Car tax: £200 a year for cars registered since April 2017

A car registered on or after 1 April 2017 pays £200 a year in vehicle tax from the second payment, according to GOV.UK’s vehicle tax rate tables. Paying monthly by Direct Debit comes to £210 over the year.

The first payment is a different figure. It is made when the car is first registered and covers the vehicle for a year. The amount depends on CO2 emissions, from £10 for a car that emits no CO2 to £5,690 for the highest band. Diesel cars that do not meet the RDE2 emissions standard pay a higher first-year rate in most bands.

Standard rates from the second payment

The same table covers petrol, diesel, electric and alternative fuel cars. The right-hand column shows what the rate becomes for cars that pay an extra £440 a year, explained below.

Paying in instalments costs more over the year. Monthly payments add up to £10 more than one annual payment. Two six-month payments come to £220, or £210 by Direct Debit.

Who pays the extra £440?

Drivers pay an extra £440 a year for five years from the second tax payment. It applies to petrol or diesel cars with a list price of more than £40,000 and to electric cars above £50,000. Adding it to the standard rate gives the £640 in the table. The list price is the published price before the car is first registered, before any discounts. A zero emission car registered before 1 April 2025 does not pay the extra.

Cars registered before April 2017

A car registered between 1 March 2001 and 31 March 2017 is taxed differently, and each car sits in a letter band from A to M. The car’s CO2 figure is shown on its V5C registration certificate. The table shows six of the 13 bands.

A car in band E pays the same as a newer car on the standard rate. For a new car that has not been registered yet, the Vehicle Certification Agency has a service to check tax rates for new unregistered cars. You need to know the fuel type, CO2 emissions and list price.