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What's Left, step 3 of 7: Can I afford my car?

Company car tax calculator

See how much tax you pay on a company car as a benefit in kind, based on its list price, emissions and your tax rate.

2026/27 tax yearRates checked

By the ComputeNow team, checked against GOV.UK and HMRCSources (2)How we calculate

Including options and VAT, before any discount.

Fuel type

Found on the car's spec sheet or V5C.

Your Income Tax rate

In Scotland the rates are 19%, 20%, 21%, 42%, 45% and 48%.

More optionsElectric range, diesel supplement, free fuel, days unavailable, private use payments, your salary, what you paid towards the car

For plug-in hybrids under 51 g/km.

Adds the fuel benefit charge. Electric cars have none.

This tax year, spells of 30 days or more in a row. Optional.

A year, if you pay to use the car privately. Optional.

For the exact tax. Optional.

Where you live

Up to £5,000 comes off the list price. Optional.

No sign-up. No bank login. What you type stays in your browser.

You pay

£28.00

a month in company car tax, £336 a year

How it adds up

YearMonth
List price£42,000.00
Benefit-in-kind rate for an electric car4%
Car benefit£1,680.00£140.00
Tax at 20%£336.00£28.00

Your employer also pays £252.00 a year in Class 1A National Insurance on this benefit.

This is an estimate, not advice. A petrol car at 120 g/km with the same list price is taxed at 30%, which would cost you £2,520 a year at 20%.

Next steps

What's Left adds up your monthly figures from each calculator and shows what is left each month.

You pay £28.00Breakdown

How company car tax is worked out

HMRC sets a benefit-in-kind percentage for every car based on its CO2 emissions. For 2026/27 a fully electric car is 4%, and a petrol car at 120 g/km is 30%.

That percentage of the list price is added to your taxable pay. You then pay Income Tax on it at your normal rate, collected through your tax code.

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EV salary sacrifice calculatorWhat an electric car really costs youVehicle tax calculatorYearly vehicle tax (car tax) for your carTake-home pay calculatorYour pay after Income Tax and NI

Guides and help

Our guides

Car tax in 2026: rates for every carFirst-year rates, the standard rate and the expensive car supplementSalary sacrifice explainedPensions, electric cars and what you saveWhat does my tax code mean? 1257L, BR, 0T and K explainedRead your code and see what it does to your pay

Official services and free advice

Tax on company benefitsGOV.UK: company cars, fuel and other perksCheck your Income Tax for this yearGOV.UK: your tax code and pay so farTax codes explainedGOV.UK: what yours means, and fixing a wrong one

Sources

Each source was last checked on .

These results are an estimate, not financial advice. They use the 2026/27 rates in force on 24 October 2026 and the inputs shown, so your actual tax, pay or costs may differ. Before making a decision about your money, check the figures with HMRC or your provider, or speak to a regulated financial adviser. Free, impartial guidance is available from MoneyHelper.

This page explains the rules using the 2026/27 rates in force on 24 October 2026. It is general information, not financial advice. For decisions about your own money, speak to a regulated financial adviser, or get free, impartial guidance from MoneyHelper.