Ryan Barham
Last updated: 20/06/2025
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.
Related tags:
Temporary Car InsuranceTempcoverDriving Advice