UK Car Road Tax Rates 2025/26: Complete Guide to VED Bands and Rules

Updated for 2025/26 financial year | Originally Published 4 July 2022

This article will cover:

• what is car road tax?
• how is car road tax calculated?
• road tax for cars registered on or after 1 April 2017
• road tax for cars registered between 1 March 2001 and 31 March 2017
• road tax for cars registered before 1 March 2001
• vehicles exempt from road tax
• who is responsible for taxing a leased vehicle?
• how to check if a vehicle is taxed

What is Car Road Tax?

Vehicle Excise Duty (VED), commonly called car tax or road tax, is an annual tax paid by anyone with a motor vehicle used on UK roads. The amount you pay is determined by the car’s CO2 emissions, fuel type, engine size, and date of registration. VED rates are updated annually, typically increasing with inflation. The DVLA enforces payment, and failure to tax your vehicle can result in a fine of up to £1,000Vehicle Excise Duty (VED), more commonly known as car tax or road tax is an annual tax paid by anyone with a motor vehicle used on UK roads.  There are different rates of car tax known as car tax bands, road tax bands or VED bands.  Generally, the more CO2 your car emits, the more you pay.

How is Car Road Tax Calculated?

VED is split into two main parts:

• First-year rate: Paid when a new car is registered, based on its CO2 emissions.

• Standard rate: A flat annual rate from the second year onwards.

Factors Impacting Road Tax

• Year of registration: Different rules and rates apply depending on when the car was first registered.

• Engine size: For cars registered before 1 March 2001, tax is based on engine capacity.

• Fuel type: Impacts rates for cars registered between 2001 and 2017, and also for newer cars (e.g., hybrids, LPG, bioethanol).

• CO2 emissions: Determines the first-year rate for cars registered from 1 March 2001 onwards.

• Vehicle value: Cars with a list price over £40,000 attract a supplementary “expensive car” charge for five years after registration

Road Tax for Cars Registered On or After 1 April 2017

1. First Tax Payment (First-Year Rate)

From 1 April 2025, first-year VED rates have increased significantly, especially for higher-emission vehicles. Electric vehicles (EVs) are no longer exempt and now pay the lowest first-year rate.

2. Standard Rate (Second Year Onwards)

From April 2025, the standard annual VED rate for all cars registered after 1 April 2017 (including petrol, diesel, hybrid, and electric) is £195. There is no longer a discount for hybrids, and EVs are no longer exempt.

3. Expensive Car Supplement

If your car had a list price over £40,000 when new, you must pay an additional £425 per year (up from £410) for five years, starting from the second year after registration. This now applies to electric vehicles as well

Road Tax for Cars Registered Between 1 March 2001 and 31 March 2017

These vehicles are taxed based on CO2 emissions and fuel type. Rates have increased in line with inflation for 2025/26. For full details, consult the official V149 table, but as an example:

• Band A (up to 100g/km): £0

• Band B (101–110g/km): £20

• Band C (111–120g/km): £35

• Band D (121–130g/km): £160

• Band E (131–140g/km): £190

• Band F (141–150g/km): £210

• Band G (151–165g/km): £255

• Band H (166–175g/km): £305

• Band I (176–185g/km): £335

• Band J (186–200g/km): £385

• Band K (201–225g/km): £415

• Band L (226–255g/km): £710

• Band M (over 255g/km): £7354

(Alternative fuel vehicles in these bands are typically £10 less.)

Road Tax for Cars Registered Before 1 March 2001

Tax is based on engine size:

Vehicles Exempt from Road Tax

• Historic vehicles: Cars built before 1 January 1985 (rolling 40-year exemption).

• Vehicles used by disabled people: Exempt if registered for disability use.

• Disabled passenger vehicles: Used by organizations transporting disabled people.

• Electric vehicles: From 1 April 2025, EVs are no longer exempt. They pay £10 in the first year and then the standard rate (£195) from the second year onwards. The expensive car supplement also applies to EVs over £40,000.

Note: Hybrid vehicles are not exempt.

Who Is Responsible For Taxing A Leased Vehicle?

For contract hire or personal contract hire agreements, the finance provider is responsible for taxing the vehicle throughout the lease period.

How To Check If A Car Is Taxed

You can check a vehicle’s tax status for free using the official government website by entering the vehicle’s registration number. See our simple guide on using this tax checker.

Key 2025/26 Road Tax Changes

• Electric vehicles are now subject to VED.

• The standard rate for all cars (including EVs and hybrids) is £195.

• The expensive car supplement is now £425 per year for five years, including for EVs.

• First-year rates have increased, especially for high-emission vehicles, with the highest band now at £5,490