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flag Starting Jan. 1, 2026, vehicle excise taxes will rise for large vehicles and fall for fuel-efficient ones to meet climate goals.

flag The federal government has announced a change to vehicle excise taxes affecting millions of drivers, effective January 1, 2026. flag The update modifies how fuel efficiency and vehicle weight are factored into tax calculations, aiming to encourage the purchase of lower-emission vehicles. flag While specific rates vary by vehicle type, the adjustment is expected to increase taxes for larger vehicles and reduce them for smaller, more fuel-efficient models. flag The IRS confirmed the change is part of a broader effort to align transportation taxes with climate goals, though details on individual impacts remain under review.

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