New VED road tax rates for 2025/26 from 1 April

Road tax rates are going up on 1 April for most cars, but how much more will you be paying in 2025 and into 2026 now that Chancellor Rachel Reeves has delivered her Autumn Budget on Wednesday October 31. Find out here as motoring journalist and expert Pete Barden reveals the new VED road tax rates you will need to pay on cars, vans and motorcycles from April 1 2025

Scroll down for new car tax charges and changes for 2025/26 according to the Government's rates and allowances.

Most drivers will need VED for their vehicles and it will be going up again on 1 April 2024 - find out the details here  (Credit: Pixabay)

How much will road tax (VED) go up on April 1, 2025 - bad  news for hybrid owners

• Click here for full list of new VED rates for 25/26 from April 1

Starting from April 1, 2025, the UK's Vehicle Excise Duty (VED) rates for new cars are set for a major overhaul, with significant increases in first-year rates for certain vehicle emissions categories. The government explains these changes as a way to "strengthen incentives" for choosing zero-emission and electric vehicles by expanding the cost differences between electric, hybrid, and internal combustion engine (ICE) vehicles.

Hybrid hike

One of the most notable adjustments is the eye-watering rise in first-year tax for vehicles with emissions between 1-50g/km of CO₂ - a group of cars that includes most hybrids. The rate for these vehicles will soar from £10 (or zero for hybrids) to £110. This increase will impact a large number of plug-in hybrid models in this category.

For cars emitting between 51-75g/km of CO₂, rates will also rise, going from £30 (or £20 for hybrids) to £135. All other rates will double next year, which means that, for example, the owner of a new VW Golf 1.5 TSI will face an additional £220 in first-year costs. In comparison, a new BMW X5 M60i will incur a significant increase of £2,745 for its first-year rate.

'Expensive' electric car hike possible

Beyond the initial year, standard VED rates will continue to increase in line with the Retail Price Index (RPI), as per usual practice. The government has indicated that it might raise the threshold for the Expensive Car Supplement for electric vehicles, but only in a future budget. Currently, any car with a new price over £40,000 is subject to an additional £410 in annual VED for five years after registration.

Additionally, Benefit-in-Kind (BIK) tax rates for company cars will remain at 2% through to 2026, and double-cab pickup trucks will continue to be taxed under their current classification.

VED (road tax) rates from April 1, 2025 

Here is how much VED road tax will be charged from April 1, 2025  after the Autumn Budget 30 October, 2024.

Look out for  a huge rise paid for those driving hybrid vehicles. 

CO2 emissions (g/km)	Standard rate	First year rate
0	195	10
1 to 50	195	110
51 to 75	195	130
76 to 90	195	270
91 to 100	195	350
101 to 110	195	390
111 to 130	195	440
131 to 150	195	540
151 to 170	195	1,360
171 to 190	195	2,190
191 to 225	195	3,300
226 to 255	195	4,680
Over 255	195	5,490

New car tax (vehicle excise rates, VED) 1 April, 2023 - 31 March, 2024

In his Spring Budget back in March, Chancellor Jeremy Hunt confirmed an increase in VED rates for cars, vans and motorcycles in line with RPI from 1 April 2023. However, to help support the haulage sector, VED for HGVs will remain frozen for 2023-24.

Standard road tax (VED) from 1 April, 2023 - 31 March, 2024

The vehicle excise duty increased by RPI, which is 10.1%, and is rounded to the nearest £1 or £5. Standard rate road tax (VED) has increased from £165 to £180.00. 

First-year and 'luxury' car tax from 1 April, 2023 - 31 March, 2024

Does the road tax rate rise apply to diesel and petrol cars?

Yes. The RPI-related hike to VED has been applied to both petrol and diesel vehicles since 1 April 2022.

How much car tax will I have to pay this year?

The amount of road tax that you will have to pay depends entirely on how ‘green’ your car is – judged by the CO2 emissions that it pumps out of the exhaust pipe. See the bands below to match your car to a band.

How do I find out my car's emissions to see what band it is in?

There are various methods, but an easy way is to check online using this Gov.UK tool to find your car's emissions.

Road tax (Vehicle Excise Duty) charges from 1 April, 2023 - 31 March, 2024

These are the new road tax (VED) prices you will be asked to pay for 2023/2024.

Cars first registered on or after April 1 2017: First year road tax rates and standard VED from 1 April 2023 - 31 March 2024

Your vehicle emits 0g/km:

You will pay £0 for the first-year rate

Your vehicle emits 1-50g/km:

First-year road tax rates will remain at £10

Standard VED rate increases from £165 to £180

Your vehicle emits 51-75g/km:

First-year road tax will remain at £30

Standard VED rate increases from £165 to £180

Your vehicle emits 76-90g/km:

First-year road tax rates will increase from £120 - £130

Standard VED rate increases from £165 to £180

Your vehicle emits 91-100g/km:

First-year road tax rates will increase from £150 to £165

Standard VED rate increases from £165 to £180

Your vehicle emits 101-110g/km:

First-year road tax rates will increase from £170 to £185

Standard VED rate increases from £165 to £180

Your vehicle emits 111-130g/km:

First-year road tax rates will increase from £190 to £210

Standard VED rate increases from £165 to £180

Your vehicle emits 131-150g/km:

First-year road tax rates will increase from £230 to £255

Standard VED rate increases from £165 to £180

Your vehicle emits 151-170g/km:

First-year road tax rates will increase from £585  to £645

Standard VED rate increases from £165 to £180

Your vehicle emits 171-190g/km:

First-year road tax rates will increase from £945 to £1,040

Standard VED rate increases from £165 to £180

Your vehicle emits 191-225g/km:

First-year road tax rates will increase from £1,420 to £1,565

Standard VED rate increases from £165 to £180

Your vehicle emits 226-255g/km:

First-year road tax rates will increase from £2,015 to £2,220

Standard VED rate increases from £165 to £180

Your vehicle emits over 255g/km:

The first-year rate for these vehicles will increase from £2,365 to £2,605

Standard VED rate increases from £165 to £180

Cars first registered on or after March 1 2001 - 31 March 2017

Band A: VED will remain the same at 0.

Band B: Standard rate will remain the same at £20.

Band C: Standard rate will remain the same at £35.

Band D: Standard rate £150.

Band E: Standard rate £180.

Band F: Standard rate £200.

Band G: Standard rate £240.

Band H: Standard rate £290.

Band I: Standard rate £320.

Band J: Standard rate £365.

Band K: Standard rate £395.

Band L: Standard rate £675.

Band M: Standard rate £695.

How much is the £40,000-plus car tax surcharge (1 April, 2023 - 31 March, 2024) 

This is a VED surcharge that must be paid on cars that cost more than £40,000 when new. It was previously set at £335 but subsequently increased to £390 on 1 April 2023.

This surcharge must be paid each year on top of the standard flat rate of VED. Owners will need to pay it for five years from the second year of registration. When the car reached six years old, it falls back to the standard flat rate. It’s worth noting that zero-emission cars do not pay this charge.

Do I have to pay road tax?

On the whole, yes, but there are a few exceptions that could mean you – or more importantly your vehicle – are exempt from paying vehicle excise duty. These include the following:

• Your new car has zero CO2 emission from the tailpipe and comes with a list price of less than £40,000.
• Your car is more than 40 years old. If you own a vehicle that was registered before 1 January 1983 then it will likely be exempt from paying road tax. You must confirm this with the DVLA. Additionally, if you do not know when your vehicle was built, but it was first registered before 8 January 1983, you can also apply to stop paying vehicle tax. If your vehicle is exempt, you will need to apply to have the exemption made official and not just assume you can drive without letting the DVLA know. You can apply for exemption here.
• Some drivers with disabilities can also register as being exempt from paying VED. More information can be found here on road tax exemption for drivers with disabilities.

What tax band is my car in by reg?

You may not be able to find the tax band of your car just by its registration number, but you can find out the exact amount of tax you will need to pay for a vehicle by entering the 11-digit reference number found on its V5C log book. Simply get the V5C reference number and enter it to the this Gov.UK page to get the exact amount of road tax you will pay - and how much annual, six-monthly, or monthly charges for VED will be. 

What tax band is a new unregistered car in? How to find out

The Government has a tool that can help you find out what tax band your existing car or a new vehicle is in. The tool is free to use and can be accessed 24 hours a day for ease of information. Use this tool here to find out what tax band a car is in and how much it will cost at the time of checking.

Do you pay road tax on electric cars?

While road tax, or as it is officially known as VED, or vehicle excise duty is paid on all conventional cars - and hybrid cars now - fully electric cars are currently exempt from paying any road tax at all. 

However, Chancellor Jeremy Hunt has already confirmed that electric car owners will have to pay road tax - or Vehicle Excise Duty (VED) as it is officially known - from April 2025. 

Chancellor Hunt justified the new tax by saying: "Because the OBR (Office for Budget Responsibility) forecast half of all new vehicles will be electric by 2025, to make our motoring tax system fairer I've decided that from then, electric vehicles will no longer be exempt from vehicle excise duty."

Business car tax rates will also get a discount for those using electric vehicles.

Currently, zero-emissions vehicles do not have to pay the £165 standard rate of road tax or the £335 supplement that cars costing more than £40,000 are charged, but with the huge increase in such cars being purchased, the chancellor will be aware of Treasury predictions the drivers turning to electric cars could cost £7billion in lost tax revenues.

Electric car road tax VED rates from April 2025

• new zero emission cars registered on or after 1 April 2025 will be liable to pay the lowest first year rate of VED (which applies to vehicles with CO2 emissions 1 to 50g/km) currently £10 a year. From the second year of registration onwards, they will move to the standard rate, currently £165 a year
• zero emission cars first registered between 1 April 2017 and 31 March 2025 will also pay the standard rate
• the Expensive Car Supplement exemption for electric vehicles is due to end in 2025. New zero emission cars registered on or after 1 April 2025 will therefore be liable for the expensive car supplement. The Expensive Car Supplement currently applies to cars with a list price exceeding £40,000 for 5 years
• zero and low emission cars first registered between 1 March 2001 and 30 March 2017 currently in Band A will move to the Band B rate, currently £20 a year
• zero emission vans will move to the rate for petrol and diesel light goods vehicles, currently £290 a year for most vans
• zero emission motorcycles and tricycles will move to the rate for the smallest engine size, currently £22 a year
• rates for Alternative Fuel Vehicles and hybrids will also be equalised

Car tax bands 2023/24 at-a-glance guide to your road tax

Here are a quick reference set of tables to show how much car tax you are likely to be paying in 2023/24 after 1 April whatever you are driving.

CO2 emissions	First Year Rate from 1 April 23	Std Rate from 1 April 2023
0 g/km	£0	£0
1 to 50 g/km	£10	£180
51 to 75 g/km	£30	£180
76 to 90 g/km	£130	£180
91 to 100 g/km	£165	£180
101 too 110 g/km	£185	£180
111 to 130 g/km	£210	£180
131 to 150 g/km	£255	£180
151 to 170 g/km	£645	£180
171 to 190 g/km	£1,040	£180
191 to 225 g/km	£1,565	£180
226 to 255 g/km	£2,220	£180
Over 255 g/km	£2,605	£180

Vehicle Excise Duty bands and rates for cars and vans registered before 1 March 2001

Engine size	Tax year 2022 to 2023	Tax year 2023 to 2024
1549cc and below	180	200
Above 1549cc	295	325

Vehicle Excise Duty bands and rates for vans registered on or after 1 March 2001

Vehicle registration date	Tax year 2022 to 2023	Tax year 2023 to 2024
Early Euro 4 and Euro 5 compliant vans	140	140
All other vans	290	320

Vehicle Excise Duty bands and rates for motorcycles

Engine size	Tax year 2022 to 2023	Tax year 2023 to 2024
Not over 150cc	22	24
151cc and 400cc	47	52
401cc to 600c	73	80
Over 600cc	101	111

How can I pay less for my car tax?

Many people pay for their car tax in monthly instalments across the year, but using this method can mean you pay more. Taking a one-off hit of paying the full annual amount will mean you pay less as car tax rates increase for 2022/23. 

Paying for your car tax (VED) monthly or every six months attracts a surcharge of 5%. So, for example, if your vehicle emits 131-150g/km you will pay an extra £11.50 a year for first-year tax with instalments compared to a yearly payment, or an extra £118.25 for vehicles emitting over 255g/km (these are based on 2022/23 figures).

What pre-March 2017 cars will get free road tax?

If you want to cut your motoring costs in 2023/24, buying a pre-March 2017 car with emissions less than 100g/km will attract zero road tax. This will include the likes of the Peugeot 107 will qualify for zero road tax and also ensure you’re not hit by taxes such as the ULEZ and other schemes across the UK. You can pick up a decent car that emits less than 100g/km for around £1,500. Have a search now.

Check if road tax is valid on a car now 

Now that vehicles do not need to display a tax disc, drivers can find out if their vehicle is currently taxed by using a free online check provided by the government. Check if your vehicle is taxed here.

Will Benefit in Kind rates also be going up for company car drivers?

Company car tax — all cars

CO2 emissions, g/km	Electric range (miles)	Appropriate percentage (%) for 2022 to 2023	Appropriate percentage (%) for 2023 to 2024	Appropriate percentage (%) for 2024 to 2025	Appropriate percentage (%) for 2025 to 2026	Appropriate percentage (%) for 2026 to 2027	Appropriate percentage (%) for 2027 to 2028
0	Not applicable	2	2	2	3	4	5
1 to 50	More than 130	2	2	2	3	4	5
1 to 50	70 to 129	5	5	5	6	7	8
1 to 50	40 to 69	8	8	8	9	10	11
1 to 50	30 to 39	12	12	12	9	10	11
1 to 50	Less than 30	14	14	14	15	16	17
51 to 54	-	15	15	15	16	17	18
55 to 59	-	16	16	16	17	18	19
60 to 64	-	17	17	17	18	19	20
65 to 69	-	18	18	18	19	20	21
70 to 74	-	19	19	19	20	21	21
75 to 79	-	20	20	20	21	21	21
80 to 84	-	21	21	21	22	22	22
85 to 89	-	22	22	22	23	23	23
90 to 94	-	23	23	23	24	24	24
95 to 99	-	24	24	24	25	25	25
100 to 104	-	25	25	25	26	26	26
105 to 109	-	26	26	26	27	27	27
110 to 114	-	27	27	27	28	28	28
115 to 119	-	28	28	28	29	29	29
120 to 124	-	29	29	29	30	30	30
125 to 129	-	30	30	30	31	31	31
130 to 134	-	31	31	31	32	32	32
135 to 139	-	32	32	32	33	33	33
140 to 144	-	33	33	33	34	34	34
145 to 149	-	34	34	34	35	35	35
150 to 154	-	35	35	35	36	36	36
155 to 159	-	36	36	36	37	37	37
160 and over	-	37	37	37	37

See more vehicle rates here

How can I get a road tax refund?

Remember, you cannot sell a car with road tax, so you will need to get a refund on the remaining months if you do not want to lose the money. Here is our easy to follow guide to get your road tax refund.

I don't drive my car - do I have to pay road tax?

If you never drive your car and you have a private driveway, or other non-public space to store it, you do not need to pay road tax on the vehicle. However, it must not be used on a public road or space at all. Additionally, you will need to let the DVLA know that this is the case by obtaining a Statutory Off-Road Notification - aka a  SORN. You can apply for a SORN here.

How is the annual increase in VED Road Tax decided?

The Chancellor combines various elements from inflation to roads policy and vehicle emissions when deciding how much to increase the amount drivers pay for VED - or road tax as most know it. Here are some of the considerations that apply. 

1. Vehicle Emissions: VED rates in the UK are often linked to a vehicle's CO2 emissions. Vehicles emitting lower levels of CO2 are placed in lower tax bands, while those with higher emissions face higher tax rates. The goal is to incentivize the use of vehicles with lower environmental impact.

2. Inflation: VED rates can be subject to periodic adjustments to account for inflation. The rates may increase in line with the Retail Price Index (RPI) to maintain their real value over time.

3. Budgetary Considerations: Changes to VED rates can be influenced by the government's broader budgetary needs and priorities. Adjustments may be made to generate additional revenue or to align with the government's fiscal policies.

4. Public Policy Goals: VED rates are often used to support broader public policy objectives, such as reducing air pollution and promoting the adoption of greener vehicles. The government may adjust rates to encourage the purchase of electric or low-emission vehicles.

5. Vehicle Type: The type of vehicle, including fuel type and whether it's a private car or a commercial vehicle, can impact the VED rate.

6. Government Announcements: Changes to VED rates are typically announced as part of the annual budget speech delivered by the Chancellor of the Exchequer. The proposed changes would then be subject to parliamentary approval.

 

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