Vehicle tax in Britain: £200 a year, £440 on top and up to £5,690 in year one

Vehicle tax — road tax in everyday speech — is now paid by almost every driver in Britain: electric cars were brought into it on 1 April 2025. The standard rate from the second tax payment onwards is £200 for 12 months, but a new car can be charged up to £5,690 in its first year, and an expensive one pays an extra £440 a year for five years. Here is what GOV.UK says about who pays what.

How much is vehicle tax a year?

£200 for 12 months is the standard rate from the second tax payment onwards for cars registered on or after 1 April 2017, the same for petrol, diesel, hybrid and electric. How you pay changes the total: 12 months in one payment is £200 (the same by Direct Debit), twelve monthly Direct Debit payments come to £210 a year, six months in one go is £110, and six months by Direct Debit £105. There is a 5% surcharge for paying monthly or every six months, and none for paying yearly.

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Why is the first year so much more expensive?

Because the first payment is set by CO2 emissions and is deliberately steep. When a new car is registered the scale runs: 0g/km — £10, 1 to 50g/km — £115, 51 to 75g/km — £135, 76 to 90g/km — £280, 91 to 100g/km — £365, 101 to 110g/km — £405, 111 to 130g/km — £455, 131 to 150g/km — £560, 151 to 170g/km — £1,410, 171 to 190g/km — £2,270, 191 to 225g/km — £3,420, 226 to 255g/km — £4,850, and over 255g/km — £5,690.

Diesel cars that do not meet the Real Driving Emissions 2 (RDE2) standard for nitrogen oxide sit in a separate column, a full step higher: a diesel at 131 to 150g/km pays £1,410 in its first year rather than £560. GOV.UK suggests asking the manufacturer whether a car meets RDE2. The payment covers 12 months, after which the car moves to the standard rate.

What is the extra £440 for expensive cars?

It is the list price supplement: £440 a year on top if the car or motorhome is listed above £40,000, or above £50,000 if electric. The yearly bill becomes £640, or £672 across twelve monthly Direct Debit payments, £352 for six months and £336 by Direct Debit.

Three conditions matter. The supplement runs for five years only, counted from the second time the vehicle is taxed. List price means the published price before any discounts, so what you actually paid does not change it — GOV.UK advises checking it with the dealer first. And it does not apply to a zero emission vehicle registered before 1 April 2025, while electric vehicles registered between 1 April 2025 and 31 March 2026 are covered.

Do electric cars really pay vehicle tax now?

Yes. Since 1 April 2025 electric cars, vans, motorcycles and tricycles pay vehicle tax; only electric lorries over 3,500kg remain exempt. Other exemptions survive: vehicles made before 1 January 1986, vehicles used by a disabled person (one at a time), vehicles run by organisations transporting disabled people, mobility vehicles and powered wheelchairs limited to 8mph on the road and 4mph on footways, steam vehicles, mowing machines and agricultural vehicles.

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And here is the trap: being exempt from paying does not exempt you from applying. GOV.UK says it twice — you must tax the vehicle even when there is nothing to pay.

What do you need in order to pay?

One of three reference numbers. The 16-digit number from a recent DVLA reminder or 'last chance' letter — it comes as a V11 letter, an email or a text. The 11-digit number from a V5C log book in your name. Or the green 'new keeper' slip if you have just bought the car. With none of these you must apply for a new log book, and can tax the car at the same time. Payment is by Direct Debit, debit or credit card.

Does the tax transfer to the buyer with the car?

No. Once you tell DVLA the vehicle has been sold, the tax is cancelled and you get a refund for every full remaining month. The buyer gains nothing: GOV.UK warns that tax is not transferred when you buy a vehicle, and you must tax it before you drive it — or declare it off the road with a SORN.

How do you check whether a car is taxed, and what if it is standing idle?

You check by registration number in the check vehicle tax service, which also shows whether a SORN is in place. If you have only just paid, do not panic at a mismatch: records can take up to 2 working days to update after approval.

If the car is not being driven, a SORN removes the tax and refunds any full remaining months. It starts immediately if the tax has already expired or if you apply outside the month the tax is due to end; apply in that final month and it starts on the first day of the next month. You apply with the 11-digit number from the V5C or the 16-digit one from the reminder, and you cannot use the vehicle on the road until it is taxed again. One more thing: you do not make a SORN for a car you have sold — you tell DVLA about the sale instead.