At a glance
To drive a car in the UK you’ll usually have to pay Vehicle Excise Duty (VED) – and you can be fined if you don’t pay. Here’s a quick summary:
How much VED you pay will depend on when your vehicle was first registered
Since 2001, to encourage drivers to choose more environmentally friendly cars, road tax has been based on CO2 emissions for newly registered vehicles
Some cars, such as disabled vehicles, are exempt from VED, but you’ll still have to apply for road tax and claim an exemption
If you pay your VED six-monthly, or monthly by direct debit, you will pay a small surcharge.
What is car tax?
Car tax is the Vehicle Excise Duty (VED) levied on almost all vehicles by central government.
Since 2001, all cars have been charged a rate of road tax from when they’re first registered. This is based on their CO2 emissions to encourage drivers to choose more environmentally friendly vehicles.
From April 2025, new and existing electric cars, vans and motorcycles began to pay VED in the same way as petrol and diesel vehicles.
The aim of this was to make sure all road users pay a fair tax contribution as the take-up of electric vehicles continues to accelerate.
Depending on how you pay it, your car tax will need to be renewed every six to 12 months.
Did you know?
Although it’s commonly known as car tax, VED isn’t actually a tax on cars. Instead, it’s a tax on the use of vehicles on public roads. The Roads Act 1920 specified that the money raised from VED was to be used exclusively to fund road construction and maintenance.
However, since 1937, the proceeds from VED have been going into the Treasury fund and used as a general revenue-raising tax.
How is car tax calculated?
How car tax is worked out depends on when your vehicle was first registered.
For vehicles registered on or after 1 April 2017, road tax is based on CO2 emissions and price. A different first-year new car rate is paid for the first year of a car’s lifecycle at the point of registration
For vehicles registered between 2001 and 2017, road tax is based on CO2 emissions only
For vehicles registered before 2001, the car tax rate is based on engine capacity (cc) alone.
How is car tax monitored?
The DVLA holds information about car tax on a national database.
The police monitor the car tax status of vehicles by using a network of Automatic Number Plate Recognition (ANPR) cameras. These cameras are located on the roadside or inside police vehicles.
ANPR cameras are linked to the DVLA database so that checks can be made quickly.
Why do I have to pay car tax?
The revenue from VED helps to fund essential areas of government spending that should benefit everyone.
The DVLA Annual Report 2024/2025 recorded £8.4 billion in VED revenue. This money, together with other forms of tax, is used for road improvements and infrastructure, and in other areas such as health and education.
What are the current UK car tax bands?
Since April 2018, cars have fallen into different road tax categories, depending on when they were first registered as a brand-new vehicle. If you opt to pay in instalments, it will also cost you a little more.
The current tax band rates are as follows:
Cars first registered from 1 April 2017
Petrol cars, and diesel cars that meet certain emission standards, first registered on or after 1 April 2017 pay a first-year rate based on the vehicle’s CO2 emissions.
This is shown in the table. They then pay a standard annual rate of £200 (2026-27 tax year) from year two onwards.
First-year payments (2026-27 tax year)
CO2 emissions | Petrol cars and diesel cars that meet the RDE2 standard | All other diesel cars |
|---|---|---|
0g/km | £10 | £10 |
1 to 50g/km | £115 | £135 |
51 to 75g/km | £135 | £280 |
76 to 90g/km | £280 | £365 |
91 to 100g/km | £365 | £405 |
101 to 110g/km | £405 | £455 |
111 to 130g/km | £455 | £560 |
131 to 150g/km | £560 | £1,410 |
151 to 170g/km | £1,410 | £2,270 |
171 to 190g/km | £2,270 | £3,420 |
191 to 225g/km | £3,420 | £4,850 |
226 to 255g/km | £4,850 | £5,690 |
Over 255g/km | £5,690 | £5,690 |
All diesel cars first registered from 1 April 2018 have to pay additional road tax in the first year, unless they meet the Real Driving Emissions 2 standard for nitrogen oxide emissions (RDE2). You can ask your car’s manufacturer if your car meets the RDE2 standard.
New diesel vehicles registered after 1 April 2018 that don’t meet RDE2 will be charged a supplement on their first-year rate to the effect of moving up by one VED band.
Standard VED rates
Standard rates for second tax payment onwards (for cars registered after 2017 under £40,000 list price)
Fuel type | 12-month payment, tax year 2026-271 |
|---|---|
Petrol or diesel | £200 |
Electric | £200 |
Rates for second tax payment for years two to six for expensive cars (for cars registered after 2017 with a list price of £40,000+ - total including the additional rate)
Fuel type | 12-month payment, tax year 2026-271 |
|---|---|
Petrol or diesel | £640 |
Electric | £640 |
1 If you pay in six-monthly or monthly instalments by direct debit you may have to pay more.
Expensive cars
As of April 2018, VED for cars first registered after 1 April 2017 are not only based on CO2 emissions but also the vehicle’s value when bought new.
Vehicles with a list price of £40,000 or more have to pay a supplement for the first five years. This is is from the second time the vehicle is taxed and cost £640 from April 2026.
For owners of zero-emission electric vehicles, the Expensive Car Supplement threshold (ECS) has increased from £40,000 to £50,000.
Cars with zero emissions that cost more than £40,000 but no more than £50,000 won’t have to pay the extra ECS charge when renewing their licence from 1 April 2026 onwards (as long as it’s not their first licence).
It’s the value of the vehicle when bought new that counts. So, if you buy a car second-hand that’s under six years old for less than £40,000 but its original list price was more than £40,000, you’ll have to pay the additional VED.
Alternative fuel vehicles (AFVs) currently pay £10 less in the first year, then a standard annual rate of £180 from year two onwards. Alternative fuelled vehicles include hybrids, bioethanol and liquid petroleum gas (LPG) cars.
2. Cars first registered between 1 March 2001 and 31 March 2017
Depending on the amount of CO2 they emit, cars will fall into one of 13 tax bands lettered from A (less than 100 g/km) to M (more than 255 g/km). So, a car in band A will pay £20, while a car in band M will pay an annual VED rate of £790 for a single 12-month payment.
Alternative fuel cars (hybrids, plug-in hybrids, LPG, CNG, biofuel) that fall into bands A to M pay £10 less than petrol or diesel models in the same band.
Cars first registered before 23 March 2006 will pay a maximum cap of £445 even if they emit more than 225 g/km of CO2 for a 12-month annual payment.
Petrol and diesel cars
Band and CO2 emission | Single 12-month payment, tax year 2026-20272 |
|---|---|
A: Up to 100g/km | £20 |
B: 101 to 110g/km | £20 |
C: 111 to 120g/km | £35 |
D: 121 to 130g/km | £170 |
E: 131 to 140g/km | £200 |
F: 141 to 150g/km | £225 |
G: 151 to 165g/km | £275 |
H: 166 to 175g/km | £325 |
I: 176 to 185g/km | £360 |
J: 186 to 200g/km | £410 |
K3: 201 to 225g/km | £445 |
L: 226 to 255g/km | £760 |
M: Over 255g/km | £790 |
2If you pay six-monthly or in monthly instalments by direct debit you may have to pay more.
3Band K includes cars with a CO2 figure over 225g/km but registered before 23 March 2006.
You can check what car tax band your vehicle falls into by looking at CO2 emission details shown on the car’s V5C registration certificate. Or you can find your vehicle's emission details on GOV.UK. You’ll need to know when your car was first registered and the exact model.
3. Cars first registered before 1 March 2001
These older cars (private vehicles or light goods vehicles) will be charged a standard VED rate based on the size of their engine, how the payment is made and whether it’s for six or 12 months:
Engine size (cc) | Single 12 month payment, tax year 2026-27 |
|---|---|
Not over 1549 | £230 |
Over 1549 | £375 |
Changes to VED from April 2026
In April 2026, Vehicle Excise Duty rates increased. Here’s a breakdown of all the changes.
Changes to VED for electric cars from April 2026
Electric cars, vans and motorcycles have paid VED in the same way as petrol and diesel vehicles since April 2025. This means:
New zero-emission cars registered on or after 1 April 2025 will need to pay the lowest first year rate of VED (which applies to vehicles with CO2 emissions 1 to 50g/km) – currently £10 a year
From the second year of registration onwards, newly registered cars will move to the standard rate – £200 a year
Zero-emission cars first registered between 1 April 2017 and 31 March 2025 will pay the standard rate
New zero-emission cars with a list price of more than £50,000 registered on or after 1 April 2026 will be liable for the Expensive Car Supplement for five years
Zero and low-emission cars first registered between 1 March 2001 and 30 March 2017 currently in Band A will pay a charge of £20.
Changes to VED hybrid and alternatively fuelled vehicles (AFVs) from April 2026
The £10 annual discount for hybrid and AFVs has been removed since 1 April 2025, and the rate you will pay will depend on when the vehicle was first registered:
Vehicles registered before 1 April 2017 – the rate will depend on the vehicle’s CO2 emissions (check the current rates for these vehicles)
Vehicles registered on or after 1 April 2017 – you will pay the standard rate (this will be £200).
VED rates for motorbikes from April 2026
Vehicle Excise Duty bands and rates for motorcycles
Engine size | Tax year 2026-2027 |
|---|---|
Not over 150cc | £27 |
151cc to 400cc | £59 |
401cc to 600cc | £90 |
Over 600cc | £125 |
Vehicle Excise Duty bands and rates for motor tricycles
Engine size | Tax year 2026-2027 |
|---|---|
Not over 150cc | £27 |
All other tricycles | £125 |
VED rates for vans from April 2026
Zero-emission vans moved to the rate for petrol and diesel light goods vehicles since April 2025.
Vehicle Excise Duty bands and rates for vans registered on or after 1 March 2001
Vehicle registration date | Tax year 2026-2027 |
|---|---|
Early Euro 4 and Euro 5 compliant vans | £140 |
All other vans | £360 |
Vehicle Excise Duty bands and rates for vans registered before 1 March 2001
Engine size | Tax year 2026-2027 |
|---|---|
1549cc and below | £230 |
Above 1549cc | £375 |
Which tax band is my car by reg?
You can use your registration number to check which car tax band your car is in, using the government’s Vehicle Enquiry Service. You’ll need the latest 11 digit reference number from the V5C registration certificate (logbook).
The Vehicle Certification Agency will help you find the tax rate for either a new or used car, but you’ll need to know the CO2 emissions from the log book. If the car is a Plug-In Hybrid Electric Vehicle (PHEV), you’ll need the WLTP ‘Weighted’ CO2 figure. For any other type of car, you’ll need the WLTP CO2 figure.
If you’re buying a used or new car, the previous owner or the dealer should also be able to help you.
Did you know?
For each £1 of gross VED collected, the cost of collection is just over 1p. And 98.7% of vehicles on the road were taxed correctly, according to the latest official estimates.
What cars are exempt from paying VED?
Vehicles exempt from paying VED include:
Agricultural vehicles, such as tractors
Electric heavy goods vehicles that weigh over 3,500kg
Disabled vehicles, if the registered disabled person is eligible for vehicle tax exemption
Disabled passenger vehicles used by organisations providing transport for disabled people
Classic vehicles – if your vehicle is more than 40 years old, it will be considered a classic car and will be exempt from paying VED
Vehicles that have been taken off the road and have a Statutory Off Road Notification (SORN).
Just remember, even if your vehicle is exempt and you don’t have to pay anything, you still have to apply for road tax and, where necessary, claim an exemption from paying. For more details see the rules on VED exemptions on GOV.UK.
Who is exempt from paying VED?
You can apply for exemption from paying vehicle tax if you get the:
Higher rate mobility component of Disability Living Allowance (DLA)
Enhanced rate mobility component of Personal Independence Payment (PIP)
Enhanced rate mobility component of Adult Disability Payment (ADP)
Higher rate mobility component of Child Disability Payment
War Pensioners’ Mobility Supplement
Armed Forces Independence Payment.
The vehicle must be registered in the disabled person’s name or their nominated driver’s name. It can only be used for the disabled person’s personal needs. It can’t be used by the nominated driver for their own personal use.
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FAQs
How do I pay my car tax?
You can pay your car tax online at GOV.UK or at your local Post Office. Taxing a vehicle online is much quicker and the service is available 24/7. Using the online service, you can pay by debit or credit card, or direct debit.
To tax a car, you’ll need a reference number from either:
A recent reminder (V11) from the DVLA
Your vehicle’s V5C log book
The green new keeper’s slip (V5C/2) from your logbook, if you’ve just bought the car.
If you’re paying at the Post Office and your car is more than three years old, you’ll also need a valid MOT certificate.
You have to tax your vehicle even if you don’t have to pay anything for it, for example if you’re exempt because you’re disabled.
How often do I need to pay my car tax?
Your car tax is valid for 12 months, so you’ll need to pay it each year. You could also spread the cost by paying monthly, six-monthly or by annual direct debit. Just be aware there’s a surcharge if you pay monthly or every six months.
What happens if I don’t tax my car?
If you don’t tax your car, you could be issued with a Late Licensing Penalty (LLP) and an £80 penalty, reduced to £40 if paid within 33 days.
If you drive an untaxed vehicle without a SORN, you’ll be issued with an Out of Court Settlement (OCS) letter. This comes with a £30 fine plus one-and-a-half times the outstanding car tax rate. If you don’t pay the fine and the case goes to court you could be fined £1,000 or five times the amount of tax chargeable, whichever is greater.
If you’re caught driving an untaxed vehicle with a SORN in place you could be issued an OCS letter with a £30 fine plus one-and-a-half times the outstanding car tax rate. If you don’t pay the fine and the case goes to court, the penalty increases to £2,500 or five times the amount of tax chargeable, whichever is greater.
Your vehicle may also be clamped and additional fees may apply.
How can I check if my car is taxed?
You can check if your vehicle tax is up to date and when it expires using the DVLA’s vehicle enquiry service. All you need is your car’s registration number.
Why is my car tax so high?
The CO2 emissions and the value of your car could push you into a higher tax band. Cars with lower emissions are cheaper to tax. Older, more polluting cars can be more expensive to tax.
If you buy a car with a list price over £40,000, you’ll also need to pay a VED supplement on top of the standard rate for five years.
Should I choose a low-tax car?
It could certainly help your running costs if you choose a low-tax car. Cars that are cheaper to tax may also hold their value better, but that’s not guaranteed.
Electric cars are typically at the lower end of the VED scale, potentially helping to make running costs cheaper. Unless you choose an EV costing more than £40,000 and have to pay the additional Expensive Car rate.
If you don’t want to stretch to a brand-new electric model, there are plenty of petrol and diesels that fall into the low car tax bands.
So, if you’re buying a new or second-hand car it may be sensible to check VED rates before you make a final decision.
What happens to my car tax if I sell my car?
You’ll need to cancel your vehicle tax and tell the DVLA you’ve sold the car. You should apply to get a car tax refund for any full months of remaining tax.
You can’t transfer any remaining car tax to the new owner.
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