Road Tax

UK Road Tax Explained 2026: VED Rates, Bands & How to Pay

Updated 20 May 2026 · 10 min read · By James Whitfield, Motoring Law Writer

✓ Reflects April 2025 VED rate changes including new EV road tax rules
JW
James Whitfield
Motoring Law Writer · 11 years covering UK traffic law and DVLA policy

James has written about UK motoring law and DVLA policy for over a decade. His guides on road tax, penalty points, and motoring regulations are regularly cited by consumer advice organisations. All rate figures in this article are sourced directly from GOV.UK and verified against current DVLA publications.

Key takeaways

  • UK road tax (VED) is calculated using three different systems depending on when your car was registered
  • Cars registered after April 2017 pay a flat rate of £195/year (from year 2 onwards)
  • From April 2025, electric cars now pay road tax — the zero-rate exemption has ended
  • Cars with a list price over £40,000 pay an extra £620 luxury supplement in years 2–6
  • Driving without road tax risks a £80 fixed penalty, clamping, or a court fine of up to £1,000

Vehicle Excise Duty — better known as road tax or car tax — is one of the mandatory costs of keeping a car on UK roads. It is not optional, and the DVLA actively enforces it using ANPR cameras across the UK road network.

The system is more complicated than most drivers realise, because there are three completely different rate regimes depending on when your car was registered. This guide explains all three, covers what changed in April 2025, and tells you exactly how to check, pay, and avoid penalties.

The three VED systems in the UK

System 1: Cars registered before 1 March 2001 (engine size-based)

Older cars pay road tax based purely on engine size, regardless of their actual emissions.

Engine sizeAnnual VED (2026)6-month rate
Up to 1549cc£180£99
Over 1549cc£295£162.25

System 2: Cars registered between 1 March 2001 and 31 March 2017 (CO2-based)

Cars from this era are taxed on their official CO2 emissions figure. Rates vary significantly — from £0 for the cleanest cars to £695 for the most polluting.

CO2 emissionsAnnual VED (2026)
Up to 100 g/km£0
101–110 g/km£20
111–120 g/km£35
121–130 g/km£160
131–140 g/km£190
141–150 g/km£210
151–165 g/km£255
166–175 g/km£295
176–185 g/km£335
186–200 g/km£385
201–225 g/km£445
226–255 g/km£610
Over 255 g/km£695

The CO2 figure used is the manufacturer's official NEDC value at the time of registration — not a modern WLTP test. You can find your car's official CO2 figure on the V5C registration document or via the GOV.UK vehicle enquiry service.

System 3: Cars registered on or after 1 April 2017 (flat rate)

From April 2017, the government introduced a simplified flat-rate system. Most cars pay a fixed annual amount from year 2 onwards, with a variable first-year rate based on CO2 emissions.

£195 Standard annual rate (petrol/diesel, from year 2)
£195 Electric car annual rate (from April 2025)
£815 Annual rate for cars over £40,000 list price (years 2–6)

First-year rates for new cars (registered April 2017 onwards)

In the first year of registration, new petrol and diesel cars pay a higher, CO2-linked first-year rate. This is paid by the dealer as part of the purchase process for new cars.

CO2 emissionsFirst-year VED rate
0 g/km (zero emission)£10
1–50 g/km£110
51–75 g/km£130
76–90 g/km£170
91–100 g/km£190
101–110 g/km£210
111–130 g/km£240
131–150 g/km£435
151–170 g/km£660
171–190 g/km£995
191–225 g/km£1,420
226–255 g/km£2,015
Over 255 g/km£2,745

April 2025 changes: electric cars now pay road tax

The most significant recent change to UK VED is the removal of the zero-rate exemption for electric vehicles, which took effect on 1 April 2025.

EV registration dateVED from April 2025
New EVs registered from 1 April 2025 (first year)£10
EVs registered from 1 April 2017 to 31 March 2025 (standard rate)£195/year
EVs registered before 1 April 2017 (CO2-based)Usually £0 (zero emission)
Any EV with original list price over £40,000 (years 2–6)£195 + £620 = £815/year
⚠️

Luxury EV surcharge: Many popular electric cars exceed the £40,000 list price threshold — including the Tesla Model 3, BMW i4, Audi Q4 e-tron, and Kia EV6. Owners of these vehicles now pay £815 per year in road tax from year 2–6 of registration. This significantly affects the EV running cost advantage over petrol.

How to pay your road tax

Road tax can be renewed online, by phone, or at a Post Office. The DVLA sends a reminder (V11 form) approximately 4 weeks before your existing tax expires.

  • Online: via the GOV.UK vehicle tax service at gov.uk/vehicle-tax — requires your V5C reference number or V11 reminder
  • By phone: 0300 123 4321 (24/7 automated service)
  • At a Post Office: any branch offering DVLA services — requires V5C or V11 plus valid MOT certificate and insurance details

You can pay annually or in 6-monthly instalments. Monthly Direct Debit is also available, but costs slightly more than annual payment (approximately 5% more over the year).

How to check if a car is taxed

You can check whether any UK vehicle is taxed using the free DVLA vehicle enquiry service at vehicleenquiry.service.gov.uk. Enter the registration number to see the tax status, MOT expiry date, and basic vehicle details.

ℹ️

Buying a used car? Always check the tax and MOT status before purchase. Road tax does not transfer with the vehicle — when you buy a used car, the previous owner's tax ends immediately and you must tax the car before driving it. The previous owner receives a pro-rata refund of any unused full months.

What happens if you don't pay road tax?

The DVLA enforces road tax through ANPR cameras, which automatically log untaxed vehicles on public roads. The consequences of driving without tax are serious:

  • Fixed Penalty Notice: £80 (reduced to £40 if paid within 28 days)
  • Clamping: DVLA enforcement agents can clamp your car — a release fee of £100 applies on top of the outstanding tax
  • Towing: if a clamped vehicle is not released within 24 hours, it can be towed to a DVLA pound — impound fees apply on top
  • Court prosecution: in serious or repeat cases, a fine of up to £1,000 can be imposed by a magistrate's court
🚨

Parked cars are not exempt: Your car can be clamped even if it is parked on a public road and not being driven. The only exception is a car kept entirely on private land and declared off the road via a Statutory Off Road Notification (SORN) with the DVLA.

🏷️ Find your exact road tax rate

Enter your car's registration year and CO2 figure to calculate your exact 2026 VED rate — including 6-month and monthly Direct Debit options.

Use the Road Tax Calculator →

Frequently asked questions

For most cars registered after April 2017, the standard flat-rate VED is £195 per year. Cars registered between March 2001 and March 2017 pay based on CO2 emissions, ranging from £0 (under 100g/km) to £695 (over 255g/km). Cars registered before March 2001 pay based on engine size: £180 (up to 1549cc) or £295 (larger engines).
Yes. From April 2025, electric cars registered on or after 1 April 2017 pay the standard £195 per year VED. New EVs registered from April 2025 pay a £10 first-year rate. EVs registered before April 2017 continue to pay based on CO2 (usually £0). EVs with a list price over £40,000 also pay the £620 luxury supplement in years 2–6 (total £815/year).
Driving without valid road tax risks an £80 fixed penalty (£40 if paid promptly), clamping with a £100 release fee, and potential towing to a DVLA pound. In serious cases, magistrates can impose fines of up to £1,000. DVLA ANPR cameras actively enforce road tax compliance across the UK road network. Your car can be clamped even while parked.
No. Road tax does not transfer with the vehicle. When you buy a used car, the seller's road tax ends immediately upon sale, and they receive a pro-rata refund of any unused full months. You must tax the car yourself before driving it away — you cannot legally drive the car on the previous owner's tax.