Car tax rates 2024/25

Understand the 2024/2025 car tax rates - with details for cars registered before and after April 2017

By BuyaCar team March 15, 2024

If you're looking for the latest car tax rates for 2024/25 you've come to the right place. Following the 2024 Budget, we have the latest car tax prices which come into effect on April 1st 2024. 

While we may no longer have tax discs (despite the picture above), understanding the various tax systems can be complicated.

The amount that you pay can depend on a vehicle's CO2 emissions, the date it was first registered, the fuel it uses and the price when new.

For most people the big difference is whether your car was registered before or after the 1st April 2017. This is a key date for many used car buyers.

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If you're looking to buy a low emissions car, it will be cheaper to tax if registered before this date. However, higher emissions cars will be far more expensive, so it's best looking for a vehicle registered after. That's because the system changed from CO2 emissions based to a standard rate for all cars.

For cars registered after 1st April 2017, the current annual car tax rates (as of April 2024) are £190 for petrol and diesel cars and £180 for alternative fuel vehicles. These include PHEVs, hybrids, bioethanol and LPG.

Car tax for cars from April 1 2017

The current car tax system is simple enough: most drivers will be charged £190 per year. Electric cars are currently exempt from tax while hybrids (officially classed as alternative fuel cars) get a £10 annual discount. These are the rates from the second year of tax.

However, this is changing in April 2025 when all cars, electric, hybrid, petrol or diesel, will pay the same £190 a year.

CO2 emissions (g/km)

Petrol and diesel cars

Alternative fuel cars*

1-50 £0 £0
51-75 £190 £180
76-90 £190 £180
91-100 £190 £180
101-110 £190 £180
111-130 £190 £180
131-150 £190 £180
151-170 £190 £180
171-190 £190 £180
191-225 £190 £180
226-255 £190 £180
Over 255 £190 £180

*Alternative fuel includes PHEVs, hybrids, bioethanol and LPG

First year tax rates

To slightly complicate things, the first year tax rates are decided by CO2 emissions. The higher the emissions, the more tax you will have to pay for the first 12 months. After this, the rate reverts to the standard £190 or £180 for alternative fuel vehicles.

CO2 emissions (g/km) First-year VED
0 £0
1 - 50 £10
51 - 75 £30
76 - 90 £135
91 - 100 £175
101 - 110 £195
111 - 130 £220
131 - 150 £270
151 - 170 £680
171 - 190 £1095
191 - 225 £1650
226 - 255 £2340
Over 255 £2745

Expensive Car Supplement tax rates

Owners of more expensive cars will also have to pay an premium extra - called the Expensive Car Supplement. This is a £410 surcharge on cars with a list price of £40,000 or more, which brings the annual tax rate to £600. It's imposed for five years (from the second year the car is taxed) - until your car is six years old.

Fuel type 12 month payment
Petrol or diesel £600
Electric £0
Alternative £590

Calculating a car's list price for tax

The list price doesn't include any new car discounts, so you may pay much less than £40,000 for a car, but still be liable for the £410 surcharge. The list price includes:

  • The manufacturer's recommended retail price
  • The full price of any additional factory-fitted options
  • VAT
  • Delivery charges
  • The full cost of the battery in an electric car (if the battery is being leased)

Any accessories fitted by a dealership, such as floor mats, do not count towards the list price. Neither does the first registration fee or any warranty, service or insurance packages, according to the DVLA. Importantly this is based on the vehicle list price the day before it is first registered and taxed.

Car tax for cars between March 1 2001 and March 31 2017

If your car was registered after before April 2017 (but after 2001) then it sits in a different car tax system, this one based on CO2 emissions. The good news is that if you have a low CO2 car, it is very cheap to run, in some cases it can cost £0 each year, although this band is disappearing in 2025 so the cheapest rate will be £20 a year.

Still, it makes sense if you're looking at cars from around 2017 to 2018 to check when it was registered. A few months could make a big difference in your annual car tax bill. This works both ways though as high emissions cars will cost a lot more pre-2017 than after.

If your car is a hybrid, or powered by compressed natural gas (CNG) or liquefied petroleum gas (LPG) then they are taxed as alternative fuel cars.

VED band CO2 emissions (g/km) Petrol and Diesel cars Alternative fuel cars
A Up to 100 £0 £0
B 101-110 £20 £10
C 111-120 £35 £25
D 121-130 £160 £150
E 131-140 £190 £180
F 141-150 £210 £200
G 151-165 £255 £245
H 166-175 £305 £295
I 176-185 £335 £325
J 186-200 £385 £375
201-225 £415 £405
L 226-255 £710 £700
M Over 255 £735 £725

 Includes cars emitting over 225g/km registered before 23 March 2006

Car tax for cars pre-March 2001

Car tax rates used to be based on engine size. These were replaced by the current regime in March 2001, but still apply to vehicles registered before then. Fortunately this is nice and simple.


Engine size 12 month rate
1549cc and below £210
Above 1549cc £345

Classic car tax

Classic cars 40 years or older are exempt from car tax. This means vehicle built before 1 January 1984 will be tax free from April 1 2024.

If you do not know when your vehicle was built, but it was first registered before 8 January 1983, it will still be tax exempt. It doesn't happen automatically though, you have to apply for historic vehicle status at a Post Office, although it's fairly straightforward. The site explains more.

The 40 year exemption is a rolling date, so from April 2025, cars built and/or registered before 1 January 1985 will become tax exempt.

Is car tax going to change?

The Government periodically looks into how the car tax system might need to adapt as the types of car being sold change. With electric cars becoming increasingly mainstream, it's no surprise that from April 2025, electric cars will no longer be free to tax.

Instead, electric car owners drivers will have to pay the standard rate of £190. The exemption from the premium rate will also come to an end. This means that electric cars with a list price of £40,000 or more will be charged an extra £410 per year for VED.

There will also be changes that affect petrol and diesel cars registered between 1 March 2001 and 1 April 2017.

Cars currently in Band A (which emit less than 100g/km of CO2) will be moved into Band B on 1 April 2025 - a move that will see millions of cars charged car tax VED for the first time. That said, with an increase from £0 to £20, these cars will still be cheap to run. The car tax discount for hybrid cars will also end in 2025.