How car tax is worked out
Vehicle excise duty (VED), usually called car tax or road tax, depends on when a car was first registered. There are three systems.
Cars registered on or after 1 April 2017
The first payment, made when the car is new, depends on CO2 emissions. From the second year, almost every car pays the same standard rate of £200 a year. Cars with a list price over £40,000 (or over £50,000 for electric cars registered from April 2026) also pay an expensive car supplement of £440 a year for five years, from the second payment, making £640.
| CO2 (g/km) | Petrol, RDE2 diesel, hybrid, electric | Other diesel |
|---|---|---|
| 0 | £10 | £10 |
| 1 to 50 | £115 | £135 |
| 51 to 75 | £135 | £280 |
| 76 to 90 | £280 | £365 |
| 91 to 100 | £365 | £405 |
| 101 to 110 | £405 | £455 |
| 111 to 130 | £455 | £560 |
| 131 to 150 | £560 | £1,410 |
| 151 to 170 | £1,410 | £2,270 |
| 171 to 190 | £2,270 | £3,420 |
| 191 to 225 | £3,420 | £4,850 |
| 226 to 255 | £4,850 | £5,690 |
| Over 255 | £5,690 | £5,690 |
First-year rates from 1 April 2026. Standard rate from the second year: £200. With the expensive car supplement: £640.
Cars registered between 1 March 2001 and 31 March 2017
These cars pay every year by CO2 band, from A to M.
| Band | CO2 (g/km) | 12 months |
|---|---|---|
| A | Up to 100 | £20 |
| B | 101 to 110 | £20 |
| C | 111 to 120 | £35 |
| D | 121 to 130 | £170 |
| E | 131 to 140 | £200 |
| F | 141 to 150 | £225 |
| G | 151 to 165 | £275 |
| H | 166 to 175 | £325 |
| I | 176 to 185 | £360 |
| J | 186 to 200 | £410 |
| K | 201 to 225 | £445 |
| L | 226 to 255 | £760 |
| M | Over 255 | £790 |
Bands L and M only apply to cars registered on or after 23 March 2006. Cars over 225g/km registered before that date pay the band K rate.
Cars registered before 1 March 2001
Tax depends on engine size: £230 a year for engines up to 1,549cc and £375 above that. Cars made more than 40 years ago can be registered in the historic vehicle class and pay nothing, though they still need to be taxed.
Paying monthly or every six months
Paying by 12 monthly Direct Debits adds 5%: the £200 standard rate becomes £210 a year. Six-month payments also cost slightly more overall than paying for a year at once.
Electric cars and car tax
Electric cars have paid car tax since 1 April 2025. A new electric car pays £10 in its first year and £200 a year after that. Electric cars registered between April 2017 and March 2025 pay the £200 standard rate, and those registered between March 2001 and March 2017 pay £20. The government has also announced a pay-per-mile charge for electric and plug-in hybrid cars from April 2028, on top of VED.
Sources
- GOV.UK: Vehicle tax rate tables
- GOV.UK: Rates for cars registered before 1 March 2001
- Auto Trader: Car tax rates from 1 April 2026
Rates and rules last checked 15 October 2026. These figures are a guide. For a decision that matters, confirm with the official source.