New road tax rates, VED bands and costs 2022/2023

Road tax rates increased on 1 April for most cars, but how much more will you be paying in new VED car tax charges for 2022? Find out here 

Here we look at what new car tax charges and changes for 2022 an 2023. Read on to see how much VED road tax you will be asked to pay. 

How much will it cost to tax your car?You need VED and it's going up on 1 April 2022 - find out the details here  (Credit: Pixabay)

Are road tax (VED) rates going up in 2022 and when?

Road tax (VED) rates increased on 1 April 2022. The Chancellor Rishi Sunak announced his proposal in the autumn Budget 2021 that the duty would increase in line with the Retail Prices Index (RPI). 

Will the road tax rate rise apply to diesel and petrol cars?

Yes. The RPI-related hike to VED has been applied to both petrol and diesel vehicles since 1 April 2022.

What are car tax charges and changes for 2022?

Increasing road tax by the RPI has seen increases in the amount that drivers will pay for VED across all car bands - apart from pure-electric battery-powered vehicles that have escaped price hikes for now. 

How much car tax will I have to pay this year?

The amount of road tax that you will have to pay depends entirely on how ‘green’ your car is – judged by the CO2 emissions that it pumps out of the exhaust pipe. See the bands below to match your car to a band.

How do I find out my car's emissions to see what band it is in?

There are various methods, but an easy way is to check online using this Gov.UK tool to find your car's emissions.

2022-2023 Spring Budget March 23 car tax increases

On 23 March 2022, the Chancellor Rishi Sunak gave his Spring Budget. See below for the price increases for VED that the Chancellor comfirmed.

Road tax charges 2022-2023 - car tax rates and VED bands from April

You can check your car’s emissions figures then work out how much more you will pay compared to previous years. 

Cars first registered on or after April 1 2017: First year road tax rates and standard VED from 1 April 2022 

Your vehicle emits 0g/km:

You will pay £0 for the first-year rate

Your vehicle emits 1-50g/km:

First-year road tax rates will remain at £10

Standard VED rate increases from £155 to £165

Your vehicle emits 51-75g/km:

First-year road tax will remain at £25

Standard VED rate increases from £155 to £165

Your vehicle emits 76-90g/km:

First-year road tax rates will increase from £115 to £120

Standard VED rate increases from £155 to £165

Your vehicle emits 91-100g/km:

First-year road tax rates will increase from £140 to £150

Standard VED rate increases from £155 to £165

Your vehicle emits 101-110g/km:

First-year road tax rates will increase from £160 to £170

Standard VED rate increases from £155 to £165

Your vehicle emits 111-130g/km:

First-year road tax rates will increase from £180-£190

Standard VED rate increases from £155 to £165

Your vehicle emits 131-150g/km:

First-year road tax rates will increase from £220 to £230

Standard VED rate increases from £155 to £165

Your vehicle emits 151-170g/km:

First-year road tax rates will increase from £555 to £585

Standard VED rate increases from £155 to £165

Your vehicle emits 171-190g/km:

First-year road tax rates will increase from £895 to £945

Standard VED rate increases from £155 to £165

Your vehicle emits 191-225g/km:

First-year road tax rates will increase from £1345 to £1420

Standard VED rate increases from £155 to £165

Your vehicle emits 226-255g/km:

First-year road tax rates will increase from £1,910 to £2,015

Standard VED rate increases from £155 to £165

Your vehicle emits over 255g/km:

The first-year rate for these vehicles will increase from £2,245 to £2,365

Standard VED rate increases from £155 to £165

Cars first registered on or after March 1 2001

Band A: VED will remain the same at 0.

Band B: Standard rate will remain the same at £20.

Band C: Standard rate will remain the same at £30.

Band D: Standard rate will increase from £130 to £135.

Band E: Standard rate will increase from £155 to £165.

Band F: Standard rate will increase from £170 to £180.

Band G: Standard rate will increase from £210 to £220.

Band H: Standard rate will increase from £250 to £265.

Band I: Standard rate will increase from £275 to £290.

Band J: Standard rate will increase from £315 to £330.

Band K: Standard rate will increase from £340 to £360.

Band L: Standard rate will increase from £585 to £615.

Band M: Standard rate will increase from £600 to £630.

How much is the £40,000-plus car tax surcharge

This is a VED surcharge that must be paid on cars that cost more than £40,000 when new – it is currently set at £335. This surcharge must be paid each year on top of the standard flat rate of VED. Owners will need to pay it for five years from the second year of registration. When the car reached six years old, it falls back to the standard flat rate. It’s worth noting that zero-emission cars do not pay this charge.

Do I have to pay road tax in 2022?

On the whole, yes, but there are a few exceptions that could mean you – or more your vehicle – are exempt from paying vehicle excise duty. These include the following:

  • Your new car has zero CO2 emission from the tailpipe and comes with a list price of less than £40,000.
  • Your car is more than 40 years old. If you own a vehicle that was registered before 1 January 1982, then it will be exempt from paying road tax. Additionally, if you do not know when your vehicle was built, but it was first registered before 8 January 1982, you can also apply to stop paying vehicle tax. If your vehicle is exempt, you will need to apply to have the exemption made official and not just assume you can drive without letting the DVLA know. You can apply for exemption here.
  • Some drivers with disabilities can also register as being exempt from paying VED. More information can be found here on road tax exemption for drivers with disabilities.

Do you pay road tax on electric cars?

While road tax, or as it is officially known as VED, or vehicle excise duty is paid on all conventional cars - and hybrid cars now - fully electric cars are exempt from paying any road tax at all. 

However, this will not last forever, as more people adopt electric travel through EVs, it is likely that the government will need to find another way to raise funds. One suggestion is that electric cars may be tagged and tracked so you pay for the miles driven. But for now, electric cars are free from road tax. 

What tax band is my car in? How to find out

The Government has a tool that can help you find out what tax band your existing car or a new vehicle is in. The tool is free to use and can be accessed 24 hours a day for ease of information. Use this tool here to find out what tax band a car is in and how much it will cost at the time of checking.

All Car tax bands 2022/23 at a glance

Here are a quick reference set of tables to show how much car tax you are likely to be paying in 2022/23 after 1 April whatever you are driving.

CO2 emissions

First Year rate

Standard Rate

0 g/km £0 £0
1 to 50 g/km £10 £165
51 to 75 g/km £25 £165
76 to 90 g/km £120 £165
91 to 100 g/km £150 £165
101 too 110 g/km £170 £165
111 to 130 g/km £190 £165
131 to 150 g/km £230 £165
151 to 170 g/km £585 £165
171 to 190 g/km £945 £165
191 to 225 g/km £1,420 £165
226 to 255 g/km £2,015 £165
Over 255 g/km £2,365 £165

2022 annual road tax VED standard rates for all types of cars registered after April 2017

Tax class

12 months

6 months

Petrol/diesel cars

£165

£90.75

Alternative Fuel Cars

£155

£85.25

Standard VED including £335 luxury car tax surcharge

   

Petrol/diesel cars

£529

£286

Alternative Fuel Cars

£510

£280.50

VED rates for cars registered 2001 to 2017

   

Petrol and diesel cars

 

Alternative Fuel Cars

 

Band

g/km CO2

12 months

6 months

12 months

6 months

A

0-100

£0

-

£0

-

B

101-110

£20

-

£10

-

C

111-120

£30

-

£20

-

D

121-130

£135

£74.25

£125

£68.75

E

131-140

£165

£90.75

£155

£85.25

F

141-150

£180

£99

£170

£93.50

G

151-165

£220

£121

£210

£115.50

H

166-175

£265

£145.75

£255

£140.25

I

176-185

£290

£159.50

£280

£154

J

186-200

£330

£181.50

£320

£176

K

201-225

£360

£198

£350

£192.50

L

226-255

£615

£338.25

£605

£332.75

M

255+

£630

£346.50

£620

£341

Private/light goods vehicle (tax class 11) weighing no more than 3,500kg

 
Engine size Standard rate* for petrol and diesel cars  Annual increase 
Up to 1549cc £180 £10
Over 1549cc  £295 £15

What is my car tax by registration number?

You can use various online car tax calculators to find out how much your VED you will pay simply by entering your registration number. These may not take all information into account, but will give a good idea. 

How can I pay less for my car tax?

Many people pay for their car tax in monthly instalments across the year, but using this method can mean you pay more. Taking a one-off hit of paying the full annual amount will mean you pay less as car tax rates increase for 2022/23. 

Paying for your car tax (VED) monthly or every six months attracts a surcharge of 5%. So, for example, if your vehicle emits 131-150g/km you will pay an extra £11.50 a year for first-year tax with instalments compared to a yearly payment, or an extra £118.25 for vehicles emitting over 255g/km.

What pre-March 2017 cars will get free road tax?

If you want to cut your motoring costs in 2022/23, buying a pre-March 2017 car with emissions less than 100g/km will attract zero road tax. This will include the likes of the Peugeot 107 will qualify for zero road tax and also ensure you’re not hit by the taxes such as the ULEZ and other schemes across the UK. You can pick up a decent car that emits less than 100g/km for around £1,500. Have a search now.

Check tax on car now 

Now that vehicles do not need to display a tax disc, drivers can find out if their vehicle is currently taxed by using a free online check provided by the government. Check if your vehicle is taxed here.

Will Benefit in Kind rates also be going up for company car drivers?

Yes. The Benefit in Kind rates - also known as BIK - will also see a rise from the 1st April 2022, just like road tax. Most rates of BIK will go up by 1% but there are exceptions: Electric cars, along with other vehicles that emit less than 50g/km CO2, will see BIK increase from 1% to 2%. Additionally, any vehicle that emits more than 156g/km will see BIK rates remain at the current level of 37% 

See more vehicle rates here

What are the best road tax-free cars on sale in the UK

With car tax increasing and the cost-of-living crisis hitting British families, these cars are a great selection of cars that are free for road tax.

A list of some of the best tax-free cars on sale.

Fiat 500 e
MG5
Volkswagen ID.3
Kia e-Niro
Vauxhall Mokka E
Peugeot e-208
Mini Electric
Hyundai Ioniq Electric
Honda e
Renault ZOE

How can I get a road tax refund?

Remember, you cannot sell a car with road tax, so you will need to get a refund on the remaining months if you do not want to lose the money. Here is our easy to follow guide to get your road tax refund.

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