Road Tax Bands Explained: UK Vehicle Excise Duty Guide (2026)

What Is Road Tax (VED)?

Road tax — officially known as Vehicle Excise Duty (VED) — is a tax you must pay to keep your vehicle registered for road use in the UK. It is collected by the Driver and Vehicle Licensing Agency (DVLA) and is separate from fuel duty, insurance, and the MOT.

Despite the common name "road tax", VED does not pay for road maintenance. Revenue goes into the general Treasury fund. Roads are funded from general taxation and, in some cases, local council budgets.

Every vehicle kept or driven on public roads must be taxed. If you do not want to tax your car — for example, if it is off the road — you must declare a Statutory Off Road Notification (SORN). Failing to tax or SORN a vehicle is a criminal offence.

How UK Road Tax Works

The amount you pay depends on three main factors:

1. When the car was first registered — the rules differ for cars registered before and after 1 April 2017
2. The car's CO₂ emissions — measured in grams per kilometre (g/km)
3. The fuel type — petrol, diesel, electric, hybrid, or alternative fuel

The system is split into two main eras:

Cars Registered On or After 1 April 2017

This is the current system that applies to most used cars on the market. It works in two stages:

First-year rate (paid when the car is first registered)

The first-year rate is based on the car's official CO₂ emissions. This rate is typically included in the on-the-road price when buying new. The rates range from £0 for zero-emission vehicles to over £2,600 for the highest-polluting cars.

CO₂ emissions (g/km)	Petrol / diesel first-year rate	Alternative fuel first-year rate
0	£0	£0
1–50	£10	£0
51–75	£30	£20
76–90	£130	£120
91–100	£165	£155
101–110	£175	£165
111–130	£220	£210
131–150	£270	£260
151–170	£680	£670
171–190	£1,095	£1,085
191–225	£1,650	£1,640
226–255	£2,340	£2,330
255+	£2,745	£2,735

Rates shown are for 2025/26 tax year. Alternative fuel includes hybrids, bioethanol, and LPG vehicles.

Standard rate (from year two onwards)

After the first year, most cars move to a flat standard rate of £190 per year, regardless of their emissions. This means a small city car and a large SUV both pay the same annual amount — a simplification that removed the incentive structure of the old system.

Alternative fuel vehicles (including hybrids) pay the same £190 standard rate. Zero-emission vehicles (pure electric and hydrogen) were exempt from VED entirely until April 2025 but now also pay VED — see the section on electric vehicles below.

The Expensive Car Supplement

If your car had a list price (including options) of more than £40,000 when new, it attracts an additional surcharge called the expensive car supplement. This is £410 per year on top of the standard rate, payable for five years starting from the second year of registration.

During those five years, the total annual VED is:

• Standard rate: £190
• Expensive car supplement: £410
• Total: £600 per year

After five years, the supplement drops off and the car reverts to the standard £190 rate.

This is an important consideration when buying a used car. A three-year-old car that was over £40,000 when new still has two years of the supplement left to pay. Check before you buy — the supplement applies even if the car has depreciated significantly below £40,000 in actual value.

Important: The £40,000 threshold is based on the original list price when the car was brand new, including any factory-fitted options. It does not matter what you paid for the car or what it is currently worth.

Key Factors That Affect Road Tax

CO₂ Emissions

CO₂ output is the primary factor in determining the first-year tax rate. Lower emissions mean lower first-year tax. From year two onwards, CO₂ only matters for pre-2017 cars (which remain on the old banding system).

Manufacturers publish official CO₂ figures for every model. Since September 2018, these are measured using the WLTP (Worldwide Harmonised Light Vehicles Test Procedure), which is more realistic than the older NEDC test. However, even WLTP figures are typically 10–20% better than real-world driving.

Fuel Type

Fuel type affects tax in several ways:

• Petrol and diesel — taxed at the standard rates
• Alternative fuel vehicles (hybrids, LPG, bioethanol) — receive a £10 discount on the first-year rate compared to petrol/diesel equivalents; the standard rate is the same
• Zero-emission vehicles (electric, hydrogen) — were fully exempt from VED until April 2025; now pay VED at reduced first-year rates and the standard rate from year two (see electric vehicle section)

New diesel cars that do not meet the RDE2 (Real Driving Emissions 2) standard are charged the next higher first-year rate band, as an additional levy for higher real-world NOₓ emissions. Most modern diesels from 2020 onwards meet RDE2 and are not affected.

First Registration Date

The date your car was first registered determines which tax system applies:

• On or after 1 April 2017 — the current two-stage system (first-year rate + standard rate)
• Between 1 March 2001 and 31 March 2017 — the older CO₂ banding system with annual rates based on emissions
• Before 1 March 2001 — taxed based on engine size (see pre-2001 section)

When buying a used car, always check when it was first registered to understand which system — and which rate — applies.

Electric and Hybrid Road Tax Rules

Zero-Emission Vehicles (Pure Electric and Hydrogen)

Until 31 March 2025, zero-emission vehicles were fully exempt from VED — one of the significant financial incentives for going electric. This has now changed:

From 1 April 2025:

• New zero-emission vehicles pay the lowest first-year rate (currently £10)
• From year two, they pay the standard rate of £190 per year — the same as petrol and diesel cars
• The expensive car supplement now applies to zero-emission vehicles too — so electric cars with a list price over £40,000 pay £600 per year for five years

For used electric vehicles already on the road before April 2025, VED is now due at the standard rate from the 2025/26 tax year onwards.

This change significantly affects the running cost calculations for electric vehicles. A Tesla Model 3, for example, goes from paying £0 in road tax to £190 or £600 per year depending on its original list price.

Hybrid Vehicles

Hybrids — both self-charging and plug-in — are classified as alternative fuel vehicles for VED purposes. They receive a modest £10 discount on the first-year rate compared to equivalent petrol or diesel models. From year two, they pay the full standard rate of £190 per year.

If the hybrid had a list price over £40,000, the expensive car supplement applies just as it does for any other vehicle.

Plug-in hybrids with very low CO₂ emissions (under 50 g/km) benefit from a low first-year rate but still pay the standard rate from year two. The financial advantage compared to a conventional petrol or diesel car is therefore limited to the first year of registration.

Older Car Tax Systems

Cars Registered Between 1 March 2001 and 31 March 2017

Cars first registered in this period are taxed under the older CO₂ banding system. Instead of a flat standard rate, the annual VED is determined by the car's emissions band, and you pay that band rate every year for the life of the vehicle.

Band	CO₂ emissions (g/km)	Annual rate (petrol/diesel)	Annual rate (alternative fuel)
A	Up to 100	£0	£0
B	101–110	£20	£10
C	111–120	£35	£25
D	121–130	£160	£150
E	131–140	£190	£180
F	141–150	£210	£200
G	151–165	£255	£245
H	166–175	£305	£295
I	176–185	£360	£350
J	186–200	£415	£405
K	201–225	£435	£425
L	226–255	£620	£610
M	Over 255	£695	£685

Rates shown are for 2025/26 tax year.

Under this system, low-emission cars (bands A to C) are significantly cheaper to tax than the post-2017 flat rate of £190. Conversely, high-emission cars in bands L and M pay considerably more. This means that when buying a used car from this era, the emissions figure directly and permanently affects your annual tax bill.

Cars Registered Before 1 March 2001

The oldest cars on the road are taxed based on engine size rather than emissions (as CO₂ data was not recorded for these vehicles):

Engine size	Annual rate
Up to 1,549cc	£200
Over 1,549cc	£325

Cars that are over 40 years old (i.e., manufactured before 1 January 1986 as of 2026) are classified as historic vehicles and are completely exempt from road tax — they pay £0.

How to Check a Car's Road Tax Band

You can check road tax information before buying:

DVLA Vehicle Enquiry Service

The quickest method is the DVLA vehicle enquiry service. Enter the car's registration number to see:

• Current tax status (taxed, SORN, or untaxed)
• Tax due date
• CO₂ emissions
• Year of first registration

V5C Registration Document (Logbook)

The V5C logbook includes:

• CO₂ emissions figure
• Fuel type
• Date of first registration
• Engine size

All the information needed to determine the tax band. If the seller cannot provide the V5C, treat this as a red flag — it may indicate ownership issues.

Online Tax Calculators

Several motoring sites offer VED calculators where you can enter a registration number or vehicle details to see the exact annual tax rate. These are useful when comparing the running costs of different cars you are considering.

When Road Tax Must Be Paid

Road tax must be in place at all times while a vehicle is kept on a public road. Key rules:

• Tax does not transfer with a vehicle when it is sold. The new owner must tax the car before driving it. Any remaining tax on the seller's account is automatically refunded.
• You can pay annually, every six months, or monthly via direct debit. Paying monthly or six-monthly costs slightly more due to a surcharge (typically 5% for six-monthly and 5% for monthly).
• A SORN must be declared if the vehicle is kept off the road and untaxed. A SORN lasts until the vehicle is taxed again or scrapped.
• Road tax can be purchased online at GOV.UK, at a Post Office, or by phone.

Buying a Used Car: Tax Rules

When buying a used car:

1. The seller's road tax is cancelled when they notify DVLA of the sale
2. Any remaining full months of tax are refunded to the seller
3. You must tax the car before you can legally drive it — there is no grace period
4. You can tax the car online at GOV.UK using the New Keeper Supplement (V5C/2) from the logbook or the green "new keeper" slip

You cannot drive an untaxed car on a public road, even to drive it home from the seller. If the car is not taxed, you must either tax it at the point of sale (using your phone to tax it on the DVLA website) or arrange for it to be transported on a trailer or flatbed.

Penalties for Driving Without Tax

The penalties for keeping or driving an untaxed vehicle are significant:

• Late licensing penalty — an automatic fine of £80 (reduced to £40 if paid within 28 days) issued by DVLA
• Court prosecution — a fine of up to £1,000 for using or keeping an untaxed vehicle on a public road
• Wheel clamping — DVLA-contracted enforcement agents can clamp untaxed vehicles found on the road. Release costs approximately £100, and if not released within 24 hours, the vehicle may be impounded
• Vehicle impounding — impounded vehicles must be taxed and released within a set period or they are crushed or auctioned. Recovery costs (impounding, storage, and release fees) can reach several hundred pounds
• Continuous insurance enforcement — untaxed vehicles are also frequently uninsured, which carries its own penalties (a £100 fixed penalty, seizure, and potential prosecution with an unlimited fine)

DVLA uses Automatic Number Plate Recognition (ANPR) cameras — the same technology used by police — to identify untaxed vehicles. These cameras operate across the road network, making it increasingly difficult to avoid detection.

How Road Tax Affects Buying Decisions

Road tax should be a factor — but rarely the deciding factor — when choosing a used car:

Post-2017 Cars

For most post-2017 cars, road tax is a flat £190 per year — so it does not meaningfully differentiate between models. The exception is the expensive car supplement: if you are considering a car that was over £40,000 new, check whether the supplement is still active. Paying £600 vs £190 per year is a meaningful difference.

Pre-2017 Cars

For pre-2017 cars, the emissions-based banding system means road tax varies significantly. A low-emission car in band A or B costs £0–£20 per year, while a high-emission car in band M costs £695. Over a five-year ownership period, that difference can amount to over £3,000 — enough to influence which car offers better value.

Electric Vehicles

The removal of the VED exemption for electric vehicles in 2025 reduces one of the financial advantages of going electric. However, electric vehicles still benefit from lower fuel costs (electricity is cheaper per mile than petrol or diesel), no ULEZ or CAZ charges, and lower maintenance costs. Road tax at £190 per year is a relatively small part of the total ownership picture.

Practical Tips

• Check the road tax before bidding, viewing, or buying — do not assume it is cheap
• Factor the expensive car supplement into your budget — a "bargain" premium used car with the supplement active costs an extra £2,050 over five years
• Consider band A–C pre-2017 cars for the cheapest road tax — if you can find one that suits your needs
• Remember that road tax rates change — the government reviews VED rates annually, and rates may increase in future budgets