Your annual Vehicle Excise Duty (VED), commonly known as “car tax” or “road tax,” depends primarily on when your vehicle was first registered and, for newer cars, its carbon-dioxide (CO₂) emissions.
1. What Is Vehicle Excise Duty (VED)?
VED is an annual charge levied on almost all vehicles kept or driven on public roads in the UK. Proceeds go into general Treasury revenues rather than being ring-fenced for roads. Driving, parking on a public road, or keeping a vehicle without paying VED can incur fines of up to £1,000—and invalidates your insurance.
2. Cars Registered On or After 1 April 2017
2.1 First-Year (“Showroom”) Rate
Brand-new cars pay a variable first-year rate tied to CO₂ emissions on their V5C registration certificate:
| CO₂ Emissions (g/km) | First Year VED 2025–26 |
|---|---|
| 0 | £10 |
| 1–50 | £110 |
| 51–75 | £130 |
| 76–90 | £270 |
| 91–100 | £350 |
| 101–110 | £390 |
| 111–130 | £440 |
| 131–150 | £540 |
| 151–170 | £1,360 |
| 171–190 | £2,190 |
| 191–225 | £3,300 |
| 226–255 | £4,680 |
| Over 255 | £5,490 |
2.2 Standard Rate (Years Two Onwards)
From the second year, most petrol, diesel, and alternative-fuel cars pay a flat £195 per year.
Electric and zero-emission cars also pay £195 from year two.
2.3 £40,000+ List-Price Supplement
Cars whose original list price exceeded £40,000 pay a £425 supplement per year for five years, in addition to the standard rate.
3. Cars Registered Between 1 March 2001 and 31 March 2017
These vehicles fall into one of 13 graduated VED bands (A–M) based on CO₂ emissions:
| Band | CO₂ (g/km) | Annual VED |
|---|---|---|
| A | ≤100 | £20 |
| B | 101–110 | £20 |
| C | 111–120 | £35 |
| D | 121–130 | £165 |
| E | 131–140 | £195 |
| F | 141–150 | £215 |
| G | 151–165 | £265 |
| H | 166–175 | £315 |
| I | 176–185 | £345 |
| J | 186–200 | £395 |
| K* | 201–225 | £430 |
| L | 226–255 | £735 |
| M | Over 255 | £760 |
Band K includes cars emitting over 225 g/km but registered before 23 March 2006.
Alternative-fuel vehicles (hybrids, LPG, biofuel) in bands A–M pay £10 less than petrol/diesel counterparts.
4. Cars Registered Before 1 March 2001
Tax is based solely on engine size (cc):
| Engine Size | Annual VED |
|---|---|
| ≤1,549 cc | £200 |
| >1,549 cc | £325 |
5. How to Check and Pay Your Car Tax
- GOV.UK Vehicle Tax Checker: Enter your registration to view your exact VED due and payment options.
Payment Methods:
- 12-month single payment
- 6-month single payment
- Monthly Direct Debit (with small surcharge)
Keep proof of payment in your vehicle; enforcement uses ANPR cameras and DVLA records to detect untaxed vehicles.
6. Exemptions, Discounts, and Penalties
- Exemptions: Zero-emission vehicles, classic cars over 40 years old, and certain disabled vehicles are exempt but must still apply for VED online.
- Failure to tax incurs an initial £80 charge, rising to £100 if unpaid after 28 days; driving untaxed can lead to seizure, clamping, or impounding.
7. Summary of Key Rates
| Registration Period | Basis | First Year | Standard Rate | £40k+ Supplement |
|---|---|---|---|---|
| On/after 1 Apr 2017 | CO₂ emissions | 0–£5,490 bands | £195 | £425 for 5 years |
| 1 Mar 2001–31 Mar 2017 | CO₂ emissions (A–M) | N/A | See Band table | N/A |
| Before 1 Mar 2001 | Engine size (cc) | N/A | £200/£325 | N/A |
Staying informed of your car’s registration date and CO₂ band ensures you pay the correct VED and avoid penalties. Always check GOV.UK for the latest rates before renewing your road tax.
