Company car tax calculator
Enter the P11D value, fuel type and CO2 from your car’s details. You’ll get the 2026/27 benefit-in-kind percentage, the taxable value, and the Income Tax you pay each month.
- HMRC appropriate percentages for 2026/27
- Figures checked 25 October 2026
- You’ll need the P11D value and CO2 figure, from your fleet manager or P11D form
Your result
Enter the car’s details.
How company car tax works
A company car you can use privately is a taxable benefit. HMRC sets a percentage for each CO2 band, and you pay Income Tax on that percentage of the car’s list price. It comes off your pay through your tax code, so most people never see a separate bill.
2026/27 percentages
| CO2 (g/km) | Electric range | Percentage |
|---|---|---|
| 0 | 4% | |
| 1–50 | 130 miles or more | 4% |
| 1–50 | 70–129 miles | 7% |
| 1–50 | 40–69 miles | 10% |
| 1–50 | 30–39 miles | 14% |
| 1–50 | Under 30 miles | 16% |
| 51–54 | 17% | |
| 55–59 | 18% | |
| 60–64 | 19% | |
| 65–69 | 20% | |
| 70–74 | 21% | |
| 75–79 | 21% | |
| 80–84 | 22% | |
| 85–89 | 23% | |
| 90–94 | 24% | |
| 95–99 | 25% | |
| 100–104 | 26% | |
| 105–109 | 27% | |
| 110–114 | 28% | |
| 115–119 | 29% | |
| 120–124 | 30% | |
| 125–129 | 31% | |
| 130–134 | 32% | |
| 135–139 | 33% | |
| 140–144 | 34% | |
| 145–149 | 35% | |
| 150–154 | 36% | |
| 155 and over | 37% |
Diesel cars that don’t meet RDE2 add 4 percentage points, up to the 37% maximum.
Worked examples
Electric, £42,000, higher-rate taxpayer. £42,000 × 4% = £1,680 taxable benefit. At 40% that’s £672 a year, or £56.00 a month. Your employer pays £252 in Class 1A National Insurance.
Petrol, £32,000, 128 g/km, basic-rate taxpayer. 31% gives a benefit of £9,920, so £1,984 a year in tax.
Plug-in hybrid, £48,000, 28 g/km, 52-mile electric range, higher rate. 10% gives a benefit of £4,800 and £1,920 a year in tax. The same car with a 70-mile range would drop to 7%.
Weighing up a car allowance instead? The tax on the allowance is simply your rate of Income Tax and National Insurance on the cash, so compare that with the figure above plus what you’d pay to run your own car.
Questions people ask
What is the BIK rate for electric company cars in 2026/27?
4%. A £40,000 electric car therefore has a taxable benefit of £1,600, so a basic-rate taxpayer pays £320 a year and a higher-rate taxpayer £640.
How is company car tax calculated?
Take the car’s P11D value (list price including options, VAT and delivery, but not the first registration fee or vehicle tax). Multiply it by the appropriate percentage for its CO2 and fuel. That gives the taxable benefit, which is taxed at your highest rate of Income Tax.
Do diesel company cars pay more?
Yes, unless they meet the RDE2 standard. Other diesels add 4 percentage points, up to the 37% maximum.
Does my employer pay anything?
Yes. Your employer pays Class 1A National Insurance at 15% on the taxable benefit. You don’t pay National Insurance on a company car.
What if my employer pays for fuel?
Free private fuel is a separate benefit, charged on a fixed amount multiplied by the car’s percentage. This calculator doesn’t include it.