Car tax explained: check new rules and rates – Which? – which.co.uk
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The 2024 Autumn Budget revealed the car tax rates for all owners from 1 April 2025.
Here's what you need to know about the vehicle tax rates and rules, and what you'll pay now and in future.
EV and PHEV tax announced: find out how it will affect running costs
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The rules apply to all cars first registered after 1 April 2017.
Below we explain the post-2017 rules in more detail, or you can skip straight to the table of car tax rates.
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The main rates for cars registered as new after 1 April 2017:
These are the current car tax rates, which apply to cars first registered on or after 1 April 2017.
* Assumes single payment for the whole year
After the first year, owners of cars with a list price (excluding any discounts) of more than £40,000 have to pay an additional annual supplement of £425 five years. This will continue to apply even if you buy a used car that had a new list price of more than £40,000
Here's what you'll pay for a car costing more than £40,000 during years two to six.
Electric cars (and hydrogen fuel-cell cars) were previously exempt from tax, but as we explain below, that's changed.
Electric cars first registered on or after 1 April 2025: You'll pay the lowest rate of tax, currently £10. From the second year, the standard rate kicks in and you'll need to pay £195 a year, the same as petrol and diesel owners pay now (if they have a car first registered after 1 April 2017). If your electric car cost £40,000 or more when new, the expensive car supplement will be added to the standard rate for five years.
Electric cars first registered between 1 April 2017 and 31 March 2025: You'll pay £195 per year from April 2025. The £40,000 expensive car supplement is not backdated, so an electric car first registered in 2024 will not attract the supplementary rate of £410 on top of the standard rate.
Electric cars first registered between 1 March 2001 and 31 March 2017: You'll pay the band A rate as listed below, which is £20 a year for the 2025/26 tax year.
The rates used to be slightly different for owners of alternative-fuel cars, although this ended on 1 April 2025 when the rates were equalised.
Alternative-fuel cars, which don't run purely on diesel or petrol, include:
Most cars first registered as new after 1 March 2001, but before 1 April 2017, continue to be taxed at their previous, respective rates, which usually rise in line with official inflation figures each year. These are based on official CO2 emissions.
The amount of CO2 your car produces puts it into one of 13 bands, which are assigned letters A to M.
Band K includes cars that have a CO2 figure of more than 225g/km but were registered before 23 March 2006. Annual rate after the first year assumes single payment for the whole year. You can choose to set up a direct debit to pay monthly, or pay a single payment every six months. If you choose either of these options, you will pay more compared with a single payment for 12 months.
Alternative-fuel cars registered between 1 April 2017 and 31 March 2025 will pay the same £195 rate as petrol and diesel cars.
Alternative-fuel cars registered between 1 March 2001 and 31 March 2017 will pay £20 a year.
Cars registered before this date are charged based on their engine size. Those with engines smaller or equal to 1,549cc pay £220 a year, and those with larger engines pay £360 a year.
A rolling 40-year car tax exemption for classic vehicles applies from 1 April 2015. It means any vehicle built 40 or more years ago will be exempt from car tax on an automatic rolling basis on 1 April each year.
If you're deciding between a petrol or a diesel car, our guide to petrol vs diesel cars will tell you which will cost you less.
The rate of car tax you'll pay is based on the date the car was first registered.
This date doesn't alter with subsequent owners. A car bought new and registered on 1 July 2016 then sold to someone else on 1 August 2017, will always have a first registration date of 1 July 2016.
You can find this date in your car's V5C document (proof of ownership document) but the easiest way to check is to visit the DVLA's 'get vehicle information' service and enter your registration.
This free service also shows other useful information, such as when the MOT is due to expire and the car's European emission status (eg Euro 6).
Arguably the easiest way is to set up a direct debit. You can make annual, six-monthly or monthly payments; there is a 5% surcharge for paying every six months or monthly.
It's easy to pay your car tax online on the government's website.
Alternatively, you can pay by cash, debit or credit card, cheque or postal order in some post offices. If so, you will need to bring one of the following:
In addition to one of the documents above, you also need to bring:
If you live in Northern Ireland, you’ll also need a valid paper copy of either your current certificate of insurance or a cover note.
Anyone in the UK can phone the DVLA to pay for car tax on 0300 123 4321.
If you are disabled and claim certain benefits, you can register for a reduction or exemption from car tax, but only for one vehicle you use. You can claim the exemption by visiting a Post Office branch although to get a reduction needs to be done by post.
If you don't pay your car tax, initially you'll get a letter accompanied by an £80 fine (halved if you pay within 28 days).
If you continue not to pay, that could rise to £1,000 (or five times the due car tax, whichever is greater) – plus court fees should it go to court. It's illegal to drive without car tax, and the police can issue you a fixed penalty notice (FPN) and seize your car.
Road tax per se doesn't exist, as car tax goes towards more than just the upkeep of roads. However, understandably, a lot of people search for it when they're looking for car/vehicle tax or, to use its official name, vehicle excise duty (VED).
The UK government website commonly refers to vehicle tax.
Now you're up-to-date with the new car tax rules, go to our car reviews for our independent test results and expert research.
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