A guide to car tax bands

Car tax is an annual tax applied to most vehicles that are driven or kept on public roads. Car tax is a legal requirement for your car under the Vehicle Excise and Registration Act 1994. If your vehicle isn’t taxed, then you must make sure you declare it as off-road using a Statutory Off Road Notification (SORN) to avoid penalties. ^{Footnote [1]} Driving without valid car tax is a criminal offence. Penalties include:

• £80 late licensing penalty (or £40 if paid within 33 days)
• Out-of-court settlements from £30 plus 1.5 times the car tax owed
• Court fines up to £1,000 or five times the tax due, and your vehicle could be clamped or impounded. ^{Footnote [2]}  

Although some call it ‘road tax’, it doesn’t pay for road repairs. Essentially it's a tax on vehicle ownership. For example:

• Cars registered on or after 1 April 2017 pay a first-year rate based on emissions, followed by a flat annual rate. 
• Older vehicles follow different banding rules, often based on engine size or emissions. ^{Footnote [3]}  

If you want to check when your car tax is due, check out our tax checker tool. 

Car tax bands aren’t straightforward. What you pay depends on several factors: your car’s age, emissions, and even its price tag. There are also three systems when categorising what car tax band you might be in:

• Cars registered pre-2001: Tax was based on engine size:
  • Up to 1,549cc – lower rate
  • Over 1,549cc – higher rate 
• Cars registered 2001-2017: CO2 based bands (A-M). Lower emissions meant lower tax.
• Cars registered post-2017: 
  • First-year rate: Based on CO2 emissions (often called the ‘showroom tax’)
  • Standard rate: A flat annual fee from year two onwards. ^{Footnote [3]}  

There are also additional exceptions for things like how much your car is worth. So, if your car’s list price is more than £40,000, you’ll have to pay an additional £440 per year for five years, on top of the standard rate. This applies to all types of cars whether its petrol, diesel, hybrid, or electric. 

There are recent changes for electric and hybrid cars, too. In April 2025, electric cars lost their tax exemption:

• Electric, zero or low emission cars registered on or after 1 April 2025: £10 first-year rate, and then £200 a year.
• Electric, zero or low emission cars registered on or after 1 April 2017: £200 a year. 
• Hybrid and alternative-fuel vehicles no longer get the annual £10 discount, they follow the same rules as petrol or diesel cars. ^{Footnote [4]}  

To find your car tax band you will need:

• your car’s fuel type
• its CO₂ emissions
• the year your car was registered (you can find this in your V5C logbook)

It should be detailed in your V5C logbook, or you can check using gov.uk’s vehicle tax rates.

There are different types of exemptions and discounts you can get on your car tax. You must tax your vehicle even if you do not have to pay.

Disability tax exemption – You can get vehicle tax exemption for one vehicle, if you have:

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

Historic vehicles – If your vehicle was made before 1st January 1986, then you are exempt from paying tax.

Mobility vehicles and powered wheelchairs – These are exempt if the following apply:

• they have a maximum speed of 8mph on the road.
• they are fitted with a device that limits them to 4mph on footways.

Vehicles used for agriculture, horticulture and forestry – These include:

• tractors
• agricultural engines
• light agricultural vehicles used off-road
• ‘limited use’ vehicles used for short journeys (no more than 1.5km) on a public road between land that’s used by the same person. ^{Footnote [5]}  

Road tax isn’t included in the price of a car. So, when you buy a car, you take on the responsibility for taxing it.

However, if you’re the one selling the car, you can get a refund on any remaining car tax. To do this, you must tell the DVLA that you’ve sold the car and give them the full name and address of the buyer. 

There are a few ways that you can tax your vehicle:

• online on the gov.uk website
• by phone
• at a Post Office

You usually have the option of either setting up a monthly direct debit or paying the annual amount upfront.

Before you tax your car, UK law requires you to have valid car insurance in place. With the option of third party, fire and theft or comprehensive car insurance, you can find cover that meets your needs. With six optional add-ons, you can customise your cover to suit your specific needs. As you go through your quote, you’ll have the option to include additional features, with the cost of each one clearly displayed. Before buying your car insurance, you’ll be able to review and confirm which extras you’d like.