BIK Tax Calculator UK 2026/27 rates
Understanding your BIK tax calculator is essential if you drive a company car in the UK. Whether you need a company car bik tax calculator for a petrol fleet or an electric vehicle, our 2026 tool delivers instant figures based on P11D value, CO₂ emissions, and fuel type. Use this guide and interactive calculator to calculate bik tax and stay compliant with HMRC thresholds.
Live BIK Tax Calculator 2026/27
Enter your company car details below — annual BIK tax payable is shown instantly.
How to calculate BIK tax (2026 update)
Find the car’s P11D value (list price incl. VAT & options).
Identify official CO₂ emissions (WLTP g/km).
Apply HMRC BIK percentage based on fuel type & CO₂ band (see table).
Multiply: P11D × BIK% = taxable benefit. Then × your income tax rate = annual tax due.
BIK tax rates 2026/27: CO₂ bands & percentages
| CO₂ emissions (g/km) | Petrol / standard BIK % | Diesel (non-RDE2) +4% | Electric (EV) rate |
|---|---|---|---|
| 0 (Electric) | 2% | N/A | 2% fixed |
| 1 – 50 | 12% | 16% | EVs: 2% regardless |
| 51 – 54 | 13% | 17% | |
| 55 – 59 | 14% | 18% | |
| 60 – 64 | 15% | 19% | |
| 65 – 69 | 16% | 20% | |
| 70 – 74 | 17% | 21% | |
| 75 – 79 | 18% | 22% | |
| 80 – 84 | 19% | 23% | |
| 85 – 89 | 20% | 24% | |
| 90 – 94 | 21% | 25% | |
| 95 – 99 | 22% | 26% | |
| 100 – 104 | 23% | 27% | |
| 105 – 109 | 24% | 28% | |
| 110 – 114 | 25% | 29% | |
| 115 – 119 | 26% | 30% | |
| 120 – 124 | 27% | 31% | |
| 125 – 129 | 28% | 32% | |
| 130 – 134 | 29% | 33% | |
| 135 – 139 | 30% | 34% | |
| 140+ | 37% (max) | 37% (cap) |
*For plug-in hybrids with CO₂ 1-50g/km, BIK% depends on electric range. Our calculator uses base petrol % + additional adjustment; see HMRC for exact PHEV figures.
Exclusive 2026 insights: BIK planning & future trends
EV advantage locked until 2028
Zero-emission vehicles remain at 2% BIK through 2026/27 and 2027/28. Fleet managers are shifting to electric — potential tax savings up to £3,500/year vs petrol.
Diesel surcharge trap
Non-RDE2 diesel cars attract +4% BIK supplement. Ensure your vehicle meets Euro 6d standard; many 2021+ models are RDE2 compliant, check the V5C.
Salary sacrifice & BIK
If you opt for salary sacrifice, the BIK value remains based on car list price, not sacrifice amount. Use our calculator to avoid unexpected tax.
Van BIK & other benefit types
For commercial vans, the van bik tax calculator uses a flat rate: for 2026/27, the van benefit charge is £3,960, and if private fuel is provided, an extra £757 applies. Meanwhile, bik tax calculator health insurance works differently: the taxable benefit is the premium paid by employer. Use our core calculator for cars; for health BIK, refer to HMRC guidance.
Quick checklist to lower your BIK tax
- Choose electric or low-CO₂ plug-in hybrid models (under 50g/km).
- Ensure diesel vehicles are RDE2 compliant to avoid the 4% surcharge.
- Minimise optional extras that increase the P11D value.
- Consider opting out of private fuel provided by employer if fuel benefit charge outweighs usage.
- Review your tax band: salary sacrifice pension contributions might reduce effective tax rate.
Frequently asked questions: BIK tax calculator UK
It uses HMRC 2026/27 CO₂ bands, diesel surcharge, and EV 2% rate. Always verify with your P11D and tax code.
Yes, but our tool focuses on car benefit only. Private fuel adds extra BIK (fuel benefit charge) which depends on CO₂ and a multiplier (£28,200 for 2026).
P11D includes list price, delivery, VAT, and all optional extras fitted at registration. It's the official value HMRC uses.
No, BIK tax is collected through your PAYE tax code or Self Assessment. The company pays Class 1A NIC on the benefit.
Yes — vans have a fixed benefit charge (£3,960 for 2026/27). Use our insight to estimate.
From 2027/28, plug-in hybrids with lower electric range may see BIK% increases. For now 2026 rates remain stable.
Each car is taxed separately, and total taxable benefit is added. Our calculator handles one vehicle at a time.
Important disclaimer – please read
TotalCalcHub provides the BIK tax calculator for estimation only. Based on 2026/27 HMRC rates, but individual circumstances vary. By using this page you acknowledge:
🇬🇧 UK-specific: Calculations are not official HMRC confirmation; always consult a qualified accountant. CO₂ percentages for plug-in hybrids may depend on electric range. The calculator assumes standard WLTP data. For precise tax liability, refer to your P11D form and tax code.
⚖️ No professional tax advice, liability is limited. Updated for 2026/27 tax year. External links and references are for informational use.