Car Tax Bands Explained: How Much Road Tax Will You Pay?

Summary

• Post-April 2017: Most cars pay a flat rate of £190/year (first year varies).
• Pre-April 2017: Tax is based on CO2 emissions bands (£0-600+).
• Electric vehicles: Currently £0 (changing from April 2025).
• Expensive car supplement: Cars over £40,000 new pay an extra £410/year for 5 years.

Road tax (officially called Vehicle Excise Duty or VED) is a legal requirement for most vehicles. The amount you pay depends on when your car was registered and its emissions.

This guide explains the tax bands in simple terms.

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Two Tax Systems

The UK has two different road tax systems depending on when your car was first registered:

• Before 1 April 2017: Tax based on CO2 emissions bands (A-M)
• From 1 April 2017: Flat rate system (with first-year rate based on emissions)

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Cars Registered After 1 April 2017

First Year Rate

The first year's tax is based on CO2 emissions:

CO2 Emissions (g/km)	Petrol/Diesel
0 (electric)	£0
1-50	£10
51-75	£30
76-90	£135
91-100	£175
101-110	£195
111-130	£220
131-150	£270
151-170	£680
171-190	£1,095
191-225	£1,650
226-255	£2,340
Over 255	£2,745

From Year 2 Onwards

After the first year, most cars pay a flat rate:

• Petrol and diesel: £190/year
• Electric: £0/year (until April 2025)
• Alternative fuel (hybrid): £180/year

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Expensive Car Supplement

If your car had a list price over £40,000 when new, you pay an additional £410/year for the first 5 years (years 2-6 of ownership).

This applies even if you bought it second-hand for less than £40,000. The original list price is what counts.

After 5 years at the standard rate, the supplement ends.

Note: The £40,000 threshold includes optional extras fitted at purchase but excludes the first year's road tax and registration fees.

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Cars Registered Before 1 April 2017

Older cars are taxed based on CO2 bands (A to M):

Band	CO2 (g/km)	Annual Tax
A	Up to 100	£0
B	101-110	£20
C	111-120	£35
D	121-130	£160
E	131-140	£190
F	141-150	£210
G	151-165	£255
H	166-175	£305
I	176-185	£330
J	186-200	£385
K	201-225	£415
L	226-255	£710
M	Over 255	£735

These rates apply every year for the life of the vehicle.

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Electric Vehicles

Currently (2024/25), fully electric vehicles pay £0 road tax.

However, from April 2025:

• New EVs will pay the lowest first-year rate
• From year 2, EVs will pay the standard rate (currently £190)
• EVs over £40,000 will also pay the expensive car supplement

For more on EV costs, see our EV tax benefits guide.

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Historic Vehicles (40+ Years Old)

Vehicles over 40 years old (on a rolling basis) are exempt from road tax. You must still register for tax, but the cost is £0.

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How to Check Your Car's Tax

You can check your vehicle's tax status and rate on GOV.UK using the registration number.

Your V5C (logbook) also shows the CO2 emissions, which determines the tax band for older cars.

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How to Pay Road Tax

You can pay:

• Annually: Full amount in one payment
• Six-monthly: Pay twice a year (5% surcharge)
• Monthly: Direct Debit (5% surcharge)

Set up a Direct Debit and the tax renews automatically - you won't forget.

For more on taxing your car, see our how to tax your car guide.

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Common Questions

Why is my new car's first year tax so high?

First-year tax is based on CO2 emissions. High-emission cars (often larger engines or performance cars) pay significantly more in year one. From year 2, you'll pay the flat rate.

Do I get a refund if I sell my car?

Yes. When you notify DVLA of the sale, you'll get a refund for complete remaining months of tax. The new owner must tax the car themselves.

What happens if I don't pay road tax?

Your car will show as untaxed on ANPR cameras. You could receive a fine, have the car clamped or impounded, and face prosecution.

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Final Thoughts

Understanding car tax bands helps you budget for ownership and make informed buying decisions. Lower-emission cars cost less to tax, which adds up over years of ownership.

When buying a used car, always check the tax band before purchase - especially for older or larger vehicles where tax can be £600+ per year.

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