Car tax bands explained
Vehicle Excise Duty (VED), but commonly called car tax or road tax,is a big running cost with cars. It can be anything up to £1,000 or more a year, depending on how environmentally-friendly the car is. Here you can find out how much road tax you’llpay on your vehicle, car tax changes for 2017 and how to work out the tax price on any car using online tools.
Taxing a car – the basics
Car tax must be paid on all vehicles registered in the UK,driven on or kept on a public road. Choosing the right car can make a big difference to your tax costs.
Plus, choosing a low-tax car could mean it holds its value better as more people will want to buy it.
A vehicle kept off-road must also be taxed or have a SORN (Statutory Off Road Notification).
Find out the tax rate for any new or used car here. or find out what VED you should be paying using your V5C reference number.
Car owners exempt from car tax
The following types of car owners pay no car tax:
- Owners of band A cars
- Owners of a brand new car (in their first year of registration) in band B to D – but once the car goes past its first birthday you’ll need to start paying tax
If you have a disability, you might be entitled to free car tax if you:
- Have an invalid carriage
- Receive War Pensione’rs Mobility Supplement
- Receive the higher rate of the mobility component of Disability Living Allowance
You don’t have to pay car tax on vehicles made before 1 January 1974 (known as ‘historic vehicles’).
Find out what other vehicles are exempt from tax on the GOV.UK website.
How much is car tax?
Cars registered after the March 2017
In the car’s first year rates will changed based on the carbon dioxide emissions of the vehicle.
New tax rates for 2017
If the published price before any discounts also known as ‘list price’ is above £40,000 at the first registration. Then after the first licence there is an additional £310 to pay for the next 5 years.
So for example an electric car with a list price of over £40,000 would pay £310 (£0+£310) for the next 5 years.
After 5 years, you’ll pay the standard annual rate depending on what fuel your vehicle uses.
Check the list price with your dealer so you know how much vehicle tax you’ll have to pay.
Cars registered on or after February 2001
For help working out all your car’s running costs, try our Car costs calculator tool.
The rate of tax you pay depends on the car’s official CO2 emissions and the type of fuel it uses.
Costs can vary from nothing for a non-polluting electric car like the Nissan Leaf, through to £1,100 for the first year of a 6-litre Bentley Flying Spur (£505 for year 2 onwards).
The rates are split into bands based on how many grams of carbon dioxide (CO2) a car emits per kilometre driven:
Car tax bands and rates
CO2 emission (g/km)