The short answer
- Most cars registered since April 2017 pay £200 a year from the second year.
- Cars with a list price over £40,000 pay £440 more a year in years 2 to 6, so £640 a year.
- Electric cars pay £10 in the first year and then £200. New electric cars over £50,000 also pay the supplement.
- Cars registered from March 2001 to March 2017 pay between £20 and £790 a year depending on CO2.
What car tax is
Vehicle Excise Duty is a yearly tax on vehicles used or kept on public roads. It is collected by the DVLA and goes to the Treasury. Since 2014 there has been no paper tax disc: the DVLA records your payment against your registration, and cameras check it automatically.
The rate is fixed by the rules that applied when your car was first registered, so two similar cars can pay very different amounts. The rates usually rise each April in line with inflation.
Which system your car is in
- Before March 2001Engine size
Two rates, one for engines up to 1,549cc and one for larger engines.
- March 2001 to March 2017Bands A to M by CO2
The yearly rate depends on emissions for the life of the car.
- April 2017 onwardsFirst-year rate, then a flat rate
CO2 sets only the first-year rate; after that most cars pay the same.
The date of first registration is on your V5C logbook. For imported cars, it is the date the car was first registered anywhere.
The first-year rate
For cars registered from April 2017, the first year’s tax depends on CO2 emissions. It is usually paid by the dealer and built into the price of a new car.
| CO2 (g/km) | Petrol, RDE2 diesel, hybrid | Other diesel |
|---|---|---|
| 0 | £10 | £10 |
| 1 to 50 | £115 | £135 |
| 51 to 75 | £135 | £280 |
| 76 to 90 | £280 | £365 |
| 91 to 100 | £365 | £405 |
| 101 to 110 | £405 | £455 |
| 111 to 130 | £455 | £560 |
| 131 to 150 | £560 | £1,410 |
| 151 to 170 | £1,410 | £2,270 |
| 171 to 190 | £2,270 | £3,420 |
| 191 to 225 | £3,420 | £4,850 |
| 226 to 255 | £4,850 | £5,690 |
| Over 255 | £5,690 | £5,690 |
The standard rate
From the second year, every car registered since April 2017 pays the same standard rate, whatever its emissions: £200 a year from 1 April 2026, up from £195. Petrol, diesel, hybrid and electric cars all pay it.
- First year£455
- Years 2 to 6: £200 × 5£1,000
The expensive car supplement
Cars with a list price over £40,000 pay an extra £440 a year for five years, from the second year to the sixth. The list price is the price when new, including options, not what you paid. A used car that cost £20,000 still pays the supplement if it listed at over £40,000.
- First year£560
- Years 2 to 6: (£200 + £440) × 5£3,200
- From year 7£200 a year
Electric cars
Electric cars were exempt from car tax until April 2025. Now they pay like other cars, with a few differences:
- The first-year rate is £10.
- From the second year, they pay the £200 standard rate.
- For electric cars registered from 1 April 2025, the expensive car supplement starts above £50,000 rather than £40,000.
- Electric cars registered between April 2017 and March 2025 never pay the supplement.
- Electric cars registered between March 2001 and March 2017 pay the band A rate of £20.
Hybrids and diesels
- First year
- Same as petrol, by CO2
- From year 2
- £200, the old £10 discount ended in 2025
- Supplement
- Over £40,000
- RDE2 diesels
- Same first-year rate as petrol
- Other diesels
- One band higher in the first year
- From year 2
- £200, like other cars
RDE2 is a newer emissions test. Most diesel cars sold new since 2021 meet it; the car’s certificate of conformity will say.
Cars registered 2001 to 2017
| Band | CO2 (g/km) | Rate |
|---|---|---|
| A | Up to 100 | £20 |
| B | 101 to 110 | £20 |
| C | 111 to 120 | £35 |
| D | 121 to 130 | £170 |
| E | 131 to 140 | £200 |
| F | 141 to 150 | £225 |
| G | 151 to 165 | £275 |
| H | 166 to 175 | £325 |
| I | 176 to 185 | £360 |
| J | 186 to 200 | £410 |
| K | 201 to 225 | £445 |
| L | 226 to 255 | £760 |
| M | Over 255 | £790 |
Cars in bands A to C can be much cheaper to tax than a new car. Cars over 225 g/km first registered before 23 March 2006 pay the band K rate rather than the band L or M rate.
Paying monthly or every six months
| How you pay | Cost over a year |
|---|---|
| 12 months in one go | £200 |
| Monthly Direct Debit: £17.50 × 12 | £210 |
| Two 6-month payments: £110 × 2 | £220 |
Spreading the cost by monthly Direct Debit adds 5%. Paying for 6 months at a time costs 10% more over the year.
Pay-per-mile from 2028
From April 2028, electric cars are due to pay an Electric Vehicle Excise Duty of 3p a mile, and plug-in hybrids 1.5p a mile, on top of car tax. Drivers will estimate their mileage when they tax the car, and the figure will be checked at the MOT. At 8,000 miles a year, that is about £240 for an electric car and £120 for a plug-in hybrid. The rates are expected to rise with inflation.
Who pays nothing
- Historic vehicles: cars built more than 40 years ago. From 1 April 2026, that means cars built before 1 January 1986.
- Disabled drivers: people getting the higher rate mobility part of Disability Living Allowance, the enhanced mobility part of PIP, and some other benefits.
- Mobility vehicles: cars leased through the Motability scheme.
- Off-road vehicles: cars with a SORN, which cannot be driven or parked on public roads.
You still need to tax an exempt vehicle, but you pay £0.
Buying, selling and refunds
Car tax does not transfer with the car. When you buy a used car, you must tax it before driving it away. When you sell, scrap or SORN a car, the DVLA refunds any full months left. The SORN calculator works out your refund.
Penalties
If your car is untaxed and not SORN, the DVLA can send an £80 late licensing penalty, halved to £40 if paid promptly. Driving untaxed can lead to a court fine of up to £1,000, and the car can be clamped or impounded.
Check before you drive
Tax lapses when a Direct Debit fails or when you buy a car. Use the free GOV.UK vehicle enquiry service to check any car’s tax.
Using the calculator
- Choose when the car was first registered.
- Pick the fuel type and enter the CO2 figure from the V5C.
- For cars from April 2017, enter the list price when new.
- Under “More options”, tell us if an electric car was registered before April 2025, and your yearly mileage to see the 2028 per-mile charge.
Where the CO2 figure comes from
The CO2 figure is in section V.7 of your V5C logbook. Cars registered since September 2018 were tested under the newer WLTP procedure, which gives higher, more realistic figures than the older NEDC test. That is one reason first-year rates for similar cars can look higher than they did a few years ago.
If the logbook has no CO2 figure, the car is usually taxed by engine size instead. For a new car, the dealer or manufacturer will give the official figure, and it appears on the window sticker in the showroom.
Working out the list price
The list price for the supplement is the published price of the car on the day before it was first registered. It includes VAT and any options fitted before registration, such as paint, wheels or a sunroof. It excludes the first-year car tax and the first registration fee.
- Discounts from the dealer do not reduce the list price.
- Options added after registration do not count.
- A car listed at £39,500 with £1,000 of factory options has a list price of £40,500, so it pays the supplement.
The DVLA vehicle enquiry service shows whether a car pays the supplement. It is worth checking before you buy a used car aged two to six years, as the extra £440 a year adds up.
Budgeting over the life of a car
For most cars registered since 2017, car tax is a steady £200 a year after the first year, so it is easy to budget for. The big differences come from the first-year rate, which you pay only on a new car, and the supplement, which lasts five years.
If you are choosing between a new car just over £40,000 and a similar one just under, the supplement adds £2,200 over five years. For electric cars registered from April 2025 the line is £50,000. From 2028, high-mileage electric drivers will also need to allow for the pay-per-mile charge.
Car tax is only one running cost. Fuel or electricity, insurance, servicing and depreciation usually cost much more. The petrol vs electric calculator puts them side by side.
Common mistakes
- Assuming tax comes with a used car. It never does. Tax it before you drive it home.
- Using the price you paid. The supplement uses the list price when new.
- Forgetting a Direct Debit has failed. The DVLA cancels the tax, and cameras can pick up an untaxed car quickly.
- Driving after a SORN. A SORN car cannot be used or parked on a public road.
Your driving licence has its own renewal dates: at 70 and every three years after. The licence at 70 calculator works yours out.