UK Car Tax Calculator 2025/26
Your Car Tax Result
What Is Car Tax (VED)?
Vehicle Excise Duty (VED), commonly called car tax or road tax, is an annual tax charged by the UK government on most vehicles used or kept on public roads. It is administered by the Driver and Vehicle Licensing Agency (DVLA) and must be paid before driving your car legally.
VED has undergone significant reforms in recent years. Since April 2017, rates for new cars are heavily linked to CO2 emissions, particularly in the first year of registration. From April 2025, even fully electric vehicles are now subject to VED for the first time, marking a major policy shift.
The money collected goes to general government spending, not directly into road maintenance. It is a legal requirement – you must either tax your vehicle or declare a Statutory Off Road Notification (SORN).
How VED Is Structured
There are two key rates for cars registered from April 2017:
- First Year Rate: A one-off charge based on CO2 emissions, paid when the car is first registered. This is often the highest single VED payment you will make.
- Standard Rate: The flat annual rate paid from year two onward. For 2025/26, this is £190 for most cars, or £620 for cars with a list price above £40,000 (the premium rate).
First Year VED Rates 2025/26 (New Cars)
These rates apply to brand-new cars registered for the first time on or after 1 April 2017. They are based solely on the CO2 emissions figure shown on the V5C registration document.
| CO2 Emissions (g/km) | Petrol / Diesel (RDE2) | Diesel (non-RDE2) | Alt Fuel / Hybrid |
|---|---|---|---|
| 0 (zero emission) | £10 | N/A | £10 |
| 1–50 | £10 | £30 | £10 |
| 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 |
| Over 255 | £2,745 | £2,745 | £2,735 |
Standard Annual VED Rates 2025/26
From year two onward, most cars registered after April 2017 pay a flat standard rate, regardless of CO2 emissions. This significantly simplifies ongoing taxation.
Premium Car Surcharge (£40,000+ List Price)
If a car's published list price (including options) exceeded £40,000 when new, an additional surcharge of £620 per year is added to the standard rate for years two through six (five years total).
This means the annual VED for a premium electric car costing £45,000 is £810/year (£190 + £620) from year two until year six, after which only the standard £190 applies.
The surcharge applies even if you buy the car used, as long as the original list price exceeded £40,000. DVLA tracks this from the original registration date.
Cars Registered Before April 2017
Different rules apply depending on when your car was first registered in the UK.
March 2001 to March 2017
Cars in this bracket are taxed on a CO2 band system with separate rate bands. The rates range from £0 for Band A (up to 100g/km) to £695 per year for Band M (over 255g/km). These rates have been frozen for several years but are reviewed in each Budget.
Before March 2001
Cars registered before 1 March 2001 are taxed based on engine size rather than CO2 emissions:
- Up to 1549cc engine: £210 per year
- Over 1549cc engine: £345 per year
Historic Vehicles
Vehicles over 40 years old are classified as Historic Vehicles and are exempt from VED entirely. They must still be taxed (at zero cost) or have a valid SORN declaration.
Electric Car Tax Changes from April 2025
One of the most significant changes in recent years is the end of the VED exemption for electric vehicles. From 1 April 2025, all zero-emission cars registered on or after that date now pay road tax.
The new rules for electric vehicles are:
- New EVs (registered from April 2025): £10 first-year rate, then £190 standard rate from year two
- EVs registered April 2017 – March 2025: Now pay £190 standard rate annually
- EVs registered before April 2017: Pay the standard pre-2017 Band A rate
- EVs over £40,000 list price: Also subject to the £620 premium surcharge for years two to six
This change is expected to raise approximately £1.3 billion per year for the UK Treasury by 2029/30, as the proportion of EVs on UK roads continues to grow rapidly.
SORN – When You Don't Need to Pay
If you are not using your vehicle on public roads, you can declare a Statutory Off Road Notification (SORN). This means you do not need to pay VED but you also cannot drive or park the vehicle on a public road.
A SORN is free and can be declared online at the DVLA website, by phone, or by post. It starts on the first day of the following month. You can keep a SORN indefinitely as long as the vehicle is kept off the road.
How to Pay Car Tax
Car tax can be renewed or paid in several ways:
- Online: Via the DVLA website at gov.uk/vehicle-tax. You need the 11-digit reference from your V11 reminder letter or the V5C.
- Phone: Call the DVLA 24-hour automated service.
- Post Office: In person at a Post Office that deals with vehicle tax. You need your V5C logbook or V11 reminder, plus a valid MOT certificate (if required).
You can pay annually or in 6-month instalments. A 5% surcharge applies to 6-month and monthly direct debit payments, so paying annually saves money.