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Guide to car tax rates in the UK
25 June 2024 - 2 min read

What you need to know about car tax rates

Car tax is a tax charged on all cars driven on UK roads. Also referred to as Vehicle Excise Duty (VED) or road tax, car tax is payable annually to HMRC, and its rate depends on factors like the kind of vehicle being taxed, its age, and when the car was registered.

Car tax rates for 2024

HMRC recently released the new car tax rates applicable from 1 April, 2024. As you can see in the table below, the annual rates are largely dependent on the vehicle’s CO2 emissions.

Cars registered on or after 1 April, 2017

 
CO2 Emissions Petrol car/diesel car that meets the RDE2 standard (tax class 48 and 49) Other diesel car (tax class 49)

Alternative fuel car* (tax class 59)

0 £0 ​£0​​​​​​ £0
1-50 £10 £30 £0
51-75 £30 £135 £20
76-90 £135 £175 £125
91-100 £175 £195 £165
101-110 £195 £220 £185
111-130 £220 £270 £210
131-150 £270 £680 £260
151-170 £680 £1,095 £670
171-190 £1,095 £1,650 £1,085
191-225 £1,650 £2,340 £1,640
226-255 £2,340 £2,745 £2,330
255 and over £2,745 £2,745 £2,735

*Alternative fuel cars include hybrids, bioethanol and LPG. 

The above rates will only apply to your first licence. If it’s your second licence or onwards, the standard rate of vehicle tax listed in the table below will apply. 

Cars registered 1 March 2001 and 31 March 2017

Car tax for cars registered between 1 March 2001 and 31 March 2017 are calculated based on their fuel type and CO2 emissions. If your car was registered in that time period, check the vehicles tax rates on the HMRC website.

Checking your car tax band

Car tax bands range from A to M and are a simple way to categorise your car based on the amount of CO2 they emit. You can check which band your car sits in by looking at your CO2 emissions, which can be found in your V5C log book, or by using the HMRC car tax price checker tool.

If you are unsure on your CO2 emissions in the first place, HMRC has a handy tool to help you find your car’s CO2 emissions and fuel consumption.

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Calculating your car tax rate for the year

The first time your car is registered, you will have to pay your road tax based on your car’s CO2 emissions. This is an annual payment, so it covers the cost of your car tax for 12 months.

From the second payment and onwards you'll pay a fixed rate, and you can opt to pay annually, every 6 months, or monthly.

The flat rate for tax year 2024/2025 is £190, but you are eligible for a small discount if you have an alternative vehicle. All the fixed rates for car tax are listed in the table below.

Second year and onwards fixed road tax rates

Payment type/fuel type Petrol or diesel Electric Alternative (hybrid,bioethanol,LPG)
Single 12 month payment £190 £0 £180
Single 12 month payment by Direct Debit £190 N/A £180
Total of 12 monthly payments by Direct Debit £199.50 N/A £189
Single 6 month payment  £104.75 £0 £99
Single 6 month payment by Direct Debit £99.75 N/A £94.50

Vehicles with a list price of more than £40,000

Car owners with cars that are worth more than £40,000 are also liable to pay an additional £410 each year for the first 5 years. This is based on the car’s list price, which is the car’s original published price before any discounts at the time of its first registration. 

The fee is NOT payable for zero emissions vehicles. 

How to pay your car tax

You can pay for your car tax online. Alternatively, you can pay for your road tax over the phone using the DVLA’s 24 hour vehicle tax service on 0300 123 4321. The option to pay via your Post Office is also still available to motorists. The above link with guide you to a page with different options for taxing your vehicle. 

Exemptions from car tax

Your vehicle is exempt from vehicle tax if it's: 

  • Used by a disabled person
  • A disabled passenger vehicle
  • An electric vehicle
  • A mobility scooter, powered wheelchair, and invalid carriage
  • A historic vehicle built older than 40 years (counting from 1 January of the current year)
  • A vehicle used just for agriculture, horticulture, and forestry
  • A mowing machine
  • A steam vehicle

For other specific types of vehicles and motorcycles, refer to the V149 document by HMRC. 

FAQ

The cost of your car tax in 2024 will depend on a number of factors including the kind of car you have, its emissions and whether it is your car’s first year on the roadways. If it is your car’s first year, the rate you pay will depend on the CO2 emissions. For the second year and beyond, you can expect to pay a flat rate based on the kind of car- petrol, hybrid or electric.
To check what car tax band your car falls into, you can either contact DVLA via phone or visit the DVLA website. You will need a few details including the 11 digit reference number found in your car’s logbook.

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