Car Tax Rates 2023 | Car Tax Calculator

In This Guide

Car Tax for cars after 1 April 2017

Car Tax for cars 2001 to 2017

Car Tax for cars before 2001

How much is my Car Tax?

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Cars that are free to tax

Cars that cost £20 to tax

Cars that cost £30 to tax

Classic cars that are tax exempt

How much is my road tax?

People think of car tax (or Vehicle Excise Duty as it's officially known) as one tax - the disc that you used to put in your windscreen before the system went entirely electronic.

But the fact is car tax is far more complicated than that and - for cars alone - is made up of at least four different systems and bands. Classic Car Road Tax (cars more than 40 years old), cars registered before 2001, cars registered between 2001 and 2017 and those registered after April 2017.

These are the latest 2023 car tax rates as announced in the March 2023 Budget. They are effective from April 1st 2023.

Car tax for cars registered from 1 April 2017 onwards

CO2 emissions (g/km)	Petrol and diesel cars	Alternative fuel cars*
1-50	£0	£0
51-75	£180	£170
76-90	£180	£170
91-100	£180	£170
101-110	£180	£170
111-130	£180	£170
131-150	£180	£170
151-170	£180	£170
171-190	£180	£170
191-225	£180	£170
226-255	£180	£170
Over 255	£180	£170

*Alternative fuel includes PHEVs, hybrids, bioethanol and LPG

Since 2017, all new cars are taxed against three new VED bands - zero, standard, premium - with taxation calculated on a combination of emissions and the list price of the vehicle.

There is a flat standard rate of £165 for most new cars except hybrids and electric vehicles. Cars with a list price above £40,000 pay an additional £355 per year - £520 in total for petrol or diesel - for five years in which the standard rate is paid (from the second year the vehicle is taxed). Cars that emit zero CO2 are not charged the premium rate of £355.

Electric cars qualify for free car tax but this will change on 1 April 2025 when EV drivers will be required to pay the standard rate of £165. The exemption from the premium rate will end, too. This means electric cars with a list price of £40,000 or more will be charged £520 per year for VED.

The new car tax rules for electric cars will also affect petrol and diesel cars registered between 1 March 2001 and 1 April 2017. This means all cars in Band A (which emit less than 100g/km of CO2) will be moved into Band B on 1 April 2025 - a move that will see millions of cars charged car tax VED for the first time. The car tax discount for hybrid cars will also end in 2025.

First tax payment when you register the vehicle

CO2 emissions (g/km)	First-year VED
0	£0
1 - 50	£10
51 - 75	£30
76 - 90	£130
91 - 100	£165
101 - 110	£185
111 - 130	£210
131 - 150	£255
151 - 170	£645
171 - 190	£1040
191 - 225	£1565
226 - 255	£2220
Over 255	£2605

This payment covers your vehicle for 12 months.

Rates for second tax payment onwards

Fuel type	Single 12 month payment	Single 12 month payment by Direct Debit	Total of 12 monthly payments by Direct Debit	Single 6 month payment	Single 6 month payment by Direct Debit
Petrol or diesel	£180	£180	TBC	TBC	TBC
Electric	£0	£0	£0	£0	£0
Alternative	£170	£70	TBC	TBC	TBC

Vehicles with a list price of more than £40,000

Fuel type	Single 12 month payment	Single 12 month payment by Direct Debit	Total of 12 monthly payments by Direct Debit	Single 6 month payment	Single 6 month payment by Direct Debit
Petrol or diesel	£570	£570	TBC	TBC	TBC
Electric	£0	£0	£0	£0	£0
Alternative	£560	£560	TBC	TBC	TBC

You have to pay an extra £390 a year if you have a car or motorhome with a ‘list price’ (the published price before any discounts) of more than £40,000. You have to pay this rate for five years (from the second time the vehicle is taxed).

Car tax for cars registered between 2001 and 2017

If your car is registered between 2001 and 2017, you pay car tax (or VED) based on your car's CO2 emissions. This is a more complex system than the one that went before it and came after. During its lifespan, this road tax system was modified under several governments. You will need to know your car's CO2 emissions in order to calculate its road tax (or you can let us do it for you).

It did, however, create several opportunities for car owners to pay zero or very little road tax. As car manufacturers learned to take advantage of the system, more cars fell into lower bands and this ultimately led to its abolition.

VED band	CO2 emissions (g/km)	Petrol and Diesel cars	Alternative fuel cars
A	Up to 100	£0	£0
B	101-110	£20	£10
C	111-120	£35	£25
D	121-130	£150	£140
E	131-140	£180	£170
F	141-150	£200	£190
G	151-165	£240	£230
H	166-175	£290	£280
I	176-185	£320	£310
J	186-200	£365	£355
K*	201-225	£395	£385
L	226-255	£675	£665
M	Over 255	£695	£685

* Includes cars emitting over 225g/km registered before 23 March 2006

Rates for cars registered before 2001

The system for cars registered before April 2001 is based exclusively on engine size. It's simple to understand with two rates - one for those below 1.6 litres and one for above 1.6 litres. There is the option of paying every six or 12 months. There is nothing in the way of saving money. The under 1.6 litres/six month option is the cheapest rate of road tax.

Engine size	12 month rate	Six month rate
1549cc and below	£200	£TBC
Above 1549cc	£325	£TBC

How to cancel car tax

Unlike the old days when car tax stayed with the vehicle, now it is essentially a contract between you and the DVLA, so as soon as its ownership is transferred, you no longer have to tax it.

That might seem more complicated, but it takes the tax element out of buying or selling a car, and also means you don’t have to pay car tax for a car you are not using. Here's how to cancel car tax and get a refund.

Calculate my car tax for me

How much is my road tax?

Find by make and model

Cars from 1 April 2017 are taxed at a flat rate, based on initial list price.

Cars from 1 March 2001 to 1 April 2017 are taxed according to how much CO2 they emit.

Cars registered before 1 March 2001 are taxed on engine size. There are two bands: engines up to and including 1549cc and engines over 1549cc.

Cars with zero car tax

Savvy used car buyers will be on the look out for low emissions cars registered before the 1st of April 2017. Choosing a car that's just a few months older can mean the difference between paying nothing (or very little) for car tax compared to £165 a year. And there are a surprising number of cars out there worth seeking out. Sadly, this is changing in 2025 and these cars will move up a band, although that's still only £20 a year.

See the full list

Buying a classic car?

Our sister site Honest John Classics has everything you need to know on taxing a classic car - including details of those that are road tax exempt.

See the full details

Ask HJ

Why is the road tax on my 2005 car so high?

I want to know why my 2005 Honda Accord has such expensive car tax. Some people pay nothing or very little and I pay a fortune.

It comes down to age and emissions. Cars registered from 2001 to 2017 are taxed against CO2 emissions, while newer cars are taxed against a flat rate that increases if the list price exceeds £40,000: https://www.honestjohn.co.uk/cheap-road-tax/ If you want to cut your road tax VED costs, you'll need to sell your Honda Accord and buy a car that meets the old band A CO2 rules: https://www.honestjohn.co.uk/road-tax/top-50-cars-in-tax-band-a

Answered by Dan Powell

Why is my first year road tax so much?

Why are Skoda quoting £540 for the first year of road tax for a Karoq?

The first year 'showroom' VED tax rate is based on the vehicle's CO2 tailpipe emissions. After this it falls to a flat rate of £150, which is then bumped up to £475 if the car's list price is over £40,000: https://www.honestjohn.co.uk/cheap-road-tax

Answered by Dan Powell