Car Tax Calculator Guide UK 2025/26

Vehicle Excise Duty (VED), commonly known as road tax or car tax, is a legal requirement for driving on UK roads. The amount you pay depends on when your car was registered, its CO2 emissions, fuel type, and list price. This guide explains how UK car tax works in 2025/26 and helps you calculate what you'll pay.

How UK Car Tax Works

The UK car tax system changed significantly in April 2017, creating different rules based on registration date:

2025/26 Car Tax Rates (Registered After April 2017)

First Year Rates (Based on CO2 Emissions)

Standard Rate (Year 2 Onwards)

Expensive Car Supplement

Vehicles with a list price over £40,000 when new pay an additional premium:

• Amount: £410 per year (2025/26)
• Duration: 5 years from the second year of registration
• Total additional cost: £2,050
• Applies to: Cars registered from 1 April 2017 with list price over £40,000

Pre-April 2017 Cars

Cars registered between 1 March 2001 and 31 March 2017 are taxed purely on CO2 emissions in 13 bands (A to M). Band A (up to 100g/km) is free, while Band M (over 255g/km) costs £695.

Tax Exemptions

Some vehicles are exempt from road tax:

• Historic vehicles: Built before 1 January 1983 (rolling exemption)
• Disabled exemption: Vehicles used by disabled people receiving certain benefits
• Agricultural vehicles: Used for agricultural, horticultural, or forestry purposes
• Electric vehicles (pre-April 2025): Zero-emission vehicles registered before April 2025

How to Pay

• Online: At gov.uk/vehicle-tax
• Phone: DVLA automated line 0300 123 4321
• Post Office: Selected branches with V5C form

Payment options: Pay annually, 6-monthly (5.5% surcharge), or monthly by Direct Debit (5.5% surcharge spread over 12 months).

VED Bands and Rates for 2025/26

Vehicle Excise Duty (VED) in the UK is calculated based on your vehicle's CO2 emissions. For cars registered on or after 1 April 2017, the first year rate varies significantly based on emissions, while the standard rate applies from year two onwards. Here are the key VED bands for 2025/26:

• 0 g/km CO2 (Band A): First year rate £0, standard rate £10 per year. Applies to pure electric vehicles registered before April 2025.
• 1-50 g/km CO2: First year rate £10, standard rate £190 per year. Covers most plug-in hybrid vehicles.
• 51-75 g/km CO2: First year rate £30, standard rate £190 per year.
• 76-90 g/km CO2: First year rate £135, standard rate £190 per year.
• 91-100 g/km CO2: First year rate £175, standard rate £190 per year.
• 101-110 g/km CO2: First year rate £195, standard rate £190 per year.
• 111-130 g/km CO2: First year rate £220, standard rate £190 per year.
• 131-150 g/km CO2: First year rate £270, standard rate £190 per year.
• 151-170 g/km CO2: First year rate £680, standard rate £190 per year.
• 171-190 g/km CO2: First year rate £1,095, standard rate £190 per year.
• 191-225 g/km CO2: First year rate £1,650, standard rate £190 per year.
• 226-255 g/km CO2: First year rate £2,340, standard rate £190 per year.
• Over 255 g/km CO2: First year rate £2,745, standard rate £190 per year.

Vehicles with a list price exceeding £40,000 when new are subject to an additional annual supplement of £410 for years two through six, on top of the standard rate. This is commonly known as the expensive car supplement.

Zero Emission Vehicles and the 2025 Changes

From 1 April 2025, zero emission vehicles (including pure electric cars) are no longer exempt from VED. Key changes include:

• New zero emission vehicles: Pay the lowest first year rate of £10, then the standard rate of £190 per year from year two.
• Existing zero emission vehicles: Previously exempt vehicles now pay the standard rate of £190 per year.
• Expensive car supplement: Zero emission vehicles with a list price over £40,000 are now also subject to the £410 annual supplement for five years.

Despite now paying VED, electric vehicles remain significantly cheaper to tax than most petrol and diesel cars, particularly in the crucial first year of registration where high-emission vehicles can face charges of over £2,700.

Clean Air Zones and ULEZ in the UK

In addition to VED, UK drivers may face charges for entering Clean Air Zones (CAZs) and the Ultra Low Emission Zone (ULEZ). These are separate from road tax but are important to factor into total vehicle running costs:

• London ULEZ: Covers all London boroughs. Non-compliant vehicles (generally pre-Euro 4 petrol or pre-Euro 6 diesel) pay £12.50 per day. Lorries, buses, and coaches pay up to £100 per day for the LEZ.
• Birmingham Clean Air Zone: Charges non-compliant cars £8 per day and lorries/buses £50 per day.
• Bath Clean Air Zone: Charges non-compliant commercial vehicles. Private cars are not currently charged.
• Bristol Clean Air Zone: Charges non-compliant cars £9 per day and larger vehicles up to £100 per day.
• Bradford, Sheffield, Newcastle, and other cities have introduced or are planning their own zones.

Generally, petrol cars meeting Euro 4 standards (registered after approximately 2005) and diesel cars meeting Euro 6 standards (registered after approximately September 2015) are compliant with all current UK Clean Air Zones. Electric and hydrogen vehicles are always exempt.

First Year Rates Explained

The first year rate, sometimes called the showroom tax, is paid when a new car is first registered. It is typically included in the on-the-road price quoted by dealers. For high-emission vehicles such as large SUVs and performance cars, the first year rate can be a significant additional cost. For example, a new Range Rover Sport with emissions of 199 g/km CO2 would attract a first year rate of £1,650, compared to just £10 for a Tesla Model 3.

After the first year, almost all cars move to the flat standard rate of £190 per year (plus the expensive car supplement if applicable). This means that the first year rate is the main area where choosing a lower-emission vehicle delivers direct VED savings.

Frequently Asked Questions

Do I still need to tax my electric car in 2025/26?

Yes. From April 2025, all electric vehicles must pay VED. New electric cars pay £10 in the first year and £190 per year thereafter. If your electric car had a list price over £40,000, you will also pay the £410 expensive car supplement for five years from the second year of registration. You can tax your vehicle online through the DVLA website.

How do I find out my car's CO2 emissions for VED?

Your car's CO2 emissions are listed on the V5C registration document (logbook) in section D.2. You can also find them by entering your registration number on the DVLA vehicle enquiry service at gov.uk. For new cars, the CO2 figure is included in the manufacturer's specifications and on the energy label displayed in showrooms.

Can I pay car tax monthly?

Yes, the DVLA allows you to pay VED annually, every six months, or monthly by direct debit. However, paying six-monthly or monthly costs slightly more than paying annually due to a surcharge of approximately 10%. For a standard rate of £190 per year, monthly payments work out at roughly £199 over the year.

What happens if I do not pay my car tax?

Driving an untaxed vehicle on UK roads is a criminal offence. The DVLA uses automatic number plate recognition (ANPR) cameras to detect untaxed vehicles. Penalties include a fine of up to £1,000, wheel clamping, or having your vehicle impounded and potentially crushed. If your vehicle is not being used on public roads, you must declare a Statutory Off Road Notification (SORN).

Understanding the UK Vehicle Tax System

Vehicle Excise Duty (VED) has been a feature of UK motoring since 1920, when it was introduced under the Roads Act. Today, the Driver and Vehicle Licensing Agency (DVLA) administers the system, collecting approximately 7 billion pounds annually from the UK's 33 million registered vehicles. The revenue goes directly to the Treasury's central fund rather than being ring-fenced for road maintenance, despite the common perception that it funds road building and repairs.

Since April 2020, all VED transactions have been handled digitally. The paper tax disc, which was displayed on windscreens from 1921 to 2014, is no longer required. Instead, the DVLA maintains an electronic database that police and automatic number plate recognition (ANPR) cameras use to verify whether a vehicle is taxed. Driving an untaxed vehicle on public roads in the UK is a criminal offence that can result in a fine of up to 1,000 pounds, wheel clamping, or the vehicle being impounded and crushed.

The UK government has confirmed that from April 2025, zero-emission vehicles (including fully electric cars) will no longer be exempt from VED. They will pay the standard annual rate, which is currently 190 pounds for vehicles registered after April 2017. This change reflects the growing number of electric vehicles on UK roads, which exceeded one million in 2024, and the declining fuel duty revenue as petrol and diesel car sales fall. Plug-in hybrids and hydrogen fuel cell vehicles will also lose their reduced rate, paying the same standard annual rate as petrol and diesel vehicles.

Vehicles with a list price exceeding 40,000 pounds when new attract an additional annual supplement of 410 pounds for the first five years of the standard rate, regardless of their emissions. This affects many popular models including certain specifications of the Tesla Model 3, BMW 3 Series, and Audi A4. From April 2025, the list price threshold remains at 40,000 pounds.

Tips for Managing Your UK Car Tax

• Pay by Direct Debit to spread the cost: The DVLA allows you to pay VED monthly or six-monthly by Direct Debit. While there is a small surcharge (approximately 5 percent for monthly payments), this spreads the cost and avoids a large annual payment.
• SORN your vehicle if not in use: If your car is kept off the public highway, make a Statutory Off Road Notification (SORN) to avoid paying VED. The SORN remains in force until you tax the vehicle again and there is no time limit.
• Check your car's CO2 emissions before buying: Use the DVLA's vehicle enquiry service at gov.uk to check the exact CO2 emissions and VED band of any vehicle by entering its registration number. This helps you understand the ongoing tax cost before purchasing.
• Claim a refund when selling: When you sell or transfer a vehicle, the DVLA automatically refunds any remaining full months of VED to the registered keeper. There is no need to apply separately.

UK Car Tax Questions

James Mitchell, ACCA

Chartered Accountant & Former HMRC Advisor

James is a Chartered Certified Accountant (ACCA) specialising in UK personal taxation and financial planning. With over 12 years in practice and a background as a former HMRC compliance officer, he brings authoritative insight to complex tax topics.