Tax does not come with the car
The most important thing to know about car tax when buying is that it never transfers to a new keeper. When the seller tells the DVLA the car has been sold, their tax is cancelled. You must tax the car yourself before you drive it away, even if the check shows months left. You can do it online with the reference number on the green new keeper slip from the logbook.
So why check the tax status at all? Because it tells you about the car's recent life. An untaxed car that has been on the road is worth a question. A car with a SORN has been declared off the road, which might mean a project car, a car in storage or one waiting for repairs, so ask the seller which. If it has been off the road for a long time, check its MOT too: a SORN car can only be driven on the road to a pre-booked MOT test.
How we work out the yearly cost
Vehicle tax depends on when the car was first registered. Cars registered from 1 April 2017 pay the standard rate of £200 a year from the second year. If the list price was over £40,000 (£50,000 for electric cars from 1 April 2026), there is an extra £440 a year for five years, from years 2 to 6. The DVLA does not record list prices, so for a car young enough for the supplement we show both figures. We also show which scheme applies, so you can see how the figure was reached.
Cars registered between 1 March 2001 and 31 March 2017 pay by CO2 band, from £20 a year in bands A and B to £790 in band M. Cars registered before March 2001 pay by engine size: £230 a year up to 1549cc and £375 above that. Vehicles built before 1 January 1986 can apply for the free historic class. Our car tax guide has the full table.
What it means for your budget
Tax can separate two otherwise similar cars. A car in band C costs £35 a year, while one in band K costs £445. A car on the standard rate costs £200, or £640 while the supplement applies. Electric cars registered from April 2017 pay the standard rate like any other car, and those registered between 2001 and 2017 pay £20. Our running costs check adds a year of fuel to the tax figure, so you can compare cars like for like.
The estimate covers cars only. Vans, motorbikes and other vehicle types have their own rates, which GOV.UK lists in its vehicle tax rate tables. Once you have bought, set a free tax reminder so the renewal never catches you out.