Car Tax Calculator
How to Calculate Your Car Tax
The amount of Vehicle Excise Duty (VED) you pay depends on when your vehicle was first registered. Follow these steps:
- Select the registration date period that applies to your vehicle
- Enter the required details based on your vehicle’s age (CO₂ emissions, fuel type, or engine size)
- For vehicles registered after 1 April 2017, specify whether you need the first-year rate or subsequent years
- If your vehicle’s original list price exceeded £40,000, this will affect the calculation
- Click ‘Calculate Car Tax’ to see your annual and 6-month costs
Quick Tip: You can pay your car tax annually or every 6 months. Paying annually is more cost-effective as 6-month payments include a 5% surcharge.
VED Rate Bands Explained
Vehicles Registered After 1 April 2017
The current VED system applies different rates for the first year based on CO₂ emissions, then a flat standard rate for subsequent years.
| CO₂ Emissions (g/km) | First Year Rate | Standard Rate (Year 2+) |
|---|---|---|
| 0 | £10 | £195 |
| 1 – 50 | £110 | £195 |
| 51 – 75 | £130 | £195 |
| 76 – 90 | £270 | £195 |
| 91 – 100 | £350 | £195 |
| 101 – 110 | £390 | £195 |
| 111 – 130 | £440 | £195 |
| 131 – 150 | £540 | £195 |
| 151 – 170 | £1,360 | £195 |
| 171 – 190 | £2,190 | £195 |
| 191 – 225 | £3,300 | £195 |
| 226 – 255 | £4,680 | £195 |
| Over 255 | £5,490 | £195 |
Expensive Car Supplement: Vehicles with an original list price exceeding £40,000 pay an additional £425 annually for five years (years 2-6 after first registration). This now includes electric vehicles registered from 1 April 2025.
Vehicles Registered 1 March 2001 – 31 March 2017
| Band | CO₂ (g/km) | Petrol/Diesel | Alternative Fuel |
|---|---|---|---|
| A | Up to 100 | £20 | £10 |
| B | 101-110 | £20 | £10 |
| C | 111-120 | £35 | £25 |
| D | 121-130 | £165 | £155 |
| E | 131-140 | £195 | £185 |
| F | 141-150 | £215 | £205 |
| G | 151-165 | £265 | £255 |
| H | 166-175 | £315 | £305 |
| I | 176-185 | £345 | £335 |
| J | 186-200 | £395 | £385 |
| K | 201-225 | £430 | £420 |
| L | 226-255 | £735 | £725 |
| M | Over 255 | £760 | £750 |
Vehicles Registered Before 1 March 2001
| Engine Size | 12 Months | 6 Months |
|---|---|---|
| Up to 1549cc | £210 | £115.50 |
| Over 1549cc | £345 | £189.75 |
Key Changes in 2025
The UK government implemented significant VED changes from 1 April 2025:
- Electric Vehicles: EVs registered from April 2025 now pay the standard rate of £195 annually from the second year onwards, ending their previous exemption
- First Year Rates Doubled: Most first-year VED rates for new cars have doubled, particularly affecting vehicles emitting 76g/km CO₂ and above
- Low Emission Increases: Vehicles emitting 1-50g/km now pay £110 in the first year (up from £10), and those emitting 51-75g/km pay £130 (up from £30)
- Expensive Car Supplement Extended: The £40,000 threshold supplement now applies to electric vehicles, adding £425 annually for five years
- Highest Polluters: New cars emitting over 255g/km CO₂ face a first-year charge of £5,490
Payment Options
You can pay your car tax in different ways, each with varying costs:
Annual Payment
Pay the full amount once per year. This is the most cost-effective option with no additional charges.
Six-Monthly Payment
Pay in two instalments across the year. This costs 5% more overall than the annual rate (each payment is 55% of the annual rate).
Monthly Direct Debit
Spread the cost across 12 monthly payments. This costs 5% more overall than the annual rate but makes budgeting easier.
Money Saving Tip: If financially viable, always opt for annual payment. Paying £195 annually saves you approximately £10 compared to monthly or six-monthly payments.
When and How to Tax Your Vehicle
When Must You Tax?
Your vehicle must be taxed before you can drive it on public roads. Tax is due:
- When you first register a new vehicle
- When your current tax expires
- When you become the new keeper of a vehicle (tax doesn’t transfer between owners)
What You Need
To tax your vehicle, you’ll need:
- The 11-digit reference number from your V11 reminder letter or V5C registration certificate (logbook)
- A valid MOT certificate (if your vehicle is more than 3 years old)
- Valid vehicle insurance
- Payment method (debit/credit card or Direct Debit details)
How to Pay
You can tax your vehicle through multiple channels:
- Online: Via gov.uk/vehicle-tax (quickest method, available 24/7)
- By Phone: Call the DVLA on 0300 123 4321
- At a Post Office: Take your documents to any Post Office that handles vehicle tax
Exemptions and Discounts
Zero-Rated Vehicles
Some vehicles are exempt from paying VED, though you must still tax them (you’ll pay £0):
- Vehicles used by disabled people who receive certain benefits
- Historic vehicles (manufactured or first registered more than 40 years ago)
- Electric vehicles registered before 1 April 2025 (from second year onwards)
- Vehicles used for agriculture, horticulture, or forestry on specific premises
Reduced Rates
Alternative fuel vehicles benefit from a £10 discount on standard rates for vehicles registered between 2001-2017.
Important: Even if your vehicle is exempt, you still need to apply for vehicle tax. You cannot drive an untaxed vehicle on public roads unless it’s being driven to a pre-booked MOT appointment.
Frequently Asked Questions
What happens if I drive without valid tax?
Driving without valid VED is illegal and can result in a £80 fine. If unpaid, this can increase to £1,000 and your vehicle may be clamped or impounded. DVLA uses automatic number plate recognition to detect untaxed vehicles.
Does car tax transfer when I sell my vehicle?
No. VED is no longer transferable between owners. When you sell a vehicle, any remaining tax is automatically cancelled and you receive a refund for complete months remaining. The new owner must tax the vehicle before driving it.
How do I get a refund on my car tax?
You automatically receive a refund for full months remaining when you tell DVLA you’ve sold, scrapped, or taken the vehicle off the road (SORN). The refund is typically issued within 6 weeks by cheque to the registered keeper’s address.
What is the Expensive Car Supplement?
Vehicles with an original list price exceeding £40,000 pay an extra £425 per year on top of the standard rate. This applies for five years, from the second to the sixth year after first registration. From April 2025, this includes electric vehicles.
Can I drive my car while waiting for the tax disc?
Yes. Once you’ve successfully taxed your vehicle online or at the Post Office, you can drive immediately. Tax discs are no longer issued as the system is now digital. Police and parking attendants can check your vehicle’s tax status electronically.
What is a SORN and when do I need one?
SORN (Statutory Off Road Notification) declares your vehicle is not being used on public roads. You must declare SORN if your vehicle is untaxed and kept off-road. This prevents penalties for having an untaxed vehicle. Your vehicle must be kept on private property when under SORN.
How is CO₂ calculated for my vehicle?
CO₂ emissions are measured during official testing and recorded on your vehicle’s V5C registration certificate. For newer vehicles, this uses the Worldwide Harmonised Light Vehicle Test Procedure (WLTP). You can also check emissions data using online vehicle checking services or manufacturer specifications.
What if my car was registered on 1 April?
Vehicles registered exactly on the changeover date (1 April 2017 or 1 March 2001) fall into the new system that came into effect on that date. Check your V5C registration certificate for the exact registration date.
Are electric vehicles now taxed the same as petrol cars?
From April 2025, new electric vehicles pay £10 in the first year, then £195 annually from the second year onwards. This ended their previous exemption from VED. Electric vehicles over £40,000 also now pay the Expensive Car Supplement.
What is RDE2 compliance?
RDE2 (Real Driving Emissions 2) is a standard for diesel vehicles measuring emissions in real-world driving conditions. Diesel cars meeting RDE2 standards pay lower first-year VED rates than non-compliant models. Most diesel vehicles registered from September 2019 onwards are RDE2 compliant.
Comparing VED Systems Across Periods
| Registration Period | Based On | Typical Annual Cost | Key Feature |
|---|---|---|---|
| Before March 2001 | Engine size | £210-£345 | Simple two-tier system |
| March 2001 – March 2017 | CO₂ bands | £20-£760 | 13 bands based on emissions |
| April 2017 onwards | CO₂ first year, then flat rate | £10-£5,490 first year, then £195 | High first-year charge, standardised thereafter |
The current system (2017 onwards) aims to incentivise purchasing lower-emission vehicles through higher first-year charges for polluting cars, while maintaining consistent revenue through the flat £195 standard rate. This differs from the previous 2001-2017 system where low-emission vehicles paid minimal ongoing tax.
Special Vehicle Categories
Motorhomes
Motorhomes have different VED rates based on:
- Registered before March 2001: Based on engine size, similar to cars
- Registered March 2001 – March 2020: Private light goods vehicle rate (typically £290 annually)
- Registered April 2020 onwards: May follow car rates if classified as M1SP category with CO₂ data available
Vans and Light Commercial Vehicles
Vans (up to 3,500kg gross weight) pay a flat rate regardless of emissions:
- Standard rate: £320 per year
- Rate applies to most diesel and petrol vans
- Separate rates for heavier goods vehicles
Motorcycles
Motorcycle VED is based on engine size:
- Up to 150cc: £24 annually
- 151-400cc: £54 annually
- 401-600cc: £72 annually
- Over 600cc: £104 annually