How much tax on your company car?
Enter the car's list price and CO2 to see what it costs you in tax each year.
Your answer
Enter the list price and your salary to see the tax.
About this calculator
For employees and directors with a company car, or choosing one.
What happens to your answers
We don’t keep them. Your answers go to our server to do the sums and aren’t stored or logged. If you copy a link to your answers, they’re in the link itself, so only share it with people you trust.
How it’s worked out
A share of the car's list price is taxed as if it were pay. The share depends on CO2: 4% for electric cars this tax year, up to 37% for the most polluting. Plug-in hybrids depend on their electric range. Diesels that don't meet RDE2 add 4%. Free fuel for personal trips is taxed on £29,200 times the same share.
Worked example
Your company car would cost you about £4,800 a year in tax, £400 a month.
2026/27 tax year · petrol · available all year · salary £60,000
| List price, with options | £40,000 |
|---|---|
| Taxed share for a petrol car (120g/km) | 30% |
| Taxed as if it were pay | £12,000 |
| Tax you pay a year | £4,800 |
Worked out using HMRC's published rates for the 2026/27 tax year (6 April 2026 to 5 April 2027), on a yearly basis.
Questions people ask
Is the list price what my employer paid?
No. It's the manufacturer's list price when new, including options, even if the car was bought second-hand or at a discount.
Why are electric cars so much cheaper?
Only 4% of the list price is taxed this year (5% next year), against up to 37% for petrol and diesel cars.
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