Introduction to UK Car Tax Bands
In the UK, the amount of Vehicle Excise Duty (VED) – commonly known as car tax or road tax – that you pay is primarily determined by your vehicle's CO2 emissions. This emissions-based system was introduced to encourage the purchase and use of more environmentally friendly vehicles.
Understanding how these tax bands work is essential for anyone who owns or is planning to buy a vehicle in the UK. This guide will explain the current car tax band system, how it affects different types of vehicles, and what you need to know to calculate your tax liability.
The UK Car Tax System: An Overview
The UK car tax system has undergone several changes over the years, with the most significant reforms occurring in 2001, 2017, and more changes planned for 2025. Currently, there are three main systems in operation, depending on when your vehicle was first registered:
- Vehicles registered on or after April 1, 2017
- Vehicles registered between March 1, 2001, and March 31, 2017
- Vehicles registered before March 1, 2001
Each system has its own set of tax bands and rates, with the newer systems generally placing a greater emphasis on emissions.
Tax Bands for Vehicles Registered After April 1, 2017
For vehicles registered after April 1, 2017, the tax system consists of two parts:
- A first-year rate based on CO2 emissions
- A standard rate for subsequent years
First-Year Rates
The first-year rate is essentially a tax on the environmental impact of your new vehicle. The higher the CO2 emissions, the higher the tax. This is designed to incentivize the purchase of lower-emission vehicles.
| CO2 Emissions (g/km) | Petrol & RDE2 Diesel | Non-RDE2 Diesel | Alternative Fuel |
|---|---|---|---|
| 0 | £0 | £0 | £0 |
| 1-50 | £10 | £30 | £0 |
| 51-75 | £30 | £135 | £20 |
| 76-90 | £135 | £175 | £125 |
| 91-100 | £175 | £195 | £165 |
| 101-110 | £195 | £220 | £185 |
| 111-130 | £220 | £270 | £210 |
| 131-150 | £270 | £680 | £260 |
| 151-170 | £680 | £1,095 | £670 |
| 171-190 | £1,095 | £1,650 | £1,085 |
| 191-225 | £1,650 | £2,340 | £1,640 |
| 226-255 | £2,340 | £2,745 | £2,330 |
| Over 255 | £2,745 | £2,745 | £2,735 |
What is RDE2?
RDE2 (Real Driving Emissions Step 2) is a standard that measures a diesel vehicle's nitrogen oxide (NOx) emissions in real-world driving conditions. Diesel cars that meet this standard are taxed at the same rate as petrol cars, while those that don't meet it pay a higher rate.
Standard Rates (Second Year Onwards)
After the first year, most vehicles move to a standard rate regardless of their CO2 emissions. For the 2024-25 tax year, these rates are:
| Fuel Type | Annual Rate |
|---|---|
| Petrol or Diesel | £190 |
| Electric | £0 (until April 2025) |
| Alternative Fuel (e.g., hybrids) | £180 |
The Expensive Car Supplement
There's an additional charge for vehicles with a list price (the published price before any discounts) over £40,000. This supplement is:
- £410 per year for five years (from the second time the vehicle is taxed)
- Currently, zero-emission vehicles (electric cars) are exempt from this supplement, but this will change from April 2025
This means that owners of expensive petrol or diesel cars pay a total of £600 per year (£190 standard rate + £410 supplement) for five years.
Tax Bands for Vehicles Registered Between March 1, 2001, and March 31, 2017
For vehicles registered in this period, the tax is based entirely on CO2 emissions, with 13 bands (A to M). Unlike the newer system, there's no separate first-year rate – the same rate applies every year.
| Band | CO2 Emissions (g/km) | Annual Rate (Petrol & Diesel) | Annual Rate (Alternative Fuel) |
|---|---|---|---|
| A | Up to 100 | £0 | £0 |
| B | 101-110 | £20 | £10 |
| C | 111-120 | £35 | £25 |
| D | 121-130 | £160 | £150 |
| E | 131-140 | £190 | £180 |
| F | 141-150 | £210 | £200 |
| G | 151-165 | £255 | £245 |
| H | 166-175 | £305 | £295 |
| I | 176-185 | £335 | £325 |
| J | 186-200 | £385 | £375 |
| K* | 201-225 | £415 | £405 |
| L | 226-255 | £710 | £700 |
| M | Over 255 | £735 | £725 |
*Band K also includes cars with a CO2 figure over 225g/km but registered before March 23, 2006.
Tax Bands for Vehicles Registered Before March 1, 2001
For these older vehicles, the tax is based on engine size rather than emissions:
| Engine Size | Annual Rate |
|---|---|
| 1549cc or less | £210 |
| Over 1549cc | £345 |
How to Find Your Vehicle's CO2 Emissions
To determine which tax band your vehicle falls into, you need to know its CO2 emissions. You can find this information in several places:
- Your vehicle's V5C registration document (logbook)
- The vehicle manufacturer's website or brochure
- The DVLA vehicle enquiry service (online)
- Our car tax calculator, which can look up your vehicle's details using just the registration number
Exemptions and Discounts
Some vehicles are exempt from car tax or eligible for discounts:
- Electric vehicles: Currently exempt from car tax (until April 2025)
- Historic vehicles: Vehicles built before January 1, 1984 (or over 40 years old) are exempt
- Disabled drivers: May be eligible for exemption under certain conditions
- Alternative fuel vehicles: Receive a £10 discount on the standard rates
Important Changes Coming in 2025
From April 2025, electric vehicles will no longer be exempt from car tax. They will pay the standard rate of £195 per year (for vehicles registered after April 1, 2017), and the expensive car supplement will also apply to electric vehicles over £40,000.
Payment Options
You can pay your car tax in several ways:
- Annual payment: Pay for 12 months in one go
- Six-monthly payments: Pay for 6 months at a time (with a small premium)
- Monthly Direct Debit: Spread the cost over 12 months (with a small premium)
The DVLA will send you a reminder (V11) when your tax is due for renewal, or you can set up automatic renewals with Direct Debit.
Conclusion
Understanding the UK car tax bands is essential for budgeting your vehicle running costs. The system is designed to reward lower-emission vehicles with lower tax rates, particularly in the first year of registration for newer vehicles.
With significant changes coming in 2025, particularly for electric vehicle owners, it's important to stay informed about how these changes might affect you. Our car tax calculator can help you determine exactly how much you'll need to pay based on your specific vehicle.
Remember that car tax is a legal requirement for vehicles used or kept on public roads in the UK. Failure to pay can result in penalties, so make sure you keep your tax up to date.