Company Car Tax Calculator
Calculate the Benefit-in-Kind (BIK) tax on your company car. Updated with 2026/27 HMRC rates including EV incentives.
Annual Tax
£4,060
Monthly Tax
£338
BIK Rate
28.999999999999996%
| CO2 Emissions | BIK Rate | CO2 Emissions | BIK Rate |
|---|---|---|---|
| 0g/km (Electric) | 5% | 105-109g/km | 26% |
| 1-50g/km | 5% | 110-114g/km | 27% |
| 51-54g/km | 15% | 115-119g/km | 28% |
| 55-59g/km | 16% | 120-124g/km | 29% |
| 60-64g/km | 17% | 125-129g/km | 30% |
| 65-69g/km | 18% | 130-134g/km | 31% |
Frequently Asked Questions
How is company car tax calculated?
Company car tax is based on the car's P11D value (list price including options and delivery) multiplied by the Benefit-in-Kind (BIK) percentage. The BIK rate depends on the car's CO2 emissions. You then pay income tax on this benefit at your marginal rate.
What is the BIK rate for electric cars in 2026/27?
Electric vehicles (EVs) have a BIK rate of 5% for 2026/27. This makes EVs very tax-efficient as company cars compared to petrol or diesel vehicles which can have rates up to 37%.
What is the fuel benefit charge?
If your employer pays for private fuel, you'll pay tax on the fuel benefit. This is calculated as £27,800 (2026/27 multiplier) × BIK percentage × your tax rate. There's no fuel benefit for electric vehicles.
Is a company car worth it?
It depends on the car's emissions, your tax bracket, and how much you'd spend on a personal car. EVs are often tax-efficient as company cars. High-emission vehicles can result in significant tax bills. Compare the total cost including BIK tax against running your own car with a car allowance.