How Vehicle Tax (VED) actually works

Two different systems, depending on age

Vehicle Excise Duty (VED) — still called road tax by basically everyone — isn't one simple system, it's two, split by registration date. Cars registered from 1 April 2017 onward use the CO₂-based first-year rate followed by a flat standard rate, covered below. Anything older runs on an earlier system based on engine size (pre-2001) or a different set of CO₂ bands (2001–2017), and it's usually cheaper for smaller, older cars than the current rules would be.

First year, then a flat rate

For anything registered after April 2017: year one is priced by CO₂ emissions (check the V5C for the figure) — the dirtier the car, the steeper the rate. From year two, nearly everything drops to a flat £200 a year, emissions irrelevant. A thrifty hatchback and a thirsty performance car cost exactly the same to tax from that point on.

The expensive car supplement

Cars with a list price over £50,000 when new get hit with an extra £440 a year on top of the standard rate, for five years starting in year two. Work it through and that's £640 a year for years two through six, dropping back to £200 once the five years are up.

Electric cars used to dodge all of this — not anymore. Since April 2025 they're taxed exactly like petrol and diesel, expensive car supplement included if the list price was over £50,000. Their first-year rate still tends to be low, though, since it's based on their minimal emissions figure.

SORN and exemptions

Vehicle sitting unused off the road? Declare a SORN (Statutory Off Road Notification) and the VED stops until it's back in use. A handful of vehicle types are exempt regardless of age — certain disabled-driver schemes, and anything over 40 years old registered as a historic vehicle.

Our Vehicle Tax Calculator estimates the first-year and standard-rate VED for anything registered after April 2017 — grab the CO₂ figure and list price from the V5C for the most accurate number.