Skip to main content
    WhatsUK

    Company Car Tax Calculator 2026/27

    A company car is taxed on benefit in kind: P11D value times a CO2 percentage, then your income tax rate. In 2026/27 a fully electric car is 4%, so a £45,000 EV creates £1,800 benefit and costs a 40% taxpayer £720 a year. Enter car details below for tax and employer NI.

    Figures verified against HMRC Income Tax rates on .

    James Hartley, CIMA qualified financial analyst

    Written by CIMA

    Last updated:
    Verified against HMRC Income Tax rates
    Uses official HMRC 2026/27 ratesUpdated for the current tax yearFree, no signup required

    Calculator

    Results

    Company car tax summary

    Annual tax on the benefit

    £720.00

    £60.00 per month at 4% of P11D

    • Appropriate percentage4%
    • Taxable benefit£1,800.00
    • Monthly tax£60.00
    • Employer Class 1A NIC£270.00
    Taxable benefit: equals P11D value times the appropriate percentage
    Fully electric cars: 4 percent for 2026/27 (rising to 5 percent in 2027/28)
    Petrol and diesel percentages: rise with CO2 emissions, up to a 37 percent cap
    Plug-in hybrids (1 to 50 g/km): are rated by their electric-only range
    Diesels that do not meet the RDE2 standard: add 4 percentage points
    Employers: pay Class 1A National Insurance on the benefit at 15 percent for 2026/27
    Your data stays private. All calculations run in your browser - nothing is sent to our servers.

    Stay updated

    Get UK Finance Tips Weekly

    Tax changes, HMRC rate updates, and money-saving guides. No spam - unsubscribe any time.

    Uses Official HMRC Rates 2026/27Last Updated: 15 June 202648 free calculators available
    Company car benefit in kind percentage by CO2 emissions for 2026/27, from 4 percent for electric to a 37 percent cap
    Company car benefit in kind percentage by CO2 emissions for 2026/27, from 4 percent for electric to a 37 percent cap
    Company car tax 2026/27, electric versus petrol on a £40,000 car for a 40 percent taxpayer
    Company car tax 2026/27, electric versus petrol on a £40,000 car for a 40 percent taxpayer
    Electric company car benefit in kind rate rising from 3 to 5 percent across 2025/26 to 2027/28
    Electric company car benefit in kind rate rising from 3 to 5 percent across 2025/26 to 2027/28
    Car type and emissionsAppropriate percentage 2026/27Benefit on a £40,000 carTax for a 40% payer
    Fully electric (0 g/km)4%£1,600£640
    Plug-in hybrid, 40 mile range (1 to 50 g/km)11%£4,400£1,760
    Petrol, 100 g/km25%£10,000£4,000
    Petrol, 120 g/km30%£12,000£4,800
    Petrol, 150 g/km35%£14,000£5,600
    High emission (155 g/km or more)37%£14,800£5,920

    How it is calculated

    1. Find the P11D value. Find the car's P11D value, which is the list price including VAT and delivery, less any capital contribution you made.
    2. Find the appropriate percentage. Find the appropriate percentage from the car's CO2 emissions, or for electric cars use 4 percent for 2026/27.
    3. Calculate the taxable benefit. Multiply the P11D value by that percentage to get the taxable benefit in kind.
    4. Apply your tax rate. Multiply the benefit by your income tax rate, for example 20 or 40 percent, to get your annual tax.
    5. Monthly cost and employer NIC. Divide by 12 for the monthly cost. Your employer separately pays Class 1A National Insurance at 15 percent on the benefit.

    Compare the benefit with your wider tax position using our income tax calculator. If you take the car through a salary sacrifice scheme, model the saving with the salary sacrifice calculator, check take-home pay on our UK salary after tax pages, and see employee National Insurance alongside employer costs on the limited company tax calculator.

    Frequently asked questions

    How is company car tax worked out in 2026/27?+
    You pay tax on a benefit in kind equal to the car's P11D value times an appropriate percentage set by its CO2 emissions. A £45,000 electric car at the 4 percent rate gives a £1,800 benefit, which costs a 40 percent taxpayer £720 a year.
    What is the electric car company car tax rate?+
    Fully electric cars are rated at 4 percent for 2026/27, rising to 5 percent in 2027/28. This keeps electric company cars far cheaper to run through salary schemes than petrol or diesel.
    What is a P11D value?+
    It is the car's list price including VAT, delivery and most factory options, less any one-off capital contribution you made towards it. It is not the price your employer actually paid.
    How are plug-in hybrids taxed?+
    Hybrids emitting 1 to 50 g/km are rated by their electric-only range: 5 percent for 130 miles or more, 8 percent for 70 to 129, 11 percent for 40 to 69, 14 percent for 30 to 39, and 16 percent below 30 miles.
    Why is my diesel taxed more?+
    Diesel cars that do not meet the Real Driving Emissions Step 2 standard add 4 percentage points to the appropriate percentage, capped at 37 percent. Most newer diesels meet RDE2 and avoid the surcharge.
    Does my salary affect the tax?+
    Yes. The benefit is the same, but you pay your marginal income tax rate on it, so a 40 percent taxpayer pays twice the tax of a 20 percent taxpayer on the same car.
    Does my employer pay anything?+
    Yes. Your employer pays Class 1A National Insurance on the benefit, at 15 percent for 2026/27, which is why low-emission cars are attractive to employers too.
    Is an electric company car worth it?+
    For most people yes. At 4 percent the taxable benefit is small, so the tax is low compared with the cost of buying or leasing the same car personally from taxed income, especially through a salary sacrifice scheme.
    How does Scotland differ?+
    The benefit and the percentages are the same UK-wide, but Scottish taxpayers pay their own income tax rates on it, so the tax can differ from the rest of the UK at the same salary.

    Related Calculators

    📊

    Income Tax Calculator

    Calculate UK income tax by band for 2026/27.

    💡

    Salary Sacrifice Calculator

    See tax and NI savings on pension, bikes and EV schemes.

    💷

    UK Salary After Tax

    See take-home pay for common salaries.

    🛡️

    National Insurance Calculator

    Calculate employee National Insurance for 2026/27.

    🏢

    Limited Company Tax Calculator

    Estimate corporation tax and dividends for directors.

    Related Guides

    Salary Sacrifice Explained: Pension, Bikes & Electric Cars

    How salary sacrifice cuts tax and NI on benefits including electric cars.

    Read guide

    Income Tax Bands 2026/27 Explained

    Personal Allowance, basic rate, higher rate and the 60% tax trap explained.

    Read guide
    Share:X / TwitterLinkedInWhatsApp

    Was this calculator helpful?

    97%(124 votes)

    Official Rates Used

    This calculator uses official HMRC rates for 2026/27. View the current rates at GOV.UK:

    gov.uk: Company car taxHMRC: Car benefit appropriate percentageHMRC: Class 1A National Insurance

    Rates last verified:

    Disclaimer: This calculator provides estimates based on standard HMRC rates for 2026/27. Results may vary based on individual circumstances. This is not financial advice. Always consult a qualified accountant or CIMA-qualified financial adviser for personal tax matters.

    HMRC rates verified for tax year 2026/27
    HMRC Verified Rates
    Updated April 2026
    48 Free Calculators
    SSL Secured