
Road tax rates are going up on 1 April for most cars, but how much more will you be paying in 2024 and into 2025 now that Chancellor Jeremy has delivered his Autumn Statement? Find out here as motoring journalist and expert Pete Barden reveals the new VED road tax charges you will have to pay on cars, vans and motorcycles from April 2024
Scroll down for new car tax charges and changes for 2024/25 - along with current rates of VED for 2023/24.
Most drivers will need VED for for
their vehicles and it will be going up again on 1 April 2024 - find out the details here (Credit:
Pixabay)
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TABLE OF CONTENTS
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New VED (road tax) rates from April 2024
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How much will road tax (VED) go up for 2024/25?
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How is the annual increase in VED Road Tax decided?
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How much did road tax VED go up on 1 April 2023?
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Does the road tax rate rise apply to diesel and petrol cars?
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How much car tax will I have to pay this year?
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How do I find out my car's emissions to see what band it is in?
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Road tax charges for 2023-2024 listed (from 1 April 2023 -31 March 2024)
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How much is the £40,000-plus car tax surcharge (2023/2024)
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Do I have to pay road tax for my car?
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What tax band is my car in by reg?
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What tax band is a new unregistered car in? How to find out
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Do you pay road tax on electric cars?
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Electric car road tax VED rates from April 2025
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Car tax bands 2023/24 at-a-glance guide to your road tax
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Check if road tax is valid on car now
How much will road tax (VED) go up on April 1, 2024?
The Chancellor of the Exchequer, Jeremy Hunt has delivered the Autumn Statement 2023 to Parliament on 22 November 2023 and it has been confirmed that VED road tax standard rate for cars will increase by the RPI. This will come into force on April 1.
However, in a move to support the transport sector, VED rates will not increase and will remain at 2023-2024 levels.
The Treasury says: "The government will uprate VED rates for cars, vans and motorcycles in line with RPI from 1 April 2024 in the Autumn Finance Bill 2023. To support the haulage sector, VED for HGVs and the HGV levy will both remain at 2023-24 rates for 2024-25."
The Retail Prices Index (RPI) is a measure of inflation in the UK, calculated by the Office for National Statistics (ONS). The RPI is used to measure the change in the average price of a basket of goods and services purchased by households.
But while the idea of inflation is pretty scary for most at the moment, the percentage rate used to indicate how much VED will increase for cars will not be in the realms of the highs experienced in headline inflation over the past year.
In fact, it is likely the increase for cars will be less that 6% - which means the standard rate for cars first registered on or after April 1 2017 will likely increase from its current level of £180 for most conventionally powered cars, to around £190.
The first-year supplement is also likely to increase by a similar amount, as are charges for cars first registered before April 1, 2017.
HMRC also increases the other rates of VED in line with RPI inflation. For example, the rates for cars with a list price of over £40,000 are increased from £310 to a potential figure of £325.
It was previously confirmed that electric vehicles will only begin paying VED from 2025, with EV owners currently not paying such tax.
HMRC publishes the new VED rates each year in the Budget. The new rates come into effect on 1 April each year.
VED (road tax) rates from April 1, 2024
These are our predicted rates for a sample of VED (road tax) rates from April 1, 2024, based on RPI increases. These could change if policy changes or additional tariffs are added.
Vehicle Excise Duty (VED) bands and rates for cars first registered on or after 1 April 2017 (rates for 2024/25)
CO2 emissions (g/km) | Standard rate | First year rate |
---|---|---|
0 | 0 | 0 |
1 to 50 | 190 | 10 |
51 to 75 | 190 | 30 |
76 to 90 | 190 | 135 |
91 to 100 | 190 | 175 |
101 to 110 | 190 | 195 |
111 to 130 | 190 | 220 |
131 to 150 | 190 | 270 |
151 to 170 | 190 | 680 |
171 to 190 | 190 | 1,095 |
191 to 225 | 190 | 1,650 |
226 to 255 | 190 | 2,340 |
Over 255 | 190 | 2,745 |
(source Gov.uk)
Vehicle Excise Duty bands and rates for cars first registered on or after 1 March 2001 (rates for 2024/25)
Vehicle Excise Duty band | CO2 emissions (g/km) | Standard rate |
---|---|---|
A | Up to 100 | 0 |
B | 101 to 110 | 20 |
C | 111 to 120 | 35 |
D | 121 to 130 | 160 |
E | 131 to 140 | 190 |
F | 141 to 150 | 210 |
G | 151 to 165 | 255 |
H | 166 to 175 | 305 |
I | 176 to 185 | 335 |
J | 186 to 200 | 385 |
K | 201 to 225 | 415 |
L | 226 to 255 | 710 |
M | Over 255 | 735 |
Band K includes cars emitting over 225g/km registered before 23 March 2006.
Vehicle Excise Duty bands and rates for cars and vans registered before 1 March 2001
Engine size | Tax year 2022 to 2023 | Tax year 2023 to 2024 | Tax year 2024 to 2025 |
---|---|---|---|
1549cc and below | 180 | 200 | 210 |
Above 1549cc | 295 | 325 | 345 |
Vehicle Excise Duty bands and rates for vans registered on or after 1 March 2001
Vehicle registration date | Tax year 2022 to 2023 | Tax year 2023 to 2024 | Tax year 2024 to 2025 |
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Early Euro 4 and Euro 5 compliant vans | 140 | 140 | 140 |
All other vans | 290 | 320 | 335 |
Vehicle Excise Duty bands and rates for motorcycles
Engine Size | Tax year 2022 to 2023 | Tax year 2023 to 2024 | Tax year 2024 to 2025 |
---|---|---|---|
Not over 150cc | 22 | 24 | 25 |
151cc to 400cc | 47 | 52 | 55 |
401cc to 600cc | 73 | 80 | 84 |
Over 600cc | 101 | 111 | 117 |
Vehicle Excise Duty bands and rates for motor tricycles
Engine Size | Tax year 2022 to 2023 | Tax year 2023 to 2024 | Tax year 2024 to 2025 |
---|---|---|---|
Not over 150cc | 22 | 24 | 25 |
All other tricycles | 101 | 111 | 117 |
New car tax (vehicle excise rates, VED) 1 April, 2023 - 31 March, 2024
In his Spring Budget back in March, Chancellor Jeremy Hunt confirmed an increase in VED rates for cars, vans and motorcycles in line with RPI from 1 April 2023. However, to help support the haulage sector, VED for HGVs will remain frozen for 2023-24.
Standard road tax (VED) from 1 April, 2023 - 31 March, 2024
The vehicle excise duty increase by RPI, which is 10.1% is rounded to the nearest £1 or £5. Standard rate road tax (VED) has increased from £165 to £180.00.
First-year and 'luxury' car tax from 1 April, 2023 - 31 March, 2024
Does 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.
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.
Subscribe for free updates on road tax rises and other motoring news
Road tax (Vehicle Excise Duty) charges from 1 April, 2023 - 31 March, 2024
These are the new road tax (VED) prices you will be asked to pay for 2023/2024.
Cars first registered on or after April 1 2017: First year road tax rates and standard VED from 1 April 2023 - 31 March 2024
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 £165 to £180
Your vehicle emits 51-75g/km:
First-year road tax will remain at £30
Standard VED rate increases from £165 to £180
Your vehicle emits 76-90g/km:
First-year road tax rates will increase from £120 - £130
Standard VED rate increases from £165 to £180
Your vehicle emits 91-100g/km:
First-year road tax rates will increase from £150 to £165
Standard VED rate increases from £165 to £180
Your vehicle emits 101-110g/km:
First-year road tax rates will increase from £170 to £185
Standard VED rate increases from £165 to £180
Your vehicle emits 111-130g/km:
First-year road tax rates will increase from £190 to £210
Standard VED rate increases from £165 to £180
Your vehicle emits 131-150g/km:
First-year road tax rates will increase from £230 to £255
Standard VED rate increases from £165 to £180
Your vehicle emits 151-170g/km:
First-year road tax rates will increase from £585 to £645
Standard VED rate increases from £165 to £180
Your vehicle emits 171-190g/km:
First-year road tax rates will increase from £945 to £1,040
Standard VED rate increases from £165 to £180
Your vehicle emits 191-225g/km:
First-year road tax rates will increase from £1,420 to £1,565
Standard VED rate increases from £165 to £180
Your vehicle emits 226-255g/km:
First-year road tax rates will increase from £2,015 to £2,220
Standard VED rate increases from £165 to £180
Your vehicle emits over 255g/km:
The first-year rate for these vehicles will increase from £2,365 to £2,605
Standard VED rate increases from £165 to £180
Cars first registered on or after March 1 2001 - 31 March 2017
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 £35.
Band D: Standard rate £150.
Band E: Standard rate £180.
Band F: Standard rate £200.
Band G: Standard rate £240.
Band H: Standard rate £290.
Band I: Standard rate £320.
Band J: Standard rate £365.
Band K: Standard rate £395.
Band L: Standard rate £675.
Band M: Standard rate £695.
How much is the £40,000-plus car tax surcharge (1 April, 2023 - 31 March, 2024)
This is a VED surcharge that must be paid on cars that cost more than £40,000 when new. It was previously set at £335 but subsequently increased to £390 on 1 April 2023.
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.
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Do I have to pay road tax?
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 1983 then it will likely be exempt from paying road tax. You must confirm this with the DVLA. Additionally, if you do not know when your vehicle was built, but it was first registered before 8 January 1983, 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.
What tax band is my car in by reg?
You may not be able to find the tax band of your car just by its registration number, but you can find out the exact amount of tax you will need to pay for a vehicle by entering the 11-digit reference number found on its V5C log book. Simply get the V5C reference number and enter it to the this Gov.UK page to get the exact amount of road tax you will pay - and how much annual, six-monthly, or monthly charges for VED will be.
What tax band is new unregistered 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.
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 currently exempt from paying any road tax at all.
However, Chancellor Jeremy Hunt has already confirmed that electric car owners will have to pay road tax - or Vehicle Excise Duty (VED) as it is officially know - from April 2025.
Chancellor Hunt justified the new tax by saying: "Because the OBR (Office for Budget Responsibility) forecast half of all new vehicles will be electric by 2025, to make our motoring tax system fairer I've decided that from then, electric vehicles will no longer be exempt from vehicle excise duty."
Business car tax rates will also get a discount for those using electric vehicles.
Currently, zero-emissions vehicles do not have to pay the £165 standard rate of road tax or the £335 supplement that car costing more than £40,000 are charged, but with the huge increase in such cars being purchased, the chancellor will be aware of Treasury predictions the drivers turning to electric cars could cost £7billion in lost tax revenues.
Electric car road tax VED rates from April 2025
- new zero emission cars registered on or after 1 April 2025 will be liable to pay the lowest first year rate of VED (which applies to vehicles with CO2 emissions 1 to 50g/km) currently £10 a year. From the second year of registration onwards, they will move to the standard rate, currently £165 a year
- zero emission cars first registered between 1 April 2017 and 31 March 2025 will also pay the standard rate
- the Expensive Car Supplement exemption for electric vehicles is due to end in 2025. New zero emission cars registered on or after 1 April 2025 will therefore be liable for the expensive car supplement. The Expensive Car Supplement currently applies to cars with a list price exceeding £40,000 for 5 years
- zero and low emission cars first registered between 1 March 2001 and 30 March 2017 currently in Band A will move to the Band B rate, currently £20 a year
- zero emission vans will move to the rate for petrol and diesel light goods vehicles, currently £290 a year for most vans
- zero emission motorcycles and tricycles will move to the rate for the smallest engine size, currently £22 a year
- rates for Alternative Fuel Vehicles and hybrids will also be equalised
Car tax bands 2023/24 at-a-glance guide to your road tax
Here are a quick reference set of tables to show how much car tax you are likely to be paying in 2023/24 after 1 April whatever you are driving.
CO2 emissions |
First Year Rate from 1 April 23 |
Std Rate from 1 April 2023 |
0 g/km | £0 | £0 |
1 to 50 g/km | £10 | £180 |
51 to 75 g/km | £30 | £180 |
76 to 90 g/km | £130 | £180 |
91 to 100 g/km | £165 | £180 |
101 too 110 g/km | £185 | £180 |
111 to 130 g/km | £210 | £180 |
131 to 150 g/km | £255 | £180 |
151 to 170 g/km | £645 | £180 |
171 to 190 g/km | £1,040 | £180 |
191 to 225 g/km | £1,565 | £180 |
226 to 255 g/km | £2,220 | £180 |
Over 255 g/km | £2,605 | £180 |
Vehicle Excise Duty bands and rates for cars and vans registered before 1 March 2001
Engine size | Tax year 2022 to 2023 | Tax year 2023 to 2024 |
---|---|---|
1549cc and below | 180 | 200 |
Above 1549cc | 295 | 325 |
Vehicle Excise Duty bands and rates for vans registered on or after 1 March 2001
Vehicle registration date | Tax year 2022 to 2023 | Tax year 2023 to 2024 |
---|---|---|
Early Euro 4 and Euro 5 compliant vans | 140 | 140 |
All other vans | 290 | 320 |
Vehicle Excise Duty bands and rates for motorcycles
Engine size | Tax year 2022 to 2023 | Tax year 2023 to 2024 |
---|---|---|
Not over 150cc | 22 | 24 |
151cc and 400cc | 47 | 52 |
401cc to 600c | 73 | 80 |
Over 600cc | 101 | 111 |
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 (these are based on 2022/23 figures)..
What pre-March 2017 cars will get free road tax?
If you want to cut your motoring costs in 2023/24, 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 if road tax is valid on a 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?
Company car tax — all cars
CO2 emissions, g/km | Electric range (miles) | Appropriate percentage (%) for 2022 to 2023 | Appropriate percentage (%) for 2023 to 2024 | Appropriate percentage (%) for 2024 to 2025 | Appropriate percentage (%) for 2025 to 2026 | Appropriate percentage (%) for 2026 to 2027 | Appropriate percentage (%) for 2027 to 2028 |
---|---|---|---|---|---|---|---|
0 | Not applicable | 2 | 2 | 2 | 3 | 4 | 5 |
1 to 50 | More than 130 | 2 | 2 | 2 | 3 | 4 | 5 |
1 to 50 | 70 to 129 | 5 | 5 | 5 | 6 | 7 | 8 |
1 to 50 | 40 to 69 | 8 | 8 | 8 | 9 | 10 | 11 |
1 to 50 | 30 to 39 | 12 | 12 | 12 | 9 | 10 | 11 |
1 to 50 | Less than 30 | 14 | 14 | 14 | 15 | 16 | 17 |
51 to 54 | - | 15 | 15 | 15 | 16 | 17 | 18 |
55 to 59 | - | 16 | 16 | 16 | 17 | 18 | 19 |
60 to 64 | - | 17 | 17 | 17 | 18 | 19 | 20 |
65 to 69 | - | 18 | 18 | 18 | 19 | 20 | 21 |
70 to 74 | - | 19 | 19 | 19 | 20 | 21 | 21 |
75 to 79 | - | 20 | 20 | 20 | 21 | 21 | 21 |
80 to 84 | - | 21 | 21 | 21 | 22 | 22 | 22 |
85 to 89 | - | 22 | 22 | 22 | 23 | 23 | 23 |
90 to 94 | - | 23 | 23 | 23 | 24 | 24 | 24 |
95 to 99 | - | 24 | 24 | 24 | 25 | 25 | 25 |
100 to 104 | - | 25 | 25 | 25 | 26 | 26 | 26 |
105 to 109 | - | 26 | 26 | 26 | 27 | 27 | 27 |
110 to 114 | - | 27 | 27 | 27 | 28 | 28 | 28 |
115 to 119 | - | 28 | 28 | 28 | 29 | 29 | 29 |
120 to 124 | - | 29 | 29 | 29 | 30 | 30 | 30 |
125 to 129 | - | 30 | 30 | 30 | 31 | 31 | 31 |
130 to 134 | - | 31 | 31 | 31 | 32 | 32 | 32 |
135 to 139 | - | 32 | 32 | 32 | 33 | 33 | 33 |
140 to 144 | - | 33 | 33 | 33 | 34 | 34 | 34 |
145 to 149 | - | 34 | 34 | 34 | 35 | 35 | 35 |
150 to 154 | - | 35 | 35 | 35 | 36 | 36 | 36 |
155 to 159 | - | 36 | 36 | 36 | 37 | 37 | 37 |
160 and over | - | 37 | 37 | 37 | 37 |
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.
I don't drive my car - do I have to pay road tax?
If you never drive your car and you have a private driveway, or other non-public space to store it, you do not need to pay road tax on the vehicle. However, it must not be used on a public road or space at all. Additionally, you will need to let the DVLA know that this is the case by obtaining a Statutory Off-Road Notification - aka a SORN. You can apply for a SORN here.
How is the annual increase in VED Road Tax decided?
The Chancellor combines various elements from inflation to roads policy and vehicle emissions when deciding how much to increase the amount drivers pay for VED - or road tax as most know it. Here are some of the considerations applies.
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Vehicle Emissions: VED rates in the UK are often linked to a vehicle's CO2 emissions. Vehicles emitting lower levels of CO2 are placed in lower tax bands, while those with higher emissions face higher tax rates. The goal is to incentivize the use of vehicles with lower environmental impact.
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Inflation: VED rates can be subject to periodic adjustments to account for inflation. The rates may increase in line with the Retail Price Index (RPI) to maintain their real value over time.
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Budgetary Considerations: Changes to VED rates can be influenced by the government's broader budgetary needs and priorities. Adjustments may be made to generate additional revenue or to align with the government's fiscal policies.
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Public Policy Goals: VED rates are often used to support broader public policy objectives, such as reducing air pollution and promoting the adoption of greener vehicles. The government may adjust rates to encourage the purchase of electric or low-emission vehicles.
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Vehicle Type: The type of vehicle, including fuel type and whether it's a private car or a commercial vehicle, can impact the VED rate.
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Government Announcements: Changes to VED rates are typically announced as part of the annual budget speech delivered by the Chancellor of the Exchequer. The proposed changes would then be subject to parliamentary approval.
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Author: Pete Barden:
Twitter: @pete_barden
Pete Barden is a qualified journalist who has written and produced for publications including The Sun (thesun.co.uk), New Statesman Media Group, Whatcar? (Whatcar.com) Stuff Magazine (Stuff.tv), Fastcar Magazine (Fastcar.co.uk), Maxim Magazine and UK broadcast stations within the Heart network (Formerly GCAP). Pete specialises in motoring and travel content, along with news and production roles. You can find out more about Pete Barden on LinkedIn.
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