UK Car Tax Bands 2025/26: How Much Will You Pay?

Key car tax changes for 2025/26 explained

The following car tax changes will come into effect from 1st April 2025:

New standard road tax rate

The standard annual road tax rate will increase from £190 to £195. This new rate will apply to all cars first registered between 1st April 2017 and 31st March 2025.

New taxes for EVs

• Road tax exemption for all EVs will end on April 1st 2025. Until this change comes into effect, EVs are exempt from all road tax, but must still be registered.
• New EVs registered from 1st April 2025 will be taxed £10 in the first year (also known as the ‘showroom tax’).
• Any EVs registered from 1st April 2025 with a list price exceeding £40,000 will be liable to pay the ‘expensive car supplement’ - an additional £425 per year between the second and sixth years of ownership.
• EVs registered between 1st April 2017 and 31st March 2025 will pay the standard rate road tax (set to rise to £195 per year).
• However, all EVs registered before 31st March 2017 will pay a lower annual rate of £20.
• The £10 annual discount on the standard rate road tax for alternative fuel vehicles, including hybrid, bioethanol, and liquefied petroleum gas (LPG) cars will also be discontinued from April 1st 2025, meaning affected drivers will pay the new standard £195 annual rate.
• Electric vans will also be taxed at an annual rate of £355 – the same rate levied on petrol and diesel light goods vehicles.

Tax rises for low emission vehicles

• First-year road tax for low emission vehicles producing between 1 and 50 g/km of CO2 will rise to £110. Until the change comes into effect, hybrid cars in this band (which includes most plug-in hybrids) pay no road tax in the first year, whilst petrol and diesel cars in the same band paid £10.
• First-year road tax for new cars emitting 51-75 g/km will rise to £135. The previous rate for cars in this band was £20 for hybrids and £30 for petrol and diesel cars.

Doubling first-year rates for higher polluting new cars

• From 1st April, the first-year rate for cars in all other road tax bands (producing 76g/km or more) will double.
• This means new cars in the highest band (producing 255g/km or more) will pay £5,490 in the first year.
• The highest rate will apply to 59 new models from 24 car manufacturers, such as Bentley’s Continental W12, Porsche’s 911 Turbo, and Land Rover’s Defender V8.

Re-tax your EV to skip VED – and low tax rates for older EV models!

Richard Evans, webuyanycar’s head of technical services, said:

The tax changes indicate that the cost of electric motoring is set to rise. However, EV drivers currently benefiting from free road tax can avoid any charges for a further year – but time is running out!

You can re-tax your car at any time, even if your current cover isn’t due to expire for months. So, if you re-tax your EV before March 31st you can enjoy another year’s tax-free motoring. Since EVs are tax exempt (until the end of March) renewing early costs nothing – and saves you £195!

Despite the changes and increases across the board, EV drivers will still have the most favourable road tax rates from April 2025. The £10 showroom tax for new EV buyers is small compared to the rates for low and higher-emission models.

Once the changes take effect, owners of EVs first registered before April 2017 will have the cheapest annual road tax rate of all at just £20. This makes older EVs an attractive option for budget used car buyers looking to save on running costs.

Meanwhile, road tax rates for cars producing over 76 g/km of CO2 are set to double. So, if you buy a new luxury or performance car in the highest emissions band from April 1st, you’ll face a £5,490 first-year road tax bill. Therefore, if ownership costs are a concern, it pays to opt for a greener motor.

How much car tax will I pay?

How much road tax you’ll pay can depend on a variety of factors, such as your car’s age, CO2 emissions level, engine size, and list price.

We’ll cover each set of tax bands in detail in the next section.

How to find your car’s tax band

Understanding the UK’s car tax band system can help you determine how much road tax you'll need to pay. Here’s a breakdown of how it works:

• New cars: If you’re buying a new car, you’ll pay the first-year showroom tax based on the vehicle’s CO2 emissions.
• Cars registered from 1st April 2017: From the second year of ownership, you’ll pay a flat annual road tax, which will increase to £195 from April 1st 2025.
• Diesel vehicles registered from 1st April 2025: Any diesel car that does not meet Real Driving Emissions Step 2 (RDE2) standards will be moved up one showroom tax band.
• Cars registered between 1st March 2001 and 31st March 2017 are taxed using 13 emissions-based bands (A to M).
• Expensive car supplement (from April 2025): Vehicles with a list price over £40,000 (including EVs) will now be subject to an annual supplement of £425 (for years 2-6), up from the 2024/25 rate of £410.
• This will only apply to new EVs registered from 1st April 2025 – it won’t affect older EV models.
• Cars registered before 1st March 2001: These are taxed based on engine size rather than emissions.
• You can pay by debit/credit card, or Direct Debit.
• Showroom tax must be paid upfront, but other types of road tax can be paid in instalments.
• If you choose to pay in twice annual or monthly instalments, a 5% surcharge will be added.

To find out which set of tax bands applies to your car, check the date of registration in your V5C logbook.

If your car was first registered from 1st March 2001, you can also use our CO2 emissions check tool to find its emissions level. From here, you can work out how much car tax you’ll have to pay by referring to the relevant table below.

Showroom (first year) tax for cars registered from April 1st 2025

New car owners pay a ‘showroom’ tax for the first year of ownership, which is calculated based on the vehicle’s CO2 emissions level.

In the 2025/26 tax year, new EVs will be subject to this tax for the first time. The rates for low emission cars producing 1-75 g/km of CO2 will increase by £100 - and the rates for all cars producing 76g/km CO2 or more will double from those in 2024/25.

Unlike the other sets of car tax bands, showroom tax must be paid in a single instalment. The rates for the 2024/25 and 2025/26 tax years are listed below:

For petrol cars and diesel cars that meet RDE2 standards:

For diesel cars that don’t meet RDE2 standards and alternative fuel cars*:

What are RDE2 standards for diesel cars?

RDE (Real Driving Emissions) testing measures pollutants such as nitrogen oxides (NOx). These tests are designed to ensure that cars meet low emission standards in real life road conditions – not just in a laboratory environment.

According to the current standards, new petrol and diesel cars must emit no more than 0.080g/km of NOx during laboratory tests.

The first stage of RDE testing requires cars to produce no more than 2.1 times the NOx lab testing limit in real world driving conditions. Since September 2019, all newly registered diesel cars must meet this standard.

RDE2 (the second stage) requires cars to produce no more than 1.5 times the NOx lab limit. From January 2021, the RDE2 standard became mandatory for all newly registered diesel cars.

For cars registered from April 1st 2017

All cars first registered between 1st April 2017 and 31st March 2025 will pay the standard annual road tax rate, which increases to £195 per year from 1st April 2025.

If your car has a list price exceeding £40,000, you’ll also pay an annual ‘expensive car supplement’ between the second and sixth years of ownership.

This charge will increase to £425 for the 2025/26 tax year (from the 2024/25 rate of £410) - and will also apply to eligible new EVs registered from 1st April 2025.

However, the supplement won’t be applied retroactively to EVs registered before this time.

Unfortunately, it is not possible to avoid the expensive car supplement threshold by negotiating a lower price at the dealership. ‘List price’ refers to the fixed recommended retail price (RRP) set by the manufacturer. If this price exceeds £40,000, you’ll be liable to pay the supplement.

• Standard road tax rate 2025/26 (all car types) - £195
• Expensive car supplement 2025/26 - £425
• Standard road tax + expensive car supplement - £620

For cars registered between 1st March 2001 to 31st March 2017

Cars registered from 1st March 2001 to 31st March 2017 are taxed according to their CO2 emissions level and fall into one of the following 13 bands:

*Band K includes cars producing over 225 g/km registered prior to 23rd March 2006.

For cars registered before 1st March 2001

Cars registered prior to 1st March 2001 are classed as private/light goods (PLG) vehicles, private motor cars, or good vehicles not more than 3,500kg revenue weight.

They are taxed based on engine size rather than CO2 emissions:

What is road tax – and why do I have to pay it?

Road tax is a mandatory annual tax that applies to most vehicles that are driven or parked on UK roads.

The money collected goes to the Exchequer and may be spent on a variety of public services and amenities, such as hospitals, police forces and community projects, in addition to road works and maintenance.

Responsibility for the upkeep of UK roads lies with the Department of Transport, who distribute money allocated to them by the Exchequer to the Highways Agency (who maintain the UK’s strategic road network) and local authorities (who are responsible for the maintenance of all roads except motorways and significant A-roads).

Car tax exemptions

From April 1st 2025, road tax exemption for EVs will end. However, there are still some circumstances in which drivers are exempt from car tax:

• Drivers with disabilities

  You can apply for exemption from vehicle tax if you are in receipt of:

  • The higher rate mobility component of Disability Living Allowance.
  • The higher rate mobility component of Child Disability Payment.
  • The enhanced rate mobility component of Personal Independence Payment (PIP).
  • The enhanced rate mobility component of Adult Disability Payment (ADP).
  • Armed Forces Independence Payment.
  • War Pensioners’ Mobility Supplement.

  You can also apply for a 50% vehicle tax reduction if you are in receipt of:

  • The standard rate mobility component of Personal Independence Payment (PIP).
  • The enhanced rate mobility component of Adult Disability Payment (ADP).

  Please visit the ‘Financial help if you’re disabled’ section of the gov.uk website for more information.

• Historic cars

  Most cars over 40 years old are eligible for exemption from car tax. However, this is not automatic; you must apply once your car meets the eligibility criteria.

  Please visit our guide to classic car tax exemption for a more detailed explanation.

• SORN cars

  If you make a SORN (Statutory Off-road Notification) for your vehicle, you will no longer be required to pay road tax on the vehicle.

  You will also be eligible for a car tax refund from the DVLA if you have any full months’ car tax remaining.

Benefit-in-Kind (BiK) tax rates from 2024/25 to 2029/30

Benefit-in-kind (BiK) is a tax levied on employees who receive perks such as company cars from their employer. BiK tax on company cars is based on the vehicle’s list price (or P11D value) and its CO2 emissions.

The rates are set by HMRC and vehicles in lower emissions bands, such as electric cars, attract lower BiK rates, offering tax advantages to employees.

The table below shows the BIK company car tax rates for the years ahead. The rates for the 2028/29 and 2029/30 tax years were announced in the Government’s 2024 Autumn Budget:

Please note: A 4% surcharge will be applied to any diesel vehicles that do not meet the RDE2 standard.

Richard Evans, webuyanycar’s head of technical services said:

The future BiK car tax rates show that the UK Government is continuing to incentivise drivers to switch to EVs.

Company car tax rates for EVs will remain significantly lower than petrol and diesel vehicles. Hybrid drivers will also initially benefit from favourable rates, but these will increase significantly as we approach 2030, especially for shorter-range models.

Despite the increases in the coming years, EVs are the most tax-efficient choice by a clear margin, reinforcing the Government’s commitment to driving electrification.

How to pay your road tax

You can tax your car online via the gov.uk website. You’ll need a reference number from one of the following documents:

• A V11 reminder.
• Your V5C logbook (it must be in your name).
• The green V5C/2 ‘new keeper supplement’ (if you have just bought the car).

Please note: If you don’t have any of these documents, you’ll need to order a replacement V5C logbook by completing a V62 form.

Taxing your car online via the GOV.UK website is the fastest and easiest method. See our 'How to tax your car' step-by-step guide for more information.

Car tax fines and penalties

You may face the following fines and penalties if you drive or park an untaxed car on public highways:

• If caught driving an untaxed car, you could be fined up to £1,000.
• If you fail to pay a car tax fine, the case could be escalated to a magistrates’ court – and you may be liable to pay a penalty of £1,000 or five times the initial penalty amount (whichever is higher).
• You may face a £2,500 penalty if caught driving or parking an untaxed vehicle on a public highway whilst you have a statutory off road notification (SORN) in place.
• Your vehicle may also be clamped, in which case, a £100 release fee will apply for the first 24 hours. Once your vehicle has been removed, the release fee will increase to £200, together with a storage fee of £21 for each day your vehicle is impounded.

Our guide ’Driving without tax’ explains this topic in more detail.

How often do you need to tax your car?

Road tax must be paid annually.

When your new car is first registered, you must pay for 12 months’ road tax upfront. This is known as the ‘showroom tax’. This tax must be paid before you can legally drive the vehicle away.

After this, you can choose to pay your road tax monthly or in 6- or 12-month periods at different rates.

If you pay by Direct Debit, your next payment will automatically be taken when a new tax year starts. However, if you paid by credit/debit card, it’s your responsibility to set up a new payment.

How does the DVLA monitor road tax?

The DVLA keeps all road tax records on an electronic database.

Modern speed cameras (including those mounted to police cars) are fitted with Automated Number Plate Recognition (ANPR) technology. This allows them to instantly check the DVLA’s database to determine whether passing cars are taxed.

Road tax and selling your car

In 2014, the physical tax disc system was disbanded – and the car tax system was brought online, meaning it was no longer possible to transfer outstanding road tax when selling a car.

When you buy a car, you must tax it before driving away. If you sell your car, you must notify the DVLA – and you can also claim a car tax refund for any full months’ unused cover.

Frequently Asked Questions