Company car tax calculator
This is the tax on a company car provided as a work benefit. If you want the annual road tax on a car you own yourself, that is Vehicle Excise Duty and you can look up the rate for your vehicle on gov.uk.
Company car tax is simple once decoded: P11D value × the car's appropriate percentage × your income tax rate. This works as a P11D calculator and a BiK calculator too, because those are the two inputs. For 2026/27 the percentage runs from 4% for a pure electric car to a 37% cap for the highest-emission petrol and diesel models, a spread so wide that the same £40,000 car costs a higher-rate taxpayer about £53 a month as an EV and nearly £400 a month in a 30%-band petrol model. That gap, not fuel economy, is why almost every new company car scheme is electric.
Calculator
Company car tax calculator
List price incl. options, before discounts
Exact petrol/diesel band by CO2: gov.uk table
Taxable benefit: £40,000 × 4% = £1,600.00 a year, costing you
£586.00 a year
£48.83 a month in extra income tax, usually collected through your tax code.
Why electric company cars dominate
The same £40,000 car costs £48.83 a month as an EV (4% BiK) against roughly £395.50 a month as a 30%-band petrol car. That gap, not fuel, is why nearly every new company car and salary-sacrifice car scheme is electric. No employee National Insurance is due on a benefit in kind; your employer pays Class 1A instead.
Company car tax bands 2026/27
The appropriate percentage is the slice of the P11D value HMRC taxes as income, set by the car's CO2 emissions — and, for a plug-in hybrid, by its official electric range. Both figures are on the car's V5C or the manufacturer's spec sheet.
| CO2 emissions (g/km) | BiK rate |
|---|---|
| 0 (pure electric) | 4% |
| 1 to 50, electric range 130+ miles | 4% |
| 1 to 50, electric range 70–129 miles | 7% |
| 1 to 50, electric range 40–69 miles | 10% |
| 1 to 50, electric range 30–39 miles | 14% |
| 1 to 50, electric range under 30 miles | 16% |
| 51 to 54 | 17% |
| 55 to 59 | 18% |
| 60 to 64 | 19% |
| 65 to 69 | 20% |
| 70 to 79 | 21% |
| 80 to 84 | 22% |
| 85 to 89 | 23% |
| 90 to 94 | 24% |
| 95 to 99 | 25% |
| 100 to 104 | 26% |
| 105 to 109 | 27% |
| 110 to 114 | 28% |
| 115 to 119 | 29% |
| 120 to 124 | 30% |
| 125 to 129 | 31% |
| 130 to 134 | 32% |
| 135 to 139 | 33% |
| 140 to 144 | 34% |
| 145 to 149 | 35% |
| 150 to 154 | 36% |
| 155 and above | 37% |
HMRC publishes this table for petrol and hybrid cars registered from 6 April 2020; some diesels carry an adjustment set out in the same guidance. Source: company car benefit — the appropriate percentage (480: appendix 2) on gov.uk, checked 2 September 2026.
What is a P11D value?
A car's P11D value is its manufacturer list price including VAT and factory-fitted options — before any fleet discount your employer negotiated, so a discounted car is taxed on the full price. It is the figure this calculator multiplies by the band above, which means that with the value from your employer the tool works as a P11D company car calculator.
What is BiK (benefit in kind)?
BiK, benefit in kind, is a non-cash perk your employer gives you that HMRC taxes as if it were income, and a company car is the biggest one most people ever get. HMRC treats a slice of the car's list price (the P11D value multiplied by the CO2-based percentage above) as extra income, and you pay income tax on that slice at your marginal rate, but no National Insurance. The charge applies whether or not you actually drive the car much, which is why a low-BiK electric car can be worth thousands a year less in tax than a petrol car of the same price.
The parts people get wrong
- P11D value is list price, including options and VAT, before any fleet discount your employer negotiated. A discounted car is taxed on the undiscounted price.
- The benefit is taxed at your marginal rate: and because it counts as income, a big-enough car benefit can push you into a higher band or the £100k taper. This calculator measures that properly instead of multiplying by a flat 20% or 40%.
- Hybrids are banded by electric range: 4% with 130+ miles of range, rising to 16% under 30 miles. The full petrol/diesel CO2 table is in the bands table above.
- Free fuel is a separate benefit with its own charge, worked out below — most drivers pay more tax on it than the fuel is worth.
The same cash-equivalent principle applies to every other perk on your P11D, from private medical insurance to an interest-free loan. For anything that is not a car, the benefit in kind calculator prices it through your tax code in the same way.
Is free fuel worth it?
Usually not. Employer-paid private fuel is taxed on a fixed £29,200 multiplier for 2026/27, whatever you actually spend at the pump: the taxable benefit is £29,200 × your car's BiK percentage. On a 30%-band petrol car that is £8,760 of extra taxable income — about £3,504 a year, or £292 a month, in tax for a higher-rate driver, which buys more petrol than most people use privately. Electric cars escape the charge entirely: HMRC does not treat electricity as fuel.
Source: fuel benefit charges for cars and vans, tax year 2026 to 2027 on gov.uk, checked 2 September 2026.
Percentages checked 2026-08-28 by Hadi against HMRC's appendix. The collection normally happens through your tax code, which is why company car drivers rarely see the standard code.
How to use the company car tax calculator
- 1
Enter the car's list price, its CO2 emissions and its fuel type.
- 2
Add the electric range if it is a plug-in hybrid, which changes the band.
- 3
Enter your salary so the benefit is taxed at your own rate.
- 4
Read the annual company car tax and the monthly cost against your take-home.
When should you use the company car tax calculator?
Use it before accepting or choosing a company car, since the tax depends far more on emissions than on the price of the car.
You are offered a company car
The tax depends far more on emissions than on the value of the car.
Choosing between two models
A low-emission car can cost a fraction of the tax of a similar petrol one.
A car allowance is offered instead
The allowance is taxed as pay, so the comparison is between two after-tax figures.
You have fuel provided too
The fuel benefit is charged separately and is often not worth taking.
Where to go next
- Electric car salary sacrifice calculatorTo an electric car through salary sacrifice.Open
- Benefit in kind calculatorTo tax on other benefits in kind.Open
- Tax code checkerTo the car changes your tax code.Open
All 51 calculators share one tested engine, so a figure from the company car tax calculator agrees with every other page here. See the full calculator index or the pay and tax guides.