Used Car Tax Calculator
Calculate your Vehicle Excise Duty (VED) instantly with our comprehensive UK road tax calculator
Calculate Your Car Tax
How Car Tax Works in the UK
Vehicle Excise Duty (VED), commonly known as car tax or road tax, is a tax levied on motor vehicles in the United Kingdom. The amount you pay depends on when your car was first registered, as the government has changed the system several times over the years.
The Three Tax Systems
Cars Registered Before March 2001
For older vehicles, the tax system is straightforward and based purely on engine size:
| Engine Size | Annual Tax (12 months) | 6 Month Tax |
|---|---|---|
| Up to 1549cc | £220 | £121 |
| Over 1549cc | £360 | £198 |
Cars Registered March 2001 – March 2017
This system introduced emissions-based taxation with 13 bands from A to M. Lower emissions result in lower tax rates:
| Band | CO₂ Emissions (g/km) | Annual Tax |
|---|---|---|
| A | Up to 100 | £20 |
| B | 101-110 | £20 |
| C | 111-120 | £35 |
| D | 121-130 | £165 |
| E | 131-140 | £195 |
| F | 141-150 | £210 |
| G | 151-165 | £255 |
| H | 166-175 | £305 |
| I | 176-185 | £335 |
| J | 186-200 | £385 |
| K | 201-225 | £415 |
| L | 226-255 | £710 |
| M | Over 255 | £735 |
Cars Registered April 2017 Onwards
The newest system features two rates: a higher first-year rate based on emissions, then a flat standard rate of £195 per year. However, expensive cars (over £40,000 when new) pay an additional supplement.
The Expensive Car Supplement
Cars with a list price exceeding £40,000 when new must pay an additional £425 per year for five years (from the second to sixth year of ownership). This applies regardless of what you actually paid for the car.
Key points about the expensive car supplement:
- Based on the manufacturer’s list price, not what you paid
- Applies even if you bought the car second-hand
- Payable for years 2-6 only (total extra cost: £2,125)
- Now applies to electric cars registered from April 2025
- Combined with standard rate means £620 total annual tax
Payment Options
You can pay your car tax in several ways:
- Annual payment: Full year upfront – most economical option
- Six monthly: Two payments per year – slightly more expensive
- Monthly Direct Debit: 12 monthly payments – most expensive but spreads cost
Monthly payments include a 5% surcharge, making the total cost £204.75 instead of £195 for the standard rate.
Frequently Asked Questions
Do I need to pay car tax if I’m not driving my car?
Yes, you must pay car tax if your vehicle is parked on public roads, even if you’re not using it. You can apply for a Statutory Off Road Notification (SORN) if the vehicle is kept on private land and not used on public roads.
What happens if I don’t pay my car tax?
Driving without valid car tax can result in a £80 fixed penalty notice. If the case goes to court, you could face a maximum fine of £1,000. The DVLA also has powers to clamp, remove, or dispose of untaxed vehicles.
Can I get a refund on my car tax?
Yes, you can get a refund for complete unused months if you sell your car, take it off the road (SORN), or if it’s stolen or scrapped. Refunds are calculated from the date DVLA receives your application, not when you stopped using the vehicle.
How do I find out my car’s CO₂ emissions?
Check your vehicle registration certificate (V5C) where the CO₂ emissions are listed. You can also find this information on the manufacturer’s specifications or by entering your registration number on the DVLA website.
Are electric cars really no longer exempt from car tax?
Correct. From April 2025, electric cars pay £10 for their first year and £195 annually thereafter. Electric cars over £40,000 also pay the expensive car supplement. Only electric cars registered before April 2025 continue to pay £0 annual tax.
Changes Coming in 2025
Significant changes to Vehicle Excise Duty came into effect on 1st April 2025:
- First-year rates doubled for most petrol and diesel cars
- Electric cars now pay car tax (£10 first year, £195 annually)
- Hybrid car discount removed
- Expensive car supplement increased to £425
- Standard rate increased to £195 for all cars
These changes represent the most significant overhaul of the car tax system since 2017 and affect both new and existing vehicle owners.