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Car tax bands and VED road tax
New car tax rates April 2025/2026
Ryan Barham
Last updated: 17/10/2025
Ryan Barham
Last updated: 17/10/2025
The Vehicle Excise Duty (VED) rates for the 2025/2026 financial year were brought in on 1 April, with the standard rate increasing by £5 to £195 a year. This included electric vehicles for the first time.
UK car tax changes can be confusing (it’s worth noting VED and road tax are the same thing), so in this post we’re going to explain everything you need to know about the new car tax rates.
If you’re concerned about your car tax or wondering when it is next due, you can check your vehicle tax on the UK government’s vehicle enquiry service. Visit our How to check if a car is taxed and MOT’d blog post to find more information on how to manage your car tax and MOT reminders.
You’ll need to pay tax for 12 months when you first register a vehicle.
The standard rate for the majority of petrol or diesel, electric and alternative fuel cars is now £195 a year. First-year rates are usually slightly lower and will be based on the vehicle’s CO2 emissions.
If your car was registered before April 2017 or is classed as being a higher-polluting vehicle, you may have to pay more. Vehicles with a list price of more than £40,000 also face an extra £425 a year VED unless they are zero emission or registered before 1 April, 2025.
To find out how much your road tax is going to cost, you’ll need to find out the year of your car’s registration. This is displayed on page one of your V5C logbook.
The first tax payment rates when you register the vehicle are listed below:
CO2 emissionsDiesel cars that meet the RDE2 standard
Petrol cars
Alternative fuel and zero emission carsAll other diesel cars0g/km£10£101 to 50g/km£110£13051 to 75g/km£130£27076 to 90g/km£270£35091 to 100g/km£350£390101 to 110g/km£390£440111 to 130g/km£440£540131 to 150g/km£540£1,360151 to 170g/km£1,360£2,190171 to 190g/km£2,190£3,300191 to 225g/km£3,300£4,680226 to 255g/km£5,490£5,490Over 255g/km£5,490£5,490
Once you’ve made this 12-month payment, you’ll have the choice of the following rates for your second tax payment onwards:
In short, yes but you will have to factor in some considerations including making sure the temporary car insurance policy is active on the day you tax the car. The vehicle must also have a valid MOT if it’s over three years old (four years in Northern Ireland).
You can find out more in our Can you tax a car with temporary insurance? blog post.
Your car tax is based on one of the following, depending on when it was first registered:
If your car was registered on or after 1 April, 2017 it will be taxed against a zero, standard or premium VED band. Cars registered between 1 March 2001 and 31 March 2017 are split into different CO2 bands. The lower the emissions, the lower the vehicle tax.
You’ll need to pay your car tax on an annual (or 6-month) basis. You should receive a letter from the DVLA telling you when it’s due. This is typically sent out around a month before the day you have to renew. If you don’t receive this letter, you can check if a vehicle is taxed on the UK government’s website.
Your car needs insurance to be eligible for tax. We have a blog post that explains how to check if a car has insurance.
The following types of vehicle are exempt from vehicle tax:
It’s illegal to drive a vehicle in the UK without the necessary road tax. If you are caught driving without tax, you could face a fine of up to £1,000.
You need insurance, whether that’s an annual or temporary car insurance policy, to tax your car. When applying for tax, the DVLA checks whether your vehicle has a valid MOT and insurance. If you don’t have both, you won’t be able to tax your car.
If you’re found to be the registered keeper of an untaxed vehicle, you could face an £80 fine. This can be reduced to £40 if paid within 33 days.
Your car could also be clamped and taken to an impound if it is not taxed. This would result in the following fees:
All of the above are subject to conditions, which you can find in the government’s vehicle enforcement policy.
A vehicle is stored in an impound for a statutory period of between 7 and 14 days. If the vehicle is not claimed within this time, it may be disposed of by auction, breaking or crushing. To get a car released from an impound, you will need impound car insurance.
There will also be a surety fee if the keeper has not taxed their vehicle by the time it is released.
This can be refunded if proof of this tax is produced within 14 days of the payment being made.
Yes, owners of older and more polluting vehicles will have to pay more expensive road tax after the rates were increased on 1 April, 2025.
VED rates for vehicles registered between March 1, 2001 and March 31, 2017 are based on CO2 emissions, while vehicles registered on or after 1 April, 2017 have moved up to the standard annual VAT rate of £195.
Inform the DVLA that you have sold or no longer own the car and they’ll be able to issue a refund for any full months left on your vehicle tax. The processing time for this, which can be done online or via telephone, tends to be around six weeks. Find out more on the vehicle tax refund section of gov.uk.
You can pay for your car tax via debit or credit card, or Direct Debit. You must tax your vehicle even if it’s exempt e.g.if you are disabled.
You’ll need a reference number to pay for your car tax. This can be found in:
If you do not have any of these documents, you’ll need to apply for a new log book. You can tax your vehicle at the same time.
You can find more information on the vehicle tax section of the UK government’s website.
Yes, Vehicle Excise Duty is also known as road or car tax. It is the annual tax paid by owners of vehicles registered in the UK.
You can swiftly determine your road tax online or by phoning the Driver and Vehicle Licensing Agency (DVLA). You'll need your vehicle's 11-digit reference number from its logbook. Enter this on the DVLA's website for the required information. Always keep your road tax current to avoid penalties.
To calculate your car tax, refer to your vehicle's V5C registration certificate for fuel type and CO2 emissions. The UK government uses these factors to set tax rates, promoting environmentally friendly vehicles. If unsure, consult the DVLA's website for guidance. Being informed about your vehicle's tax aids in avoiding unexpected costs and effective budgeting.
Vehicle tax is calculated based on your vehicle's age, type, engine size, fuel type, and CO2 emissions. The tax rate varies depending on when your vehicle was first registered, whether it's a new electric car or a vintage petrol vehicle. For accurate information, consult directly with the DVLA.
To determine your car's tax band, you need its registration number and the 11-digit reference from your V5C logbook. This will allow you to access your car's tax status, ensuring you pay the correct amount annually and comply with the law. Regularly checking your car's tax band is crucial for staying informed.
You can check your vehicle's road tax status online using the free car tax check. By entering your registration number, you can access your vehicle's MOT history, mileage at each MOT, details of test failures, and current vehicle recall information. This comprehensive tool keeps you informed about your vehicle's status.
Cars over 25 years old may be exempt from road tax if they meet specific conditions. Check if your vehicle qualifies for exemption on the DVLA's website. Despite possible exemption, you're legally obliged to complete the road tax paperwork.
UK law mandates third-party motor insurance for all cars, irrespective of whether they are being driven or parked on the street, driveway, or garage. Police can instantly verify your vehicle's insurance status using the Motor Insurance Database. Therefore, even with tax, it's illegal to leave your car on the road without insurance.
UK law mandates car insurance before taxing your vehicle. A car can't be taxed without insurance, irrespective of usage duration. Cars under three years old don't require an MOT for taxing. Upon ownership, immediate insurance and tax are compulsory unless a Statutory Off-Road Notification (SORN) is declared. Driving without valid insurance or tax invites severe penalties.
Driving without vehicle tax risks police attention, who use Automatic Number Plate Recognition cameras to cross-check with the DVLA's database. If flagged, you could face fines, impounding of your vehicle, and subsequent release, storage and unpaid tax fees. To avoid this, ensure your vehicle is promptly taxed. Even tax-exempt cars must be registered as taxed on the DVLA website.
Your car tax is calculated based on your vehicle's specifics. For cars registered before 1 April 2017, tax is based on engine size. For those registered after, tax is determined by fuel type and CO2 emissions. The Vehicle Excise Duty (VED) band your car falls into - zero, standard, or premium - will dictate your tax amount.
Starting 1 April 2025, the standard road tax rate will be £195 for all cars registered after 1 April 2017, irrespective of fuel type. Previously, petrol and diesel cars were charged £190, hybrids had a £10 discount, and electric cars were exempt. The new policy simplifies this with a uniform rate.
In the UK, road tax is due on the 1st of the month of your vehicle's renewal, with no 14-day grace period. To obtain a new V5C, apply by post using a form from your local Post Office. Timely payment of road tax is crucial to avoid penalties.
Since the transition to an online system in 2014, there's no grace period for expired road tax. It's essential to keep your road tax current to avoid penalties. You can renew it online quickly and easily. Driving without valid road tax is illegal and could invalidate your car insurance.
Late road tax payments incur an £80 fine from the DVLA, plus charges for the untaxed period. Prompt payment is essential to avoid serious consequences, such as vehicle clamping, crushing, or debt collection agency involvement. Stay on top of your road tax payments to prevent these issues.
Failing to tax your car could result in it being clamped or destroyed. The DVLA will send a reminder when your road tax is due. It's crucial to act promptly upon receiving this notice. Ensure you follow the required steps to tax your car on time, thereby avoiding unpleasant surprises and keeping your vehicle legal and roadworthy.
Your car insurance may remain valid without car tax, but some insurers may require tax as a policy condition, potentially invalidating your insurance without it. It's crucial to read your policy details thoroughly to ensure you meet all requirements.
In the UK, driving without paying vehicle tax can result in a fine of up to £1,000 or five times the due tax, whichever is greater. Additionally, your car may be clamped, incurring further charges for release. Therefore, maintaining vehicle tax payments is crucial to avoid such penalties.
Vehicle tax rates for modern classics registered between 1 March 2001 and 31 March 2017 are emissions-based. Cars emitting less than 100g/km are exempt from tax. However, other vehicles from this period will see a £10 increase compared to 2024. Consult the full list of vehicle tax rates for further details.
From 1 April 2025, new electric cars will be subject to first-year road tax. Fuel-powered cars will also face a significant tax increase. The new tax bands are as follows: £10 for 0g/km emissions (up from £0), and £110 for 1-50g/km emissions (up from £10). This applies to petrol, hybrid, and RDE2-compliant diesel cars.
In the UK, cars or vans manufactured or registered before 1 January 1984 are exempt from road tax, a rule effective since April 1, 2024. This means owners of vehicles at least 40 years old are not required to pay this expense, allowing them to enjoy open roads worry-free.
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Temporary Car InsuranceTempcoverDriving Advice