NEW Car Road Tax Rates and VED Bands: 2024, 2025 & 2026
Confused about different rates of car tax and what you should be paying? Our guide explains everything while our car tax calculator eliminates the guesswork.
Last Updated: 30 October 2024
With the 2024 Autumn Budget held on 30 October 2024, the chancellor Rachel Reeves made changes to the amount of VED car road tax to be paid from April 2025 for the 2025/26 tax year.
While most bands will rise in line with RPI inflation, changes have been made to the first year rates that could mean a bill of almost £5500 for some buyers. More details here.
How much is my road tax?
It's a common assumption that car road tax is a single rate of taxation. In reality, it's become more complicated than that over the past two decades.
While moves have been made to make the system easier to understand and fairer for all, piecemeal changes changes have created four types of taxation, each further broken down into bands.
For cars alone, your could fall into one of four road tax systems:
- Cars registered after 1 April 2017
- Cars registered between 1 March 2001 and 31 March 2017
- Cars registered between 1 January 1984 and 28 February 2001
- Classics cars registered before 1 January 1984
Not only will this guide illustrate the different costs within each car road tax system, our handy calculator below will calculate the cost from your car's registration number.
Is car tax changing in 2025?
Yes there will be significant changes in 2025. Electric vehicles will no longer be exempt from VED from April 2025. The change applies to electric cars, vans and motorcycles.
Currently, EVs are exempt from both the annual standard rate VED and the premium car supplement for new cars with a list price of £40,000 or more.
Under the new rules new zero emission cars registered on or after 1 April 2025 will be liable to pay the lowest first year rate of VED (which applies to vehicles with CO2 emissions of 1g/km to 50g/km) currently £10 a year.
From the second year of registration onwards, they will move to the standard rate.
The government also intends to tax older electric vehicles, with those first registered between 1 April 2017 and 31 March 2025 set to pay the standard rate.
The expensive car supplement exemption for electric vehicles is due to end in 2025. New zero emission cars registered on or after 1 April 2025 will therefore be liable for the expensive car supplement.
Road tax rates for cars registered from 1 April 2017
Since 2017, all new cars have been taxed against three road tax VED bands — Zero, Standard and Premium — with rates calculated using a combination of CO2 emissions and the list price of the vehicle.
| Standard annual rate | £190 |
| Hybrid annual rate | £180 |
Since 2017, all new cars have been taxed against three road tax VED bands — Zero, Standard and Premium — with rates calculated using a combination of CO2 emissions and the list price of the vehicle.
From 1 April 2024, the Standard rate, applicable from the second year of taxation, is £190 for most new cars except hybrids and those running on LPG, where the rate is £180.
Cars with a list price above £40,000 are considered Premium and are subject to pay an additional £410 per year from the second year of taxation, on top of the Standard rate.
In other words, by the time a car that cost £40,001 new is six years old, it will have been subjected to £2050 more in taxation than a similar version of the same model that cost £39,999.
Cars that emit zero CO2 are not currently charged the Premium rate of £410 but that will change in April 2025.
Autumn Budget 2024: Rachel Reeves makes more changes to vehicle excise duty to complicate the road tax system even further
In the Autumn Budget 2024, held on 30 October, Rachel Reeves announced the following changes, which will apply to 2025/26 tax years and take effect in April 2025:
- Standard VED rates to rise in line with RPI inflation.
The government will introduce changes the Vehicle Excise Duty (VED) first year rates for new cars registered on or after 1 April 2025. These are as follows:
- zero emission cars will pay the lowest first year rate at £10 until 2029 to 2030
- rates for cars emitting 1g/km to 50g/km of CO2, including hybrid vehicles, will increase to £110
- rates for cars emitting 51g/km to 75g/km of CO2, including hybrid vehicles, will increase to £130
- all other rates for cars emitting 76g/km of CO2 and above will double from their current level.
Tax year 2024 to 2025
First Year VED road tax rates are only applicable for the first year of a car's registration and cover the 12 months.
| CO2 emissions (g/km) | Standard rate | First year rate |
|---|---|---|
| 0 | 0 | 0 |
| 1 to 50 | 190 | 10 |
| 51 to 75 | 190 | 30 |
| 76 to 90 | 190 | 135 |
| 91 to 100 | 190 | 175 |
| 101 to 110 | 190 | 195 |
| 111 to 130 | 190 | 220 |
| 131 to 150 | 190 | 270 |
| 151 to 170 | 190 | 680 |
| 171 to 190 | 190 | 1,095 |
| 191 to 225 | 190 | 1,650 |
| 226 to 255 | 190 | 2,340 |
| Over 255 | 190 | 2,745 |
Tax year 2025 to 2026
| CO2 emissions (g/km) | Standard rate | First year rate |
|---|---|---|
| 0 | 195 | 10 |
| 1 to 50 | 195 | 110 |
| 51 to 75 | 195 | 130 |
| 76 to 90 | 195 | 270 |
| 91 to 100 | 195 | 350 |
| 101 to 110 | 195 | 390 |
| 111 to 130 | 195 | 440 |
| 131 to 150 | 195 | 540 |
| 151 to 170 | 195 | 1,360 |
| 171 to 190 | 195 | 2,190 |
| 191 to 225 | 195 | 3,300 |
| 226 to 255 | 195 | 4,680 |
| Over 255 | 195 | 5,490 |
Budget 2018 announced that new diesel vehicles registered after 1 April 2018 that do not meet the real driving emission step 2 (RDE2) standard will be charged a supplement on their first year rate to the effect of moving up by one VED band.
Cars with a list price of over £40,000 in the registration year will pay an additional rate of £425 per annum on top of the standard rate, in the second to sixth years after the car’s first registration (known as the Expensive Car Supplement (ECS)).
Premium car tax for models with a list price of £40,000 or more
Effective from 1 April 2024, these are the current 2024/2025 car tax rates, applicable from the second to sixth year of taxation.
| Fuel type | Annual rate* |
|---|---|
| Petrol or diesel | £600 |
| Electric | £0 |
| Alternative fuel cars | £590 |
Crucially, this taxation rate is based on the car's list price, including optional extras, the day before it was first registered.
*The Annual rate figure is inclusive of the Standard rate of car road tax
Was Road Pricing introduced in the Autumn Budget on 30 October 2024?
There has been much talk of road pricing replacing the car road tax VED rates but this is unlikely to be introduced any time soon. The time and cost of implementing a ULEZ style system with cameras across the major road networks is likely to be prohibitively expensive.
A Transport Committee previously hinted at charging motorists to use the busiest motorways so the idea is not a new one.
The government will see revenue from road tax VED decrease by an estimated £13 billion by 2030 as more drivers switch to electric cars, which currently pay no road tax VED. While that's changing in April 2025, the extra revenue won't plug the gap.
There are several ways road pricing could work, from charging all cars to use motorways at peak times to charging different rates depending on emissions or fuel type. Of course the result is likely to be more traffic on quieter, less safe, roads and the creation of 'rat runs'.
There were no road pricing announcements by Rachel Reeves in the Autumn Budget 2024.
Road Tax for electric cars (EVs)
Electric cars qualify for free car tax but this will change on 1 April 2025 when they will be subjected to the Standard rate charge.
The exemption from the Premium rate will also end at the same time. This means electric cars with a list price of £40,000 or more will be charged an extra £410 (at present levels) per year for VED.
The new car tax rules will also affect petrol and diesel cars registered between 1 March 2001 and 31 March 2017.
All cars currently in Band A, which emit less than 100g/km of CO2, will be moved into Band B on 1 April 2025 — a move that will see millions of cars charged VED car tax for the first time.
The car tax discount for hybrid cars and other alternative fuels will also end in 2025.
Road tax for cars registered between 2001 and 2017
If your car was registered between 1 March 2001 and 31 March 2017, you pay VED road tax based solely on its CO2 emissions.
This is a more complex system than the ones before and after it. During its lifespan, this road tax system was modified under several governments. You will need to know your car's CO2 emissions in order to calculate its road tax or you can use the calculator above.
It did, however, create several opportunities for car owners to pay zero or very little road tax. As car manufacturers learned to take advantage of the system, more cars fell into lower bands and this ultimately led to its abolition.
Effective from 1 April 2024, these are the current 2024/2025 car road tax rates, applicable for models first registered between 1 March 2001 and 31 March 2017.
Tax year 2024 to 2025
| Vehicle Excise Duty band | CO2 emissions (g/km) | Standard rate |
|---|---|---|
| A | Up to 100 | 0 |
| B | 101 to 110 | 20 |
| C | 111 to 120 | 35 |
| D | 121 to 130 | 160 |
| E | 131 to 140 | 190 |
| F | 141 to 150 | 210 |
| G | 151 to 165 | 255 |
| H | 166 to 175 | 305 |
| I | 176 to 185 | 335 |
| J | 186 to 200 | 385 |
| K | 201 to 225 | 415 |
| L | 226 to 255 | 710 |
| M | Over 255 | 735 |
Band K includes cars emitting over 225g/km registered before 23 March 2006.
Tax year 2025 to 2026
| Vehicle Excise Duty band | CO2 emissions (g/km) | Standard rate |
|---|---|---|
| A | Up to 100 | 20 |
| B | 101 to 110 | 20 |
| C | 111 to 120 | 35 |
| D | 121 to 130 | 165 |
| E | 131 to 140 | 195 |
| F | 141 to 150 | 215 |
| G | 151 to 165 | 265 |
| H | 166 to 175 | 315 |
| I | 176 to 185 | 345 |
| J | 186 to 200 | 395 |
| K | 201 to 225 | 430 |
| L | 226 to 255 | 735 |
| M | Over 255 | 760 |
Band K includes cars emitting over 225g/km registered before 23 March 2006.
Car tax for models registered between 1984 and 2001
The system for cars registered between 1 January 1984 and 28 February 2001 is based exclusively on engine size. It's simple to understand with just two rates — one for those of 1549cc and below, the other for models of 1550cc and above.
Note that models registered before 1 January 1984 are exempt from paying car tax.
Effective from 1 April 2024, these are the current 2024/2025 car tax rates, applicable for models first registered between 1 January 1984 and 28 February 2001.
Vehicle Excise Duty bands and rates for cars and vans registered before 1 March 2001
| Engine size | Tax year 2023 to 2024 | Tax year 2024 to 2025 | Tax year 2025 to 2026 |
|---|---|---|---|
| 1549cc and below | 200 | 210 | 220 |
| Above 1549cc | 325 | 345 | 360 |
Vehicle Excise Duty bands and rates for vans registered on or after 1 March 2001
| Vehicle registration date | Tax year 2023 to 2024 | Tax year 2024 to 2025 | Tax year 2025 to 2026 |
|---|---|---|---|
| Early Euro 4 and Euro 5 compliant vans | 140 | 140 | 140 |
| All other vans | 320 | 335 | 345 |
Road tax for classic cars over 40 years old
If there's any good news to be had regarding VED car tax it's that classic models first registered at least 40 years ago are exempt from paying it.
At the start of each year, on a rolling basis, the latest possible first registration date to qualify for VED exemption moves forward by twelve months.
For example, for a car to qualify for VED exemption in 2024 it must have been registered before 1 January 1984. However, from the start of 2025, the exemption date will roll forward to cover all models first registered before 1 January 1985.
Is VED the same as road tax and car tax?
VED - which is shorthand for vehicle excise duty - is often called road tax or car tax. It's essentially the duty you have to pay to the government in order to legally drive or park on public roads.
Essentially there's no difference between road tax and car tax, they are just two terms to describe VED. The reason we call it car tax rather than road tax is that the VED you pay doesn't actually directly pay for road maintenance. Rather it goes into a central government fund with other taxes such as council tax.
How to cancel car tax
Unlike the old days when car tax stayed with the vehicle when it was sold on, now it is essentially a contract between you and the DVLA, so as soon as its ownership is transferred, you no longer have to tax it.
That might seem more complicated but it takes the tax element out of buying or selling a car, and also means you don’t have to pay car tax for a car you are not using.
Here's how to cancel car tax and get a refund.
Road tax rates and band by make and model
Latest 2024/25 Road Tax rates and bands for Abarth models
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Latest 2024/25 Road Tax rates and bands for Audi models
Latest 2024/25 Road Tax rates and bands for Bentley models
Latest 2024/25 Road Tax rates and bands for BMW models
Latest 2024/25 Road Tax rates and bands for Citroen models
Latest 2024/25 Road Tax rates and bands for Cupra models
Latest 2024/25 Road Tax rates and bands for Dacia models
Latest 2024/25 Road Tax rates and bands for DS models
Latest 2024/25 Road Tax rates and bands for Fiat models
Latest 2024/25 Road Tax rates and bands for Ford models
Latest 2024/25 Road Tax rates and bands for Honda models
Latest 2024/25 Road Tax rates and bands for Hyundai models
Latest 2024/25 Road Tax rates and bands for Jaguar models
Latest 2024/25 Road Tax rates and bands for Jeep models
Latest 2024/25 Road Tax rates and bands for Kia models
Latest 2024/25 Road Tax rates and bands for Land Rover models
Latest 2024/25 Road Tax rates and bands for Lexus models
Latest 2024/25 Road Tax rates and bands for Mazda models
Latest 2024/25 Road Tax rates and bands for Mercedes-Benz models
Latest 2024/25 Road Tax rates and bands for MG models
Latest 2024/25 Road Tax rates and bands for Nissan models
Latest 2024/25 Road Tax rates and bands for Peugeot models
Latest 2024/25 Road Tax rates and bands for Range Rover models
Latest 2024/25 Road Tax rates and bands for Renault models
Latest 2024/25 Road Tax rates and bands for SEAT models
Latest 2024/25 Road Tax rates and bands for Skoda models
Latest 2024/25 Road Tax rates and bands for Smart models
Latest 2024/25 Road Tax rates and bands for Subaru models
Latest 2024/25 Road Tax rates and bands for Suzuki models
Latest 2024/25 Road Tax rates and bands for Toyota models
Latest 2024/25 Road Tax rates and bands for Vauxhall models
Latest 2024/25 Road Tax rates and bands for Volkswagen models
Latest 2024/25 Road Tax rates and bands for Volvo models
Cars registered from 1 April 2017 are taxed at a flat rate, based on their initial list price.
Cars registered from 1 March 2001 to 31 March 2017 are taxed according to how much CO2 they emit.
Cars registered from 1 January 1984 to 28 February 2001 are taxed on engine size. There are two bands: engines up to and including 1549cc and engines over 1549cc.
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