Road Tax Guide: How Much It Costs, How to Pay & More
FixMyCar answers all your questions about Vehicle Excise Duty, also known as road tax.
Book a car repair nowEllie Dyer-Brown
Monday March 31 2025
9 min read
The official name for road tax is Vehicle Excise Duty (VED). It’s one of the main costs associated with owning a car - but what exactly is road tax, and why do we have to pay it? This guide covers everything you need to know.
April 2025 car tax changes
Road tax rates are changing from April 2025 onwards. Here are the key things to be aware of:
Electric vehicles will no longer be exempt from road tax. EVs registered after 1st April will have a first-year rate of £10 until 2029. However, cars worth over £40,000 must pay an additional 'expensive car supplement'.
EVs registered between 1st March 2001 and 30th March 2017 will pay £20 per year.
Owners of electric cars registered between 1st April 2017 and 31st March 2025 will pay the same standard car tax rate (£195 per year) as other motorists.
New cars emitting 51-75g/km of CO2 will see an increase from £30 (£20 for hybrids) to £135.
Electric vans will now be charged £355 in road tax, the same as petrol and diesel light goods vehicles.
All other vehicle tax rates will double next year, and standard rates beyond the first year will rise in line with the retail price index (RPI).
How much is my car tax in 2025?
£195 is the standard car tax rate from 1st April 2025. Hybrid vehicles are no longer eligible for a discount, and electric vehicles are no longer exempt from road tax. Ultimately, the amount you pay is decided by the year your car was first registered and what fuel it uses.
What is road tax?
Road tax, also known as VED or car tax, is a legal requirement for most road users. It involves annual payments to the Driver and Vehicle Licencing Agency (DVLA).
You must register for road tax when you buy a new car and renew it annually. The cost depends on your car’s emissions. Some motorists don’t have to pay if they are exempt for an official reason.
What does road tax pay for?
The money doesn’t go directly towards road maintenance like some people think. It is added to the central funds of the exchequer (the government’s annual budget) and spent on everything from education and healthcare to the police and local councils. Some will cover road maintenance, but the route between your road tax payment and filling potholes isn’t direct.
Do I need road tax?
If you use your car on public roads, you probably need to pay road tax.
When you buy a new car, two of the first things you should do are purchase insurance and pay road tax. The law requires you to have both of these things before you can drive anywhere. Even motorists exempt from paying for road tax must still tax their vehicles.
Learn more about car insurance and how to get it cheaper.
Car tax exemptions
You might not have to pay for road tax if any of the following bullet points apply to you:
You have a Statutory Off-Road Notice (SORN).
Your car was made before the 1st of January 1982.
The vehicle is used by a disabled person and is registered in their name or their nominated driver’s name.
From the 1st of April 2025, EVs will no longer be exempt from road tax.
How much is road tax?
Vehicles registered on or after 1st April 2017 pay an initial rate in the first year based on their emissions. From the second year onwards, this changes to a standard rate.
Petrol, diesel and hybrid cars registered between 1st March 2001 and 31st March 2017 are taxed in different amounts depending on their CO2 emissions. Greener vehicles pay a lower rate, which is good news if you own a hybrid. Older diesel models tend to pay the highest road tax.
The table below shows how much you can expect to pay based on your emissions band.
| Band and CO2 emissions | Annual rate |
|---|---|
| A, up to 100g/km | £20 |
| B, 101-110g/km | £20 |
| C, 111-120g/km | £35 |
| D, 121-130g/km | £165 |
| E, 131-140g/km | £195 |
| F, 141-150g/km | £215 |
| G, 151-165g/km | £265 |
| H, 166-175g/km | £315 |
| I, 176-185g/km | £345 |
| J, 186-200g/km | £395 |
| K, 201-225g/km | £430 |
| L, 226-255g/km | £735 |
| M, over 255g/km | £760 |
Tax for cars registered after 1st April 2017
The first year of tax for brand-new cars is based on emissions.
First-year rates
| CO2 emissions | Petrol, hybrid and RDE-2 compliant diesels - cost |
|---|---|
| 0g/km | £10 |
| 1-50g/km | £110 |
| 51-75g/km | £130 |
| 76-90g/km | £270 |
| 91-100g/km | £175 |
| 101-110g/km | £390 |
| 111-130g/km | £440 |
| 131-150g/km | £540 |
| 151-170g/km | £1,360 |
| 171-190g/km | £2,190 |
| 191-225g/km | £3,300 |
| 226-255g/km | £4,680 |
| Over 255g/km | £5,490 |
Second payment onwards
From 1st April 2025, the standard tax rate for all cars registered after 1st April 2017 is £195.
Owners of vehicles that cost over £40,000 when new must pay an expensive car supplement from the second to the sixth year of the car being on the road. The supplement increased in 2025 from £410 to £425.
Managing road tax
When is my road tax due?
Your road tax is due at the same time each year, and you can choose to either pay it all in one go or spread the cost out into 12 monthly instalments. The vehicle’s registered keeper will receive a tax reminder letter that outlines the expiry date. The road tax must have been paid by the end of that day - there are no exceptions.
How to check road tax
You can check your car’s road tax online using the government website.
How to cancel road tax
There are several reasons why you might want to cancel your road tax. For example, if your vehicle has been:
Taken off the road by submitting a Statutory Off-Road Notice (SORN)
Sold or transferred
Written off by an insurance company
Registered as exempt from tax
Stolen
Scrapped
Exported
You can cancel your vehicle tax and get a refund using the government website.
How to pay road tax
You should receive a V11 reminder later when it’s time to renew your road tax. You’ll need to use the reference number from that document to pay on the government website. Alternatively, you can use the reference number in your V5C logbook.
There are other ways to pay, including:
By phone - call 0300 123 4321.
At the Post Office - pay over the counter at a local branch using cash, cheque, Direct Debit, credit or debit card.
What documents do I need to tax my car?
You’ll need the reference number from one of the following documents to pay online:
A recent V11 reminder
Your V5C logbook (pictured below)
The green new keeper slip
If you decide to pay at the Post Office instead, you’ll also need a valid MOT certificate and an exemption certificate if you claim disabled vehicle tax.
Can you pay road tax monthly?
You can pay your road tax monthly by setting up a Direct Debit. This method allows you to choose whether to pay every month, every six months or annually.
How to report an untaxed vehicle
You can report untaxed vehicles here. First, you should use the government website to make sure you’re correct about the vehicle not being taxed. You’ll need to provide the car’s registration number, make, model and colour, and you’ll also need to include details about the town and postcode where you saw it.
How long can you drive without road tax?
Driving a car on public roads in the UK without road tax is illegal unless you are exempt or driving the vehicle straight to a pre-booked MOT test.
There used to be a five-day grace period to allow tax discs to be delivered in the post, but the new tax system is online, so the grace period no longer exists. You must have tax from the first moment you use the car on public roads.
You shouldn’t try driving for any length of time without road tax. Eventually, you will get caught.
Read about the most common driving offences and penalties.
What is the penalty for driving without road tax?
The Vehicle Excise and Regulation Act (1994) determines the penalties for driving without road tax. The DVLA enforces these penalties and can clamp your vehicle until the tax is paid.
If your vehicle is identified as untaxed and you haven’t declared it as SORN, a late licensing penalty will be imposed on the registered keeper, accompanied by an £80 fine. At this stage, no points will be added to your licence, and if you settle within 33 days, you may be eligible for a 50% discount, potentially reducing the financial burden.
If you use your vehicle on a public road again without taxing it, an out-of-court settlement letter will be issued. The fine will be £30 plus one and a half times the outstanding tax amount. Failing to pay this fine could mean putting the case into the magistrates’ court, where the penalty is either £1,000 or five times the outstanding tax - whichever figure is higher.
Driving your car on a public road with a SORN will result in an out-of-court letter and a fine of £30 plus twice the outstanding value of the tax. Again, failure to pay could land you in the magistrates’ court, resulting in a fine of £2,500.
Frequently asked questions
In short, no. You must first have insurance in place to tax your car, and you require both tax and insurance to be able to drive it on public roads.
While cars are taxed based on how much CO2 they create, motorcycles are simpler. Their tax is based on engine size (CC) - the larger the engine, the more you’ll be required to pay.
You can tax a vehicle without a V5C logbook if you are its registered keeper. However, you’ll need additional documents - namely, your V11 reminder and a valid MOT certificate. In the meantime, you should also apply for a new logbook.
Yes, you can insure a car without tax - getting insurance is a necessary step to tax your vehicle.
Road tax isn’t transferable. When you sell your car, the remainder of your tax won’t go with it, so you must report the sale of the vehicle to the DVLA. You will then automatically be given a refund for any remaining months.
Looking for affordable car repairs or maintenance? FixMyCar can help you find the right garage at the right price.
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Written by Ellie
Ellie is FixMyCar's content manager. She has over three years of experience writing about cars and regularly collaborates with automotive experts to provide trustworthy advice for drivers that is easy understand. Her work has been featured in Yahoo! Finance, iNews, The Daily Express and The Sun. She has a BA in English literature and an MA in creative writing from Durham University. Outside of work, Ellie follows F1 and eagerly awaits Ferrari's next era of dominance in the sport. She drives a Suzuki Swift.