What is road tax, and how much is it?

Some things in life are certain: Arsenal scoring from a corner kick, your TV remote going missing every few weeks, and a tax being applied to just about anything you own. For the latter, it is especially important to understand how it works with cars – whether it be old, new, combustion or electric. 

Otherwise known as Vehicle Excise Duty (VED) in the UK, road tax is a fee that must be paid on all UK-registered vehicles that are either parked or driven on a public road. The cost is determined by factors like vehicle age and emissions rating, and tends to increase every April in accordance with inflation rates. 

That means change is going to happen again soon. So to make sure you’re in the know, and understand precisely how much you should be paying, read on for our all-encompassing guide on road tax. 

Petrol, diesel and hybrid cars: increases from April 2026

Tax rates for diesel, petrol and hybrid cars have seen a sharp increase over the last few years. They are calculated according to the amount of emissions they produce, and are broken down as follows:

- Cars emitting 1-50g/km of CO2 – Prices increased from £10 to £110 for 2025-26 for petrol and hybrid cars (£130 for diesels). This will increase to £115 for petrol and hybrid cars (£135 for diesels) for 2026-27. 

- Cars emitting 51-75g/km of CO2 – Prices increased from £30 to £130 for 2025-26. This will increase to £135 for petrol and hybrid cars (£280 for diesels) for 2026-27. 

- Cars emitting 76g/km of CO2 or more – Prices doubled in 2025-26 from their 2024-25 level. For perspective, the VED payable for a Ford Puma mild-hybrid (122g/km) is currently £440, while a Land Rover Defender (243g/km) costs £46800 for the first year. These prices will rise to £455 and £4850 from April 1 2026. 

What is the Expensive Car Supplement tax?

The expensive car supplement – also called ‘luxury car tax’ – was introduced in April 2017 as an added fee attached to cars that cost £40,000 or more. It is payable for five years, from the second year of registration. It is currently £425 and will rise to £440 from April 1 2026. 

Initially, electric cars (EVs) were exempt from the expensive cr supplement, but this exemption was removed from April 2025. However, because many mid-range family EVs cost more than $40,000, the government has upped the threshold for EVs to £50,000. 

Electric cars: no longer exempt from road tax

EVs had been exempt from paying road tax for many years, because they produce no emissions. However, this decision was reversed in April 2025, when the government announced that owners of new EVs would have to pay the next lowest first-year rate, which is currently £10, and then an annual flat rate of £195 thereafter. The annual fee will rise to £200 from April 1 2026. 

Owners of older EVs, registered between April 2017 and March 2025, are now also required to pay the same £195 annual flat rate. 

The reason for these changes is reduced fuel duty revenue (the tax you pay on each litre of petrol or diesel). Given 36% of UK drivers now either own or lease an EV, the UK treasury’s estimated £25 billion annual earnings from fuel duty will likely plummet if nationwide EV adoption continues to grow. As such, taxing owners is seen as the solution for recouping losses from fuel duty revenue. 

What is pay-per-mile? 

Announced in November 2025, pay-per-mile is an additional form of road tax on EVs that requires owners to pay 3p for every mile that they drive, while those driving plug-in hybrids (PHEVs) will be charged 1.5p per-mile. 

After a brief consultation period, the bill was passed in the 2025 Autumn Budget, and confirmed to be going live from April 2028. 

What are UK car tax bands, and how are they calculated?

Car tax bands are effectively tax brackets that vehicles are divided into, depending on factors such as age, cost, emission levels and fuel type. Generally speaking, a difference in tax bracket between cars registered after April 2017 is down to CO2 output, while the tax amount for cars registered before this is a little more skewed towards engine size. 

Below, we’ve provided a more detailed breakdown of tax band prices. 

For cars registered after 2017:

Note: After the first year, these cars will all be eligible for a standard annual price of £195 until 1 April 2026 when it will rise to £200. 

For cars registered between March 2001 and April 2017:

For cars registered before March 2001

How do I check how much tax I need to pay for my car?

You can check when your road tax expires using My What Car?, the free online reminder service from What Car?, which makes it easier to remember key motoring dates. My What Car? makes it easy to check, and can directly you to the gov.uk website to purchase tax online.

Alternatively, you can enter your vehicle’s registration number on gov.uk, and the system will tell you the tax status, renewal date and precise cost based on emissions or engine size. Closer to the renewal date, you can also use it to check how much your rate will increase the following year.

How do I pay my car tax?

There are three ways you can do this:

- Online – As ever, the quickest and simplest way to do things. Once you have your 11-digit vehicle reference number from your V5C (logbook) to hand, you simply visit this GOV.UK link and follow the instructions. You’ll receive a confirmation email shortly after. 

- By phone – The DVLA has a 24-hour service which can be used to tax your vehicle. Make sure to have your 11-digit V5C number with you to speed the process up. 

- At the post office – If you’ve made it to 2026 without a phone or the internet, you can visit your local post office and sort your vehicle tax out there. As with the other two methods, you’ll need your V5C here too. 

How often do I have to pay my car tax?

Paying your VED in one annual lump sum is the cheapest and most convenient method. Alternatively, you can choose to renew it at monthly or six-month intervals, though both of these will incur a five percent surcharge. 

If you’re paying by card, you can set it up to automatically renew a few days before your tax runs out. 

Is my car tax payment monitored?

Yes. In the UK, the DVLA uses various methods to ensure compliance: from dedicated ANPR cameras on the road, which scan your vehicle against the government database, to monthly checks of the database itself.  

What happens if I don’t pay my car tax?

Previously, there was a grace period of five days for you to tax your vehicle. This has since been abolished, so the onus is on you to make sure it stays consistently taxed. 

Should you be caught, you will receive an £80 fine – reduced to £40 if you pay it within the first 14 days of receiving the letter. This must also be coupled with any backdated tax renewals that were missed. 

If you continue to avoid paying, the fine could snowball until it reaches well over £1000, and you could run the risk of your vehicle being clamped or impounded. 

How does car tax work when I buy a new car?

When you buy a new car, the VED is usually calculated as part of the overall vehicle price. From the second year of ownership onwards, it will be your responsibility to pay the tax. 

How does car tax work when I buy a used car?

You will need to tax the vehicle yourself, since this is not transferable from seller to buyer. The buyer will alert the DVLA that the car is no longer theirs, and you will be issued a new V5C. 

At the time of sale, you must use the “new keeper details” section of the old V5C to set up a new tax payment for the vehicle. Only after this is done, and the vehicle is insured, may you drive it away. 

Can I tax a car that isn’t insured?

No, you can’t. When you try to pay for a vehicle’s tax, the DVLA checks for insurance validity, and if nothing shows up, the application will be immediately rejected. The only exception to this rule are vehicles classified as SORN. 

Do I still have to pay tax if my car is SORN? 

No, you can stop paying. A SORN (statutory off road notification) vehicle is one that isn’t being used on public roads, and kept on private land such as a driveway or garage. More often than not, it’s because that car is an insurance write-off. Declaring it as SORN means owners can save on paying insurance and tax. 

Can I get a refund on tax if I sell my car? 

If your car is scrapped, sold or classified as SORN, alert the DVLA immediately so it can reimburse you for any unused months of tax that you have paid for. Be aware that you will not receive a refund for any surcharges paid. 

Are there any cars exempt from tax?

The following vehicles don’t need to be taxed, but the DVLA must still be notified so it can issue an exemption: 

- Agricultural vehicles (mowing machines, steam vehicles etc…)

- Classic cars over 40 years old 

- Disabled passenger vehicles used by anyone receiving specific mobility allowances 

- SORN vehicles

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