,200 | £4,020 | £769 |
| 2026/27 | £29,200 | £4,170 | £798 |
| 2027/28 | Not published | Not published | Not published |
No published The 2027/28 fuel and van benefit charge is available.
Rates announced for 2028/29 and 2029/30
- The cap rises to 38 per cent in 2028/29 and 39 per cent in 2029/30.
- Zero emission cars rise by two percentage points a year, to 7 per cent in 2028/29 and 9 per cent in 2029/30.
- Cars emitting 1 to 50 g/km lose the electric range split entirely and move to a flat 18 per cent in 2028/29 and 19 per cent in 2029/30. That is a very large jump for a plug in hybrid.
- Every other band rises a point a year, subject to the caps above.
HMRC has announced these figures but has not yet published the full rate tables for those years.
The diesel supplement
- 4 percentage points, added to a diesel car that is not certified to the RDE2 standard.
- RDE2 and Euro 6d are the same thing for this purpose, and the certificate of conformity confirms it.
- The supplement can never push the appropriate percentage above the 37 per cent cap.
- It never applies to a hybrid, a plug in hybrid, a petrol, an LPG or an electric car, whichever engine is under the bonnet.
Common questions
- Why do the bands from 75 g/km not change between years?
- Because they were frozen after the April 2025 rise. Bands up to 74 g/km keep rising a point a year while everything from 75 g/km upwards stays put, which is why 70 to 74 and 75 to 79 both sit at 21 per cent in 2027/28.
- What is the maximum appropriate percentage?
- 37 per cent, including any diesel supplement, in all three of the years on this page. It rises to 38 per cent in 2028/29 and 39 per cent in 2029/30.
- Where does the fuel benefit multiplier come in?
- Only where the employer pays for private fuel. The multiplier is a fixed figure set each year, multiplied by the same appropriate percentage as the car, and it is very often more than the fuel is worth.
- Are the 2027/28 figures final?
- The appropriate percentages are legislated, though they appear in HMRC's policy paper rather than in the operational guidance page yet. The fuel benefit multiplier for that year is not published at all, so no fuel benefit figure is shown for it.
Sources
- HM Revenue and Customs, Work out the appropriate percentage for company car benefits (480: Appendix 2) (as of 6 April 2026)
- HM Revenue and Customs, Taxation of company cars: the appropriate percentage for tax years 2025 to 2026, 2026 to 2027 and 2027 to 2028 (as of 21 November 2022)
- HM Revenue and Customs, Check future rates for petrol powered and hybrid powered company cars: CO2 emissions tables of rates (as of 24 November 2022)
- HM Revenue and Customs, Taxation of company cars: the appropriate percentage for tax years 2028 to 2029 and 2029 to 2030 (as of 30 October 2024)
- HM Revenue and Customs, Income Tax: cars appropriate percentage, increasing the diesel supplement (as of 6 April 2018)
- HM Revenue and Customs, How to work out the benefit of a company car (480: Chapter 12) (as of 15 April 2021)
- HM Revenue and Customs, Travel: mileage and fuel rates and allowances (as of 21 May 2026)
- HM Revenue and Customs, Van benefit charge and fuel benefit charges for cars and vans for tax year 2026 to 2027 (as of 3 December 2025)
- GOV.UK, Income Tax rates and Personal Allowances (as of 6 April 2026)
- GOV.UK, Income Tax in Scotland (as of 6 April 2026)