Vehicle excise duty (VED), usually called car tax, is a yearly charge for using a vehicle on public roads. How much you pay depends mostly on when the car was first registered. There are three systems for cars, plus a free class for historic vehicles. All the rates below apply from 1 April 2026.
Why the rules changed over the years
The system has changed several times, which is why two similar cars can pay very different amounts. Cars registered from March 2001 were taxed on their CO2 emissions, to encourage cleaner cars. From April 2017, cars moved to a flat rate after the first year, with a supplement for expensive cars. Electric cars, which used to pay nothing, now pay the same standard rate as other cars.
Cars registered from 1 April 2017
Newer cars pay a first-year rate based on CO2 emissions, then a flat standard rate.
- First year: from £10 for a car with zero emissions (0 g/km) to £5,690 for a car over 255 g/km. This is paid when the car is first registered, so you do not pay it when you buy a used car.
- From the second year: the standard rate of £200 a year.
- Expensive car supplement: if the car's list price was over £40,000, you pay an extra £440 a year for five years, from the second year to the sixth. For electric cars the threshold is £50,000 from 1 April 2026.
So a car with a list price over £40,000 costs £640 a year to tax from its second year to its sixth, then drops to £200. The supplement is based on the list price when new, not what you paid, so a used car can still carry it.
Electric cars now pay
Electric cars registered from April 2017 pay the standard rate, like any other car. Electric cars registered between 2001 and 2017 pay £20 a year (band A).
Cars registered 1 March 2001 to 31 March 2017
These cars pay a yearly rate based on their CO2 emissions band.
| Band | CO2 (g/km) | 12 months |
|---|---|---|
| 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 over 225 g/km registered before 23 March 2006 stay in band K, at £445. The car's CO2 figure is on the V5C, and our free check shows it.
Cars registered before 1 March 2001
Older cars pay by engine size.
| Engine size | 12 months |
|---|---|
| Up to 1549cc | £230 |
| Over 1549cc | £375 |
Historic vehicles
Vehicles built before 1 January 1986 can apply for the historic vehicle class in 2026/27, which costs nothing. It is not automatic: the keeper has to apply. The cut-off moves forward each year, so a car becomes eligible once it reaches 40 years old. GOV.UK has the details.
Worked examples
Here is how the rules work out for some typical cars.
- A 2014 petrol hatchback with CO2 of 119 g/km is in band C: £35 a year.
- A 2012 diesel estate with CO2 of 139 g/km is in band E: £200 a year.
- A large petrol car registered in 2005 with CO2 of 240 g/km stays in band K, because it was registered before 23 March 2006: £445 a year.
- A 2021 car that cost £45,000 new pays £640 a year for years 2 to 6, then £200.
- A 1999 car with a 1390cc engine pays £230 a year.
Buying a used car: tax does not come with it
Tax never transfers to a new keeper. When the seller tells the DVLA about the sale, their tax is cancelled and they get a refund for any full months left. You need to tax the car yourself before you drive it, even if you are only driving it home.
- 1Get the green new keeper slipThe seller gives you the new keeper slip (V5C/2) from the logbook. Our V5C logbook guide explains what else changes hands.
- 2Tax it onlineUse the reference number on the slip with GOV.UK's vehicle tax service. It takes a few minutes.
- 3Choose how to payYou can usually pay for 12 months, for 6 months, or by monthly direct debit. Paying monthly or every 6 months costs a little more in total.
- 4Set a reminderUse our free tax reminders so you know when the next payment is due.
Do not drive an untaxed car
Driving an untaxed car can lead to a fine, and the car can be clamped. A car with a SORN can only be driven on the road to a pre-booked MOT test.
Selling or keeping a car off the road
When you sell, tell the DVLA straight away. Your tax is cancelled automatically and any full months left are refunded, so there is nothing to apply for. If you are keeping a car off the road instead, make a SORN on GOV.UK and you will not need to tax it.
How to check what a car will cost
Our free car tax check shows the tax status and due date from the DVLA, and estimates the yearly cost at 2026/27 rates. For cars registered from April 2017, the DVLA does not record the list price, so we show both the standard rate and the rate with the supplement when the car is young enough for it to apply. The running costs check adds a year of fuel. The free check also tells you whether the car is taxed, declared off the road (SORN) or untaxed right now.
Vans, motorbikes and other vehicles have their own rates. GOV.UK lists them all in its vehicle tax rate tables.