# Company car tax calculator 2026/27: BIK rates | ComputeNow

URL: https://computenow.co.uk/company-car-tax-calculator/

> Work out company car tax for 2026/27 from the list price and BIK rate, with free fuel, capital contributions and your own tax rate.

This calculator shows a worked example below. To use your own figures, add them to the URL as query parameters (listed in https://computenow.co.uk/llms.txt), for example https://computenow.co.uk/company-car-tax-calculator/?<parameter>=<value>.

[What's Left, step 3 of 7: Can I afford my car?](https://computenow.co.uk/money-plan/#steps)

# 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 18 October 2026
By the ComputeNow team, checked against GOV.UK and HMRC[Sources (2)](#sources)[How we calculate](https://computenow.co.uk/methodology/)

You pay
£28.00
a month in company car tax, £336 a year

## How it adds up

| Item | Year | Month |
| --- | --- | --- |
| List price | £42,000.00 |  |
| Benefit-in-kind rate for an electric car | 4% |  |
| 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

- [Take-home pay calculator](https://computenow.co.uk/take-home-pay/?benefits=1680)See your pay with this benefit included.
[What's Left](https://computenow.co.uk/money-plan/) adds up your monthly figures from each calculator and shows what is left each month.
[You pay £28.00 Breakdown](#result)

## 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.

## Related calculators

[EV salary sacrifice calculator What an electric car really costs you](https://computenow.co.uk/ev-salary-sacrifice-calculator/)[Vehicle tax calculator Yearly vehicle tax (car tax) for your car](https://computenow.co.uk/vehicle-tax-calculator/)[Take-home pay calculator Your pay after Income Tax and NI](https://computenow.co.uk/take-home-pay/)

## Guides and help

### Our guides

[Car tax in 2026: rates for every car First-year rates, the standard rate and the expensive car supplement](https://computenow.co.uk/guides/car-tax-2026/)[Salary sacrifice explained Pensions, electric cars and what you save](https://computenow.co.uk/guides/salary-sacrifice-explained/)[What does my tax code mean? 1257L, BR, 0T and K explained Read your code and see what it does to your pay](https://computenow.co.uk/guides/tax-codes-explained/)

### Official services and free advice

[Tax on company benefits GOV.UK: company cars, fuel and other perks](https://www.gov.uk/tax-company-benefits)[Check your Income Tax for this year GOV.UK: your tax code and pay so far](https://www.gov.uk/check-income-tax-current-year)[Tax codes explained GOV.UK: what yours means, and fixing a wrong one](https://www.gov.uk/tax-codes)

## Sources

Each source was last checked on 18 October 2026.

- [HMRC: Company car benefit appropriate percentages](https://www.gov.uk/guidance/company-car-benefit-the-appropriate-percentage-480-appendix-2)
- [GOV.UK: Rates and thresholds for employers 2026 to 2027](https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2026-to-2027)
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.