UK company car tax bands: 2025 - 2030
Do you receive benefits or perks on top of your salary? If you have a company car for private use, you will have to pay a Benefit in Kind (BIK) contribution, or otherwise known as company car tax.
James Holland
Jan 2, 2026
Every car has a BIK percentage banding. This is based on CO2 emissions, and a P11D value, which is the list price, including extras and VAT, but without the first year registration fee and vehicle tax.
How do I calculate my BIK tax?
To calculate the company car - or BIK - tax, multiply the P11D value by the BIK percentage banding, then multiply that figure by your tax band - i.e. 20% or 40%. This will give you your annual tax. Divide by 12 to get your monthly outgoing.
The BIK bands are set by HMRC and are based on a vehicle's CO2 emissions. A rate applies to electric or alternative fuel cars that emit zero CO2 emissions.
If you drive a hybrid car that emits less than 50g/km, the rate is based on the zero-emissions range. This is the distance the car can go on electric power before its batteries need recharging.
The Government announced in the 2024 Autumn Budget new company car tax rates for 2028/29 and 2029/2030.
The rates for the current tax year are highlighted in bold, below.
The table can be scrolled horizontally to view more years.
CO2 (g/km) | Electric range (miles) | 2024/25 (%) | 2025/26 (%) | 2026/27 (%) | 2027/28 (%) | 2028/29 (%) | 2029/30 (%) |
|---|---|---|---|---|---|---|---|
0 | N/A | 2 | 3 | 4 | 5 | 7 | 9 |
1-50 | >130 | 2 | 3 | 4 | 5 | 18 | 19 |
1-50 | 70-129 | 5 | 6 | 7 | 8 | 18 | 19 |
1-50 | 40-69 | 8 | 9 | 10 | 11 | 18 | 19 |
1-50 | 30-39 | 12 | 13 | 14 | 15 | 18 | 19 |
1-50 | <30 | 14 | 15 | 16 | 17 | 18 | 19 |
51-54 |
| 15 | 16 | 17 | 18 | 19 | 20 |
55-59 |
| 16 | 17 | 18 | 19 | 20 | 21 |
60-64 |
| 17 | 18 | 19 | 20 | 21 | 22 |
65-69 |
| 18 | 19 | 20 | 21 | 22 | 23 |
70-74 |
| 19 | 20 | 21 | 21 | 22 | 23 |
75-79 |
| 20 | 21 | 21 | 21 | 22 | 23 |
80-84 |
| 21 | 22 | 22 | 22 | 23 | 24 |
85-89 |
| 22 | 23 | 23 | 23 | 24 | 25 |
90-94 |
| 23 | 24 | 24 | 24 | 25 | 26 |
95-99 |
| 24 | 25 | 25 | 25 | 26 | 27 |
100-104 |
| 25 | 26 | 26 | 26 | 27 | 28 |
105-109 |
| 26 | 27 | 27 | 27 | 28 | 29 |
110-114 |
| 27 | 28 | 28 | 28 | 29 | 30 |
115-119 |
| 28 | 29 | 29 | 29 | 30 | 31 |
120-124 |
| 29 | 30 | 30 | 30 | 31 | 32 |
125-129 |
| 30 | 31 | 31 | 31 | 32 | 33 |
130-134 |
| 31 | 32 | 32 | 32 | 33 | 34 |
135-139 |
| 32 | 33 | 33 | 33 | 34 | 35 |
140-144 |
| 33 | 34 | 34 | 34 | 35 | 36 |
145-149 |
| 34 | 35 | 35 | 35 | 36 | 37 |
150-154 |
| 35 | 36 | 36 | 36 | 37 | 38 |
155-159 |
| 36 | 37 | 37 | 37 | 38 | 39 |
160-164 |
| 37 | 37 | 37 | 37 | 38 | 39 |
165-169 |
| 37 | 37 | 37 | 37 | 38 | 39 |
170+ |
| 37 | 37 | 37 | 37 | 38 | 39 |
A 4% surcharge applies to diesel vehicles not meeting the RDE2 standard.
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