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Car tax bands explained

A man in a car driving

Published:

16 December 2024

The amount of car tax charged isn’t the same for each car. Depending on how eco-friendly the car is, it can cost anywhere between nothing and a few thousand pounds – and you may be exempt if you have a disability.

What is car tax?

Car tax (officially known as VED but sometimes referred to as road tax) is a charge that you have to pay on any car that’s: 

  • registered in the UK, and 
  • driven or kept on a public road. 

When buying a car, you’ll need to tax it on GOV.UKOpens in a new window 

If your car is declared off-road with a SORN

If you aren’t keeping or driving your car on a public road, you won’t need to pay car tax.  

You’ll need to register your vehicle as off-road on GOV.UKOpens in a new window, often called a Statutory Off Road Notification (SORN). 

How much is car tax?

The amount of car tax you’ll pay depends on: 

  • when your car was first registered 
  • what kind of fuel the car uses (or if the car is electric) 
  • how much CO2 the car emits 
  • if your car’s purchase price is over £40,000 
  • if you choose to pay monthly, every six months or annually. 

You’ll also pay different rates if this is the first year the car is being taxed. 

Car tax when registering a new car

If you’re registering a new car, you’ll need to pay the first 12 months up front. This amount will be based on: 

  • the type of fuel the car uses 
  • its CO2 emissions. 

You can view how much you’ll pay for the first tax payment on GOV.UKOpens in a new window

Car tax rates

You can see full details of car tax rates on GOV.UK: 

  • Cars registered on or after 1 April 2017Opens in a new window
  • Cars registered between 1 March 2001 and 31 March 2017Opens in a new window 
  • Cars registered before 1 March 2001Opens in a new window

How do I pay car tax?

Your car tax is an annual payment, but you don’t have to pay it all in one go. You can choose to: 

  • pay monthly (on the 1st of each month) 
  • pay every six months 
  • pay every year. 

You’ll pay a bit less overall if you choose to pay it all in one go. You can tax your vehicle on GOV.UKOpens in a new window

 

Paying car tax with a Direct Debit

Setting up a Direct Debit is the best way to make sure you don’t miss a payment. 

You’ll have the option to set up a Direct Debit when you tax the vehicle online. You can also set one up at a Post Office.

What car tax band is my car?

If you have your car’s registration and V5C logbook, you can find out how much car tax you’ll pay each year on GOV.UK’s vehicle status checkerOpens in a new window

If you only have the car’s registration, you can still use the vehicle checker to see the car’s: 

  • year of registration 
  • fuel type, and 
  • CO2 emissions. 

You can then use these to work out what tax band the car is in using the vehicle tax rate tables on GOV.UKOpens in a new window

Who doesn’t have to pay car tax?

You won’t need to pay car tax if: 

  • you have a qualifying disabilityOpens in a new window 
  • your car has been registered as off-road 
  • you're driving an electric car (until 1 April 2025) 
  • your car is over 40 years old. 

Even if you don’t have to pay anything, you’ll still need to tax your vehicleOpens in a new window annually to let the DVLA know. 

When can I stop paying car tax?

You can stop paying car tax if you've completed a Statutory Off Road Notification (SORN). 

You can also stop paying car tax once you’ve let the DVLA know that: 

  • you’ve sold your car, meaning tax has become the responsibility of its new owner 
  • you’ve scrapped your car 
  • your car has been written off by an insurance company 
  • your car has been stolen. 

You can cancel your car tax and get a refund on GOV.UKOpens in a new window 

When can I drive an untaxed car?

The only situation in which you’re allowed to drive a car without tax is if you’re taking it to a pre-booked MOT. 

Otherwise, driving an untaxed car is illegal. 

How do I declare a car off-road?

You’ll need to complete a Statutory Off Road Notification (SORN). You can register your car as off-road on GOV.UKOpens in a new window

Once you’ve done this, you’ll need to make sure your car is kept off of public roads. It can’t be driven for any reason other than to take it to a pre-booked MOT. 

Do I need to pay car tax for an electric car

From 1 April 2025 drivers of electric and low emission cars will need to pay car tax. 

You can see full details of how much you’ll pay for electric and low emission cars on GOV.UKOpens in a new window

If you have an electric car with a purchase price of over £40,000, you’ll already be paying car tax. 

Is my car taxed?

You can check if your car is taxed using the vehicle status checker on GOV.UKOpens in a new window  

If you’re buying a car, you’ll need to tax it once it becomes yours. It won’t be taxed until you do, even if the previous owner’s tax wasn’t due to run out yet. 

What happens if I don’t tax my car?

If you don’t tax your car, you’ll be given an £80 fine by the DVLA (reduced to £40 if you pay it within 33 days). There’s also a risk that your car will be clamped or impounded. 

You can view the full range of fines you could face if you own or drive an untaxed car on GOV.UKOpens in a new window

If you don’t pay your penalty, your information will be sent to a debt collector to recover the payment, and you could even be prosecuted. 

The DVLA will send you a reminder when your car tax is due. You’ll need to make sure you get this sorted out on time. 

What if I’ve been fined unfairly?

If you think you’ve been fined by mistake, you can appeal a DVLA fine on GOV.UKOpens in a new window 

Does tax get transferred when buying a car?

No. If you buy a car that someone else has taxed, you’ll still need to tax the vehicle yourself before you can drive it. It doesn’t matter how long is left before the tax is due to run out. 

When buying a car, your first tax payment will be due on the 1st of the month. 

You can tax a new vehicle on GOV.UKOpens in a new window 

Can I get a refund on tax if I sell a car?

Yes, you’ll be able to get a refund on any full months of tax left. This means you won’t lose out if you’re paying your tax annually. 

Your refund will be sent automatically when you return the selling section of the V5C to the DVLA. 

You can cancel your car tax and get a refund on GOV.UKOpens in a new window 

Do I need to tax other types of vehicles?

Yes, any vehicle will need to be taxed including: 

  • motorcycles 
  • mopeds 
  • motor tricycles 
  • motorhomesOpens in a new window

You’ll need to tax electric motorcycles and tricycles from 1 April 2025. You can view tax rates for other vehicles on GOV.UKOpens in a new window

What other costs are there for running a car?

Car tax is just one of a few different costs you’ll face when running a car. You’ll also need to pay for: 

  • insurance 
  • servicing and maintenance 
  • MOT tests 
  • fuel or electricity 
  • any parking or speeding fines 
  • tolls and clean air zone charges. 

You can learn more in our guide Costs of buying and running a car.

How can I make sure I can afford car tax?

You’ll need to pay car tax each year, whether it’s monthly, every six months or all in one go. Use our Budget planner to make sure you’re prepared for this annual cost. 

Jake  Fleming
Author Jake Fleming
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