This estimator starts with the statutory car price and chargeable accessories, deducts a qualifying capital contribution, applies the 2026/27 appropriate percentage and then the selected income-tax rate. It does not calculate every statutory adjustment.
How it works
- Enter the statutory car price and chargeable accessories before a qualifying capital contribution of up to £5,000.
- Multiply by the appropriate CO2 percentage for 2026/27 (4% electric, up to 37% for high-emission cars).
- Multiply by your income tax rate — 20%, 40% or 45%.
- If taxable employer-paid private fuel applies, the separate 2026/27 multiplier is £29,200.
Company car tax bands (2026/27)
| CO2 emissions / electric range | BIK rate |
|---|---|
| 0 g/km (electric) | 4% |
| 1-50, range 130+ mi | 4% |
| 1-50, range 70-129 mi | 7% |
| 1-50, range 40-69 mi | 10% |
| 1-50, range 30-39 mi | 14% |
| 1-50, range under 30 mi | 16% |
| 51-54 g/km | 17% |
| 55-59 g/km | 18% |
| 60-64 g/km | 19% |
| 65-69 g/km | 20% |
| 70-79 g/km | 21% |
| 80+ g/km | 22% to 37% max |
A non-RDE2 diesel generally adds 4 percentage points, capped at 37%. Check the car documentation for its RDE2 status.
Frequently asked questions
How is company car BIK tax calculated?
Start with the car price and chargeable accessories, deduct a qualifying capital contribution up to £5,000, multiply by the appropriate percentage, then apply your income-tax rate. This tool is a full-year estimate and does not calculate every statutory adjustment.
What is the electric company car tax rate for 2026/27?
A zero-emission company car uses a 4% appropriate percentage in 2026/27. The employee tax estimate also depends on the entered car price, qualifying contribution and selected income-tax rate.
What is the diesel surcharge?
A diesel that does not meet RDE2 generally receives a 4 percentage-point supplement, capped at 37%. Check the vehicle documentation rather than inferring RDE2 status from its registration year.
Which car price should I enter?
Use the statutory price for the car and chargeable accessories, not the employer’s discounted or second-hand purchase price. A qualifying employee capital contribution can reduce that price by up to £5,000.
What is the company car fuel benefit?
If your employer pays for private fuel and the benefit applies, the 2026/27 calculation uses a £29,200 multiplier and the car’s appropriate percentage. This tool shows the fuel benefit separately.
Does my employer pay anything too?
Yes. The employer pays Class 1A National Insurance on the taxable benefit, at 15% from April 2025. This calculator shows an estimate of that employer cost alongside your income tax.
This is a free, independent guide and estimate, not tax advice. Figures use HMRC company car rules for 2026/27 and income tax rates for England, Wales and Northern Ireland; Scottish taxpayers have different rates. Individual circumstances, availability periods, shared cars and other adjustments can change the result. Check GOV.UK or speak to an accountant for your exact position.