Car Tax Bands & VED Rates 2025: What Tax Band Is My Car?
Car tax bands, also known as Vehicle Excise Duty (VED) rates, determine how much you pay to tax your car in the UK.
These bands are primarily based on your vehicle’s CO₂ emissions, meaning higher emissions result in higher tax costs.
Understanding what tax band your car is in is essential, as it directly impacts your running costs, annual budget, and environmental footprint.
In this 2025 guide, we break down how car tax bands are calculated, reveal this year’s VED rates, and help you quickly answer the key question: what tax band is my car?
What are Car Tax Bands?
Car tax bands calculate how much you pay each year for Vehicle Excise Duty (VED), also known as road tax.
The amount you pay depends mainly on your car's CO₂ emissions. Vehicles that produce less CO₂ are taxed at a lower rate, while vehicles with higher emissions face higher taxes.
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How are Car Tax Rates Calculated?
Car tax rates are determined by several factors: CO2 emissions, vehicle age, fuel type, and engine size.
These elements are used to calculate the Vehicle Excise Duty (VED), or road tax, you must pay each year.
Below, we explore how these factors influence your car’s tax band and overall cost.
Use our free Car Tax Calculator and See How Much Your Road Tax is.
CO2 Emissions and Tax Bands
CO2 emissions are the main factor in determining your car's tax band.
The government uses these emissions to encourage cleaner, more environmentally friendly vehicles.
Cars that emit less CO2 are placed in lower tax bands, meaning they cost less to tax.
Conversely, vehicles with higher emissions are placed in higher bands and incur higher tax charges.
For example, a car that emits 100g/km of CO2 might fall into a lower tax band, while a vehicle emitting 200g/km could fall into a higher band.
Government policies aim to reduce emissions, so cars with lower emissions are often taxed at a lower rate to promote eco-friendly driving.
Vehicle Age and Taxation
The age of your car can also affect its tax rate.
Newer vehicles tend to have lower CO2 emissions and may fall into cheaper tax bands, whereas older cars, especially those registered before 2001, can face higher taxes due to higher emissions.
Older vehicles often produce more CO₂ and therefore fall into higher tax bands.
Newer cars, designed to meet stricter emission standards, typically face lower taxes.
For example, a 10-year-old vehicle may have a higher tax rate than a newer model, even if both have similar engine sizes.
The government offers tax exemptions or reductions for classic cars older than 40 years, encouraging the preservation of vintage vehicles.
Fuel Type and Tax Bands
Different fuel types influence car tax bands, as they can directly impact CO2 emissions.
Here’s how the fuel type can affect your tax rate:
- Petrol: Typically, petrol cars emit less CO2 than diesel cars, so they usually fall into lower tax bands.
- Diesel: Diesel cars often produce more CO2, and with stricter emissions standards in place, they may fall into higher tax bands, especially if they are older models.
- Electric: Electric cars produce zero CO₂ emissions, and while they previously qualified for full exemption, from April 2025, they pay a first-year tax based on emissions (typically at the lowest rate) and a standard annual rate from the second year onwards.
- Hybrid: Hybrid cars, which combine petrol and electric power, are typically more fuel-efficient and have lower emissions than purely petrol or diesel vehicles.
Depending on their CO2 output, they may fall into a lower tax band than a conventional petrol or diesel car.
The fuel type of a vehicle directly influences its CO₂ emissions, which then determines its tax band.
This is why electric and hybrid vehicles usually fall into lower tax bands than petrol and diesel cars.
What are the Current Car Tax Bands?
In the UK, car tax (Vehicle Excise Duty or VED) is determined by your vehicle's CO2 emissions.
The amount you pay depends on which emissions band your car falls into.
Below is a summary of the current VED rates for 2025, including the upcoming changes that will take effect from April 2025.
New VED Rates from April 2025
From April 2025, the UK government updated the VED system to further support environmental goals.
Here’s an overview of the new rates:
1. VED Rates Based on CO2 Emissions
Your car’s CO2 emissions directly affect your VED rate.
The higher the emissions, the higher the tax.
Here is a breakdown of the 2025 tax bands:
CO2 Emissions (g/km) | First-Year Tax Rate (2025) |
|---|---|
0 g/km (Electric) | £0 |
1-50 g/km | £10 |
51-75 g/km | £30 |
76-90 g/km | £135 |
91-100 g/km | £175 |
101-110 g/km | £195 |
111-130 g/km | £220 |
131-150 g/km | £270 |
151-170 g/km | £680 |
171-190 g/km | £1,095 |
191-225 g/km | £1,650 |
226-255 g/km | £2,220 |
255+ g/km | £2,745 |
2. Electric and Hybrid Cars
Electric Cars (EVs): From April 2025, fully electric cars are no longer exempt from VED.
They pay a first-year tax based on their emissions (currently £0 for 0 g/km) and a standard annual rate from the second year onwards.
Plug-in Hybrids (PHEVs): Plug-in hybrids are taxed based on their CO₂ emissions using the same first-year rates as petrol and diesel cars.
From the second year, they also pay the standard annual rate.
Note: Exact rates depend on your car’s CO₂ emissions band. Refer to the emissions table above for full details.
3. Luxury Car Tax
Cars with a list price over £40,000 continue to attract an additional annual charge of £410 for the first five years after registration, on top of the standard VED.
Car Price (over £40,000) | Extra Annual Charge (2025) |
|---|---|
£40,000 | £410 per year for 5 years |
4. Older Cars (Pre-2001)
For vehicles registered before 2001, the VED is based on engine size rather than CO2 emissions. The tax rates for these older cars are higher and vary based on the engine size.
Engine Size (cc) | Annual Tax Rate (2025, for Pre-2001 Vehicles) |
|---|---|
Up to 1549cc | £200 |
Over 1549cc | £325 |
How These Changes Affect You
Low-Emission Cars: Owners of electric or hybrid cars will continue to benefit from lower first-year tax rates compared to higher-emission vehicles.
From April 2025, electric cars pay a first-year tax based on emissions (currently £0 for 0 g/km) and a standard annual rate from the second year onwards.
Plug-in hybrids are taxed based on their CO₂ emissions using the same first-year bands as petrol and diesel cars.
High-Emission Cars: Cars with higher CO₂ emissions will face significantly higher first-year taxes, especially those emitting over 225 g/km, paying up to £2,745.
High-emission cars pay a higher first-year tax as a direct consequence of their greater environmental impact.
This approach is designed to discourage the use of high-emission vehicles and promote cleaner alternatives.
Luxury Cars: Cars that cost over £40,000 include an extra £410 annual charge for the first five years after registration.
How to Find Your Vehicle’s Tax Band
Finding your vehicle’s tax band is essential to understanding how much Vehicle Excise Duty (VED) you must pay.
The tax band is based on factors like CO2 emissions, engine size, and fuel type.
Fortunately, there are easy ways to check which tax band your vehicle falls into using online tools and government resources.
Conduct a Free UK Car Check - Verify MOT, Tax, Finance & History
Using the DVLA Vehicle Check Tool
The DVLA’s Vehicle Check Tool is a simple and reliable way to find out your car’s tax band and other related details.
Here’s how you can use it:
- Visit the DVLA’s Vehicle Check Tool: Go to the official DVLA website’s Vehicle Check page.
- Enter Your Vehicle Registration Number: You’ll be asked to enter your car's registration number (also known as the number plate). This is the unique identifier for your vehicle.
- Review Vehicle Information: Once you enter your registration number, the tool will provide you with detailed information about your vehicle, including:
- The current tax status (whether it is taxed or not).
- The vehicle’s CO2 emissions and the corresponding tax band.
- The annual VED rate for your car.
- Understand the Tax Band: The result will show you the emissions-based tax band your vehicle falls into. This tells you how much tax you need to pay each year.
- Check for Updates: The DVLA tool helps you check for any outstanding tax payments, MOT status, and any issues related to your vehicle.
FAQs About Car Tax Bands
Your road tax (VED) is based on your car’s CO₂ emissions for the first year and a standard annual rate from the second year onwards. Electric vehicles (0 g/km CO₂) currently pay £0 in the first year and then a standard rate each year after. Low-emission cars (for example, 1–50 g/km CO₂) may pay as little as £10 in the first year, while high-emission vehicles (over 255 g/km CO₂) can pay up to £2,745.
Use the DVLA Vehicle Check Tool online to find your vehicle's tax class. Alternatively, check your V5C registration document, which lists your car’s CO2 emissions and assigned tax band.
Not all cars pay road tax. Historic vehicles (over 40 years old) and vehicles used by disabled people may be exempt from road tax. From April 2025, electric cars are no longer exempt and are taxed based on their emissions.
How to Pay and Manage Car Tax
Paying Car Tax Online
To pay your car tax online:
- Visit the DVLA website.
- Enter your vehicle registration number and 11-digit reference number from your V5C (logbook).
- Choose your payment method: Debit/Credit card or PayPal.
- Confirm payment details and complete the transaction.
You will receive an instant confirmation, and your tax will be updated.
Setting Up a Direct Debit for Car Tax
To set up a direct debit for your car tax:
- Go to the DVLA website and select the Direct Debit option.
- Enter your vehicle details and payment preferences (monthly or annually).
- Provide your bank details for recurring payments.
Benefits include automated payments, which ensure you never miss a payment. You can manage or cancel the direct debit online.
What Happens If You Don’t Pay Your Car Tax on Time?
Failing to pay car tax on time can lead to penalties and legal consequences:
- Late payment fines: A £10 fine for late payments.
- Vehicle clamping or impounding: The DVLA can clamp or impound your vehicle.
- Court action: If unpaid for an extended period, you may face court action and higher fines.
To avoid penalties, always pay on time or set up a Direct Debit.
How are Car Tax Bands Changing in the Future?
The future of car tax bands is likely to evolve because of stricter environmental regulations, advancements in electric and autonomous vehicle technologies, and government policies aiming to reduce carbon emissions.
Government policy encourages the use of lower-emission vehicles by offering tax reductions and incentives.
These measures aim to reduce overall emissions and accelerate the shift to more sustainable transport options.
The Impact of Electric Vehicles on Tax Bands
The rise of electric vehicles (EVs) is already reshaping car tax bands.
From April 2025, EVs will not be exempt and must pay VED based on their emissions.
In the future, we may see additional adjustments to encourage greener choices, such as further tax increases on high-emission vehicles or expanded grants and subsidies for EV adoption and charging infrastructure.
How Autonomous Vehicles Could Change Taxation
The development of autonomous vehicles (AVs) could lead to new challenges in vehicle taxation:
- New tax categories: Governments may introduce specific tax bands for autonomous vehicles depending on their level of automation and environmental impact.
- Data collection and monitoring: With AVs, road tax might be tied to data about vehicle usage, mileage, or emissions.
- Regulatory complexities: As AVs interact with existing infrastructure, tax policies may have to adapt to cover new safety features and technologies.
Contact CarVeto for Help with Car Tax Questions
For any questions about your car tax band or help with managing your vehicle’s tax status, contact CarVeto.
Our experts are here to guide you through the process and help you navigate any tax-related concerns you may have.