Car tax is one of those mandatory payments you just have to make, but not every car will pay the same. The government introduced car tax bands to decide exactly how much car tax each vehicle must pay. Let’s take a look at the current car tax bands and the changes coming in 2025.
👉 What is car tax and how does it work?Car tax is a payment you have to make every year to use the UK roads. This payment goes into a government fund, which is then used to improve roads and transport across the UK. Think of car tax like a yearly poll tax, except instead of one road it’s all the roads in the UK. The tax you pay depends on factors like emissions and engine size. If you choose not to pay car tax and are caught on the roads, you can face financial penalties and possible points on your licence.
Car tax banding is a way of making sure that people don’t pay more tax than they should. It’s a practice that has been in place for a long time. The tax you pay depends on various factors, like when your car was first registered. Let’s take a look at the different car tax bands and how the date your wheels were registered will impact your tax rate.
Currently, cars are broken down into three groups:
Cars registered before March 2001 are classed as private/light goods (PLG) vehicles. Within this area, there are two main categories.
| PLG Tax Class | 12 Months (£) | 6 Months (£) |
| Not over 1549cc | 210 | 115.50 |
| Over 1549cc | 345 | 189.75 |
In this category, things are slightly different. 13 car tax bands separate different vehicles, with the main factor in your tax rate being how much carbon dioxide (CO2) your car produces. During the 2001 to 2017 period, there was a commitment to getting more people into eco-friendly cars, with EVs and most hybrids avoiding car tax. With this car tax system, lower emissions equals lower car tax amounts.
| CO2 Emissions (g/km) | Annual Rate (%) | |
| A | Up to 100 | 0 |
| B | 101 - 110 | 20 |
| C | 111 - 120 | 35 |
| D | 121 - 130 | 100 |
| E | 131 - 140 | 190 |
| F | 141 - 150 | 210 |
| G | 151 - 165 | 255 |
| H | 166 - 175 | 305 |
| I | 176 - 185 | 335 |
| J | 185 - 200 | 385 |
| K | 201 - 225 | 410 |
| L | 226 - 255 | 710 |
| M | Over 225 | 735 |
A different car tax system is again used here, with rates changing depending on how long you have owned your car. For your first year, the amount of car tax will depend on CO2 emissions (how much pollution your car makes). By the second year through to the following years, the standard rate is applied. This standard rate sees drivers pay £190 per year. If you have a new car at a list price of £40,000 or above, you will have to pay an extra £410 in car tax for the first five years that the standard rate is applied.
| CO2 Emissions (g/km) | 1st Year Rate (£) | 2nd Year Rate (£) |
| 0 | 0 | |
| 1 - 50 | 10 | 190 |
| 51 - 75 | 30 | 190 |
| 76 - 90 | 135 | 190 |
| 91 - 100 | 175 | 190 |
| 101 - 110 | 195 | 190 |
| 111 - 130 | 220 | 190 |
| 131 - 150 | 270 | 190 |
| 151 - 170 | 680 | 190 |
| 171 - 190 | 1095 | 190 |
| 191 - 225 | 1650 | 190 |
| 225 - 255 | 2340 | 190 |
| Over 255 | 2745 | 190 |
There are two ways to check what tax band your car is in: manually and automatically. If you are looking for a manual approach, use this blog and do your own research to see where your car fits in on the above tables. If you are looking for something quick and easy, why not consider a free online checker? Car Tax Check provides a free check, where all you have to do is enter your car reg, click submit and find your answers. This will then display plenty of useful info about your car. You can find the following about your wheels via this free site:
This service not only shows you what tax band your car is, but also whether your tax and MOT have been paid. Missing MOTs is a common issue that we’ve covered in a separate piece here.
You can pay your car tax online and in person. To pay online, visit GOV.UK’s online tax form. To tax your car, you’ll need to have a reference number that you can find via:
If tech isn’t your thing and you’d rather pay in person, visit a Post Office that can take car tax payments. Again, you will need a reference number plus a payment option. You might need proof of an MOT in order to pay car tax, so be ready to show this. You can also contact the DVLA tax service via mobile but can’t make payments over the phone.
As mentioned earlier, electric cars have historically been given an easy ride when it comes to taxes. This was a deliberate action by the government to try and get more people driving electric vehicles (EVs) and hybrids. As time has gone on and more people have taken up greener motors, the government has started to miss out on potentially millions of pounds in car tax. This has led to a major switch up in car tax policy for 2025, announced by Rachel Reeves in the 2024 Labour budget. From 2025 onwards, EVs will be charged the standard rates, plus an additional amount if the car was purchased for £40,000 and a showroom tax.
Car tax bands have been a way for the government to fairly charge people based on their car size, emissions and engine size. As time has passed, the driving landscape has evolved, and so have car tax bands. This change is set to be felt the most in 2025, with EVs set to be charged from 2025 onwards.
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