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Jersey motorists face higher vehicle taxes under 2026 Budget
Higher-emission cars face increases of up to 25% in vehicle duty as the government strengthens its environmental tax policy, while a separate annual car ownership charge remains under consideration.
19th October 2026 - By Staff Reporter
Jersey motorists are facing higher costs when registering vehicles under the island’s 2026 Budget, with the largest increases targeting cars that produce the highest levels of carbon dioxide.
The Budget 2026–2029, approved by the States Assembly in December 2025, increases Vehicle Emissions Duty (VED) by between 5% and 25% for standard petrol, diesel and hybrid vehicles, depending on their emissions. The government estimates that the changes will generate an additional £520,000, which will be transferred to the Climate Emergency Fund.
Despite concerns about a possible new car ownership tax, the budget does not introduce a separate annual charge for keeping a vehicle. Instead, it increases the existing duty payable when a vehicle is first registered in Jersey.
Biggest increases for high-emission vehicles
Under the revised rates, motorists registering vehicles in the highest emissions category will face a substantial increase in duty.
Cars emitting 201 grams or more of CO₂ per kilometre will see the charge rise from £9,921 to £12,401 — an increase of £2,480. Vehicles emitting between 176 and 200 grams will see their duty increase from £4,830 to £5,796.
By comparison, the increase for vehicles emitting between 76 and 100 grams of CO₂ per kilometre is more modest, rising from £240 to £252.
The lowest-emission category, covering vehicles producing between one and 50 grams of CO₂ per kilometre, will see duty increase from £35 to £37. Vehicles with zero recorded emissions remain exempt from the charge under the published rates.
The changes reflect the government’s policy of making higher-emission vehicles more expensive to register while encouraging the transition towards cleaner transport.
Why is the government increasing vehicle duty?
The increases form part of Jersey’s wider Carbon Neutral Roadmap, which established a policy of progressively increasing vehicle duty for standard non-commercial petrol and diesel vehicles, including hybrids.
The policy is intended to discourage the registration of more polluting vehicles as the island works towards its climate objectives.
The government has said that the additional revenue generated by the 2026 changes will go into the Climate Emergency Fund, linking the tax increases to its wider environmental commitments.
However, the changes may also affect household budgets, particularly for motorists who need larger vehicles or cannot readily afford to replace an existing car with a lower-emission alternative.
Is a new annual car ownership tax coming?
A separate vehicle ownership charge has been discussed as a possible way of replacing revenue lost as motorists increasingly move away from petrol and diesel vehicles.
Fuel duty currently provides income for public services and transport-related spending. As the transition to electric vehicles reduces petrol and diesel consumption, the government expects receipts from fuel duty to decline over time.
A vehicle ownership charge or a road-user charge has been considered as a possible alternative source of revenue.
However, the 2026 Budget did not introduce either charge. In its subsequent proposals for 2027, the government said it would begin policy development work in 2027, with a focus on a vehicle ownership charge. This is an unjust tax and will only push the cost of living even higher.
This means that a separate annual tax on owning a car should not be confused with the VED increases already set out for 2026. The eventual design, cost and implementation of any future ownership charge would depend on further policy development.
What does this mean for Jersey drivers?
For motorists registering a vehicle in 2026, the immediate impact depends on the vehicle’s emissions category and the applicable duty rate.
Those registering higher-emission vehicles face the steepest increases, while the rise for lower-emission vehicles is considerably smaller. The published rates also preserve the exemption for zero-emission vehicles.
The policy nevertheless raises broader questions about the cost of motoring in Jersey, including how future transport charges might affect residents who depend on private vehicles for work, family commitments and everyday travel.
Any future ownership charge could have implications beyond the initial cost of registering a car, depending on whether it is designed as an annual payment, a mileage-based charge or another form of road-use taxation. No final structure for such a charge has been established in the cited budget proposals.
For now, the immediate change is an increase in existing vehicle registration duty rather than the introduction of a new annual car tax.
As Jersey continues to pursue its climate commitments and considers how to replace declining fuel-duty income, motorists will be watching closely for further announcements about the future cost of owning and using a vehicle on the island.
Sources for publication
Government of Jersey — Budget 2026–2029 , including the vehicle emissions duty rates and Climate Emergency Fund allocation.
States Assembly — 2027 Budget proposals (P.73/2026) , setting out the proposed next steps on a possible vehicle ownership charge.
P.73/2026
Editorial note: The article distinguishes confirmed 2026 duty changes from a possible future ownership charge. The figures quoted are the published rates for standard vehicles and do not represent an annual tax on existing car ownership.
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