Check your company car tax rate

The current company car tax rates apply from 2017 to 2020, after that there's a new 0% rate for electric vehicles - find out how much you'll pay if you drive a company car...

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Claire Evans
10 July 2019

Executive cars

Company car tax is designed to encourage business drivers to choose cars with lower CO2 emissions, so the amount payable rises on a sliding scale in line with emissions.

Historically, this has contributed to a big increase in the number of diesel cars on UK roads – around half of new cars registered each year are now diesels, compared with only 20% 10-15 years ago. However, it’s also helped to encourage the adoption of hybrid and electric vehicles among corporate drivers.

In 2015, the Government introduced legislation that gradually increases company car tax rates between 2015 and 2020, so that they continue to encourage drivers to choose cars with the lowest emissions.

At the same time, a 3% surcharge was introduced for diesel-engined cars to take into account their higher level of particulates, such as NOx. From 1 April 2018 this surcharge increased from 3% to 4%.

To promote ultra low emission vehicles (ULEVs), these benefit from reduced rates of company car tax. Electric vehicles currently attract a rate of 9% from April 2017.

However, an update to this was made in July 2019 with the announcement of company car tax rates for cars registered from 6 April 2020. Across the board, company car tax rates will be reduced by around 2% for cars registered from this date. The changes have been made in response to the increased CO2 emissions figures many cars now return, as highlighted by the introduction of the Worldwide Harmonised Light Vehicle Test Procedure (WLTP) in September 2018.

The new system splits cars into two groups for three years: those registered before 6 April 2020, and those registered on or after this date. 

Providing a boost for pure electric cars with zero CO2 tailpipe emissions, those registered from 6 April 2020 will have a 0% tax rate for 2020-2021. The tax rate for these vehicles will increase to 1% in 2021-2022 and 2% in 2022-2023.

The 0% tax rate will also apply to cars that produce 1-50g/km of CO2 and have a pure electric range of at least 130 miles, in 2020-2021. It will then rise to 1% in 2021-2022 and 2% in 2022-2023.

Company cars with emissions of from 1-50g/km and a pure electric mile range of 130 miles or more, first registered before 6 April 2020, will attract a 2% tax rate in 2020-2021 and this will stay the same for the two subsequent tax years.

From 2023-2024, fleets will revert to a single company car tax table – regardless of vehicle registration date – with realigned rates..

Check your company car tax rate

Company car tax bands from 6 April 2020

Cars registered before 6 April 2020

CO2 emissions g/km Electric range miles % rate 2020-21 % 2021-22 % 2022-23
0 n/a 0 1 2
1-50 >130 2 2 2
1-50 70-129 5 5 5
1-50 40-69 8 8 8
1-50 30-39 12 12 12
1-50 <30 14 14 14
51-54   15 15 15
55-59   16 16 16
60-64   17 17 17
65-69   18 18 18
70-74   19 19 19
75-79   20 20 20
80-84   21 21 21
85-89   22 22 22
90-94   23 23 23
95-99   24 24 24
100-104   25 25 25
105-109   26 26 26
110-114   27 27 27
115-119   28 28 28
120-124   29 29 29
125-129   30 30 30
130-134   31 31 31
135-139   32 32 32
140-144   33 33 33
145-149   34 34 34
150-154   35 35 35
155-159   36 36 36
160 and over   37 37 37
         

Cars registered from 6 April 2020

CO2 emissions g/km Electric range miles % rate 2020-21 % 2021-22 % 2022-23
0 n/a 0 1 2
1-50 >130 0 1 2
1-50 70-129 3 4 5
1-50 40-69 6 7 8
1-50 30-39 10 11 12
1-50 <30 12 13 14
51-54   13 14 15
55-59   14 15 16
60-64   15 16 17
65-69   16 17 18
70-74   17 18 19
75-79   18 19 20
80-84   19 20 21
85-89   20 21 22
90-94   21 22 23
95-99   22 23 24
100-104   23 24 25
105-109   24 25 26
110-114   25 26 27
115-119   26 27 28
120-124   27 28 29
125-129   28 29 30
130-134   29 30 31
135-139   30 31 32
140-144   31 32 33
145-149   32 33 34
150-154   33 34 35
155-159   34 35 36
160-164   35 36 37
165-169   36 37 37
170 and over                37 37 37

Company car tax bands 2017-2020

Figures for diesel cars with 3% surcharge are shown in brackets.

  • 0-50g/km – 9% (10%)
  • 51-75g/km – 13% (14%)
  • 76-94g/km – 17% (20%)
  • 95-99g/km – 18% (21%)
  • 100-104g/km – 19% (22%)
  • 105-109g/km – 20% (23%)
  • 110-114g/km – 21% (24%)
  • 115-119g/km – 22% (25%)
  • 120-124g/km – 23% (26%)
  • 125-129g/km – 24% (27%)
  • 130-134g/km – 25% (28%)
  • 135-139g/km – 26% (29%)
  • 140-144g/km – 27% (30%)
  • 145-149g/km – 28% (31%)
  • 150-154g/km – 29% (32%)
  • 155-159g/km – 30% (33%)
  • 160-164g/km – 31% (34%)
  • 165-169g/km – 32% (35%)
  • 170-174g/km – 33% (36%)
  • 175-179g/km – 34% (37%)
  • 180-184g/km – 35% (37%)
  • 185-189g/km – 36% (37%)
  • 190g/km or more - 37% (37%)

**Find out more about some of the most common executive company cars:

BMW 3 Series BMW 5 Series Audi A4 Audi A6 Mercedes-Benz C-Class Mercedes-Benz E-Class

Next: should you have a company car or take a cash allowance? >

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