UK Road Tax Calculator 2024
Calculate your Vehicle Excise Duty (VED) based on official UK government rates
Your Road Tax Calculation
How is UK Road Tax Calculated? The Complete 2024 Guide
Understanding how UK road tax (officially called Vehicle Excise Duty or VED) is calculated can save you hundreds of pounds when buying a new car. This comprehensive guide explains the current system, including the different rates for petrol, diesel, electric, and hybrid vehicles, as well as the special rules for expensive cars.
What is UK Road Tax (VED)?
Vehicle Excise Duty (VED), commonly known as road tax or car tax, is an annual tax that must be paid for most types of vehicles that are driven or parked on public roads in the UK. The revenue from VED goes into the general taxation pot rather than being ring-fenced for road maintenance.
Key Facts About UK Road Tax:
- Mandatory for all vehicles unless exempt
- Based on CO₂ emissions for cars registered after 1 April 2017
- Different rates for first year and subsequent years
- Expensive cars (over £40,000) pay a supplement for 5 years
- Electric vehicles pay £0 VED (until April 2025)
How Road Tax is Calculated for Cars Registered After 1 April 2017
For cars registered on or after 1 April 2017, the VED system is based primarily on CO₂ emissions. The calculation involves two main components:
1. First Year Rate (Showroom Tax)
The first year rate depends on the vehicle’s CO₂ emissions and is paid when you register a new car. This is often called the “showroom tax”.
| CO₂ Emissions (g/km) | Standard Rate (£) | Alternative Fuel (£) |
|---|---|---|
| 0 | £0 | £0 |
| 1 – 50 | £10 | £0 |
| 51 – 75 | £25 | £15 |
| 76 – 90 | £115 | £105 |
| 91 – 100 | £145 | £135 |
| 101 – 110 | £170 | £160 |
| 111 – 130 | £190 | £180 |
| 131 – 150 | £225 | £215 |
| 151 – 170 | £570 | £560 |
| 171 – 190 | £910 | £900 |
| 191 – 225 | £1,345 | £1,335 |
| 226 – 255 | £1,915 | £1,905 |
| Over 255 | £2,245 | £2,235 |
2. Standard Annual Rate
After the first year, most vehicles move to a standard annual rate, which depends on the fuel type:
- Petrol or diesel: £180 per year
- Alternative fuel (hybrids, bioethanol, LPG): £170 per year
- Electric vehicles: £0 per year (until April 2025)
3. Expensive Car Supplement
If your car has a list price of more than £40,000 (including optional extras), you’ll have to pay an additional £390 per year for 5 years (from the second time the vehicle is taxed). This applies to:
- Petrol and diesel cars
- Alternative fuel vehicles
- Electric vehicles (from April 2025)
Road Tax for Cars Registered Before 1 April 2017
For cars registered before 1 April 2017, the VED is calculated based on CO₂ emissions and fuel type, but the bands are different:
| CO₂ Emissions (g/km) | Band | Annual Rate (£) |
|---|---|---|
| Up to 100 | A | £0 |
| 101 – 110 | B | £20 |
| 111 – 120 | C | £35 |
| 121 – 130 | D | £125 |
| 131 – 140 | E | £150 |
| 141 – 150 | F | £170 |
| 151 – 165 | G | £210 |
| 166 – 175 | H | £250 |
| 176 – 185 | I | £270 |
| 186 – 200 | J | £315 |
| 201 – 225 | K* | £340 |
| 226 – 255 | L | £600 |
| Over 255 | M | £630 |
*Includes cars emitting over 225g/km registered before 23 March 2006
Road Tax for Different Vehicle Types
Motorcycles and Scooters
Motorcycles and scooters are taxed based on engine size:
- Up to 150cc: £25 per year
- 151cc to 400cc: £49 per year
- Over 400cc: £109 per year
Light Goods Vehicles (Vans)
Most vans are taxed at a flat rate:
- Petrol or diesel vans: £320 per year
- Electric vans: £0 per year (until April 2025)
- From April 2025, EVs will pay the lowest standard rate (£10 per year)
- EVs over £40,000 will also pay the expensive car supplement from year 2 to 6
- Online via the GOV.UK website
- By phone (0300 123 4321)
- At a Post Office that deals with vehicle tax
- The 11-digit reference number from your vehicle log book (V5C)
- The 16-digit reference number from your vehicle tax reminder letter (V11)
- The 11-digit reference number from your last MOT certificate
- Vehicles used by a disabled person
- Disabled passenger vehicles
- Mobility scooters and powered wheelchairs
- Historic vehicles (over 40 years old)
- Electric vehicles (until April 2025)
- Vehicles only used on private land
- Agricultural, horticultural and forestry vehicles
- A fine of £80 (reduced to £40 if paid within 28 days)
- Prosecution with a maximum fine of £1,000
- Your vehicle being clamped or impounded
- Electric vehicles will no longer be exempt from VED (will pay £10 per year)
- The expensive car supplement will apply to electric vehicles over £40,000
- All rates will be adjusted for inflation
- Choose a low-emission vehicle – Cars with CO₂ emissions under 100g/km qualify for lower tax bands
- Consider alternative fuels – Hybrid and biofuel vehicles often qualify for reduced rates
- Buy used – Cars registered before April 2017 may have lower tax rates
- Avoid expensive cars – Vehicles over £40,000 incur the expensive car supplement
- Check for exemptions – Some vehicles (like historic cars) are completely exempt
- Pay annually – While you can pay monthly or every 6 months, paying annually is slightly cheaper
Electric Vehicles (EVs)
Currently, pure electric vehicles (EVs) pay £0 VED. However, this is changing:
How to Pay Your Road Tax
You can pay your road tax:
You’ll need either:
Road Tax Exemptions
Some vehicles are exempt from paying VED:
Common Questions About UK Road Tax
Do I need to tax my car if I’m not driving it?
Yes, if your vehicle is registered as ‘on the road’ (even if you’re not driving it), you must tax it unless you’ve made a Statutory Off Road Notification (SORN).
What happens if I don’t pay my road tax?
If you’re caught driving without road tax, you could face:
Can I transfer road tax to a new owner?
No, road tax doesn’t transfer with the vehicle. When you sell a car, any remaining tax is automatically cancelled and the new owner must tax the vehicle before driving it.
How is road tax different from car insurance?
Road tax (VED) is a tax paid to the government, while car insurance is a private contract that protects you financially in case of accidents. Both are legal requirements to drive on UK roads.
Future Changes to UK Road Tax
The UK government has announced several changes to VED coming into effect from April 2025:
These changes reflect the growing number of electric vehicles on UK roads and the need to maintain tax revenue as the country transitions to net zero emissions.
How to Reduce Your Road Tax
If you’re looking to minimize your road tax costs, consider these strategies:
Road Tax vs. Other Motoring Costs
While road tax is an important consideration when buying a car, it’s just one of many costs associated with vehicle ownership. Here’s how it compares to other typical motoring expenses:
| Expense Type | Average Annual Cost | Notes |
|---|---|---|
| Road Tax (VED) | £180 | Standard rate for petrol/diesel cars |
| Car Insurance | £471 | Average comprehensive policy (2024) |
| Fuel | £1,200 | Based on 8,000 miles/year at 45mpg |
| MOT Test | £54.85 | Maximum fee for MOT test |
| Servicing | £200-£400 | Annual service cost |
| Depreciation | £1,500-£3,000 | Average annual depreciation |
As you can see, while road tax is an important consideration, fuel costs and depreciation typically represent much larger expenses over the life of a vehicle.