Emissions-Based Car Tax: CO2 Bands, Rates, and Exemptions

Emissions-based car tax in the UK, formally Vehicle Excise Duty, charges you an annual fee linked to your car’s CO2 output, its registration date, its list price, and its fuel type. For cars registered from April 2026, the first-year charge runs from £10 for a zero-emission car to £5,690 for the heaviest polluters, and most cars then drop to a flat standard rate of £200 a year. Electric cars lost their exemption on 1 April 2025 and now pay too.

First-Year Rate by CO2 Band

When a car is first registered, it pays a one-off first-year rate set by its CO2 figure in grams per kilometre. For cars registered from April 2026, the bands are:

0 g/km: £10
1–50 g/km: £115 (£135 for non-RDE2 diesels)
51–75 g/km: £135 (£280 for non-RDE2 diesels)
76–90 g/km: £280 (£365 for non-RDE2 diesels)
91–100 g/km: £365 (£405 for non-RDE2 diesels)
101–110 g/km: £405 (£455 for non-RDE2 diesels)
111–130 g/km: £455 (£560 for non-RDE2 diesels)
131–150 g/km: £560 (£1,410 for non-RDE2 diesels)
151–170 g/km: £1,410 (£2,270 for non-RDE2 diesels)
171–190 g/km: £2,270 (£3,420 for non-RDE2 diesels)
191–225 g/km: £3,420 (£4,850 for non-RDE2 diesels)
226–255 g/km: £4,850 (£5,690 for non-RDE2 diesels)
Over 255 g/km: £5,690

Diesel cars that haven’t been certified to the newer RDE2 emissions standard pay the higher rate shown in each band. A diesel that does meet RDE2 pays the same as a petrol car in the same band.¹

The jumps between bands get steep fast. A family car at 130 g/km costs £455 in year one; a performance car at 170 g/km costs £1,410.

Standard Rate From Year Two

From the second time the car is taxed, almost every car registered on or after 1 April 2017 pays a flat annual rate of £200 for the 2026 tax year, regardless of CO2.¹

Until April 2025, alternative-fuel cars like hybrids got a £10 annual discount on the standard rate. That’s gone. Petrol, diesel, hybrid, and zero-emission cars all pay the same £200 now.²

You don’t have to pay the £200 in one go. Direct Debit spreads it over 12 monthly instalments totalling £210, or two six-monthly payments of £105. Paying for six months without Direct Debit costs £110. The extra roughly 5% is the price of splitting the bill.¹

The Expensive Car Supplement

Cars above a list-price threshold owe an extra £440 a year on top of the standard rate for five years, starting from the second time the vehicle is taxed. The threshold is £40,000 for petrol, diesel, and hybrid cars, and £50,000 for fully electric cars.³

So a £45,000 petrol car pays £640 a year (£200 plus £440) from years two through six, then drops back to £200. A £45,000 electric car escapes the supplement entirely because it sits under the £50,000 electric threshold.

The list price used is the manufacturer’s published price on the day before first registration, including factory-fitted options and VAT. It’s not what you negotiated, not what the car is worth now, and not affected by a secondhand discount. Check your original purchase paperwork if you’re not sure.

Electric and Zero-Emission Cars

From 1 April 2025, electric and other zero-emission cars pay VED for the first time. Before that date they were fully exempt. Every EV owner now owes vehicle tax, whether the car is new or years old.²

The rates sit at the lowest band. A new zero-emission car registered from April 2026 pays £10 in its first year, then £200 a year from year two. If the list price is above £50,000, the £440 supplement also applies for five years, bringing the annual bill to £640.¹

The gap between EVs and high-emission cars is still large. A zero-emission car pays £10 in year one where a 200 g/km petrol car pays £3,420.

Cars Registered Before April 2017

Different registration dates use different systems, and the difference in what you pay can be substantial.

If your car was registered between 1 March 2001 and 31 March 2017, it stays on an annual rate tied to its CO2 band rather than the £200 flat rate. Bands run from A (up to 100 g/km, £20 a year) to M (over 255 g/km, £790 a year).⁴ A low-emission car from this period can actually be cheaper to tax than a newer one: a Band B car at 105 g/km pays just £20 a year, where the same emissions on a post-2017 car would cost £200 from year two. A Band M gas guzzler from this era pays £790. The expensive car supplement doesn’t apply to these older cars.

Cars registered before 1 March 2001 use engine size instead of CO2. Engines up to 1,549cc cost £230 a year; anything larger costs £375.⁵

Who Doesn’t Pay

Two groups get free vehicle tax, though both still have to go through the tax process to record it.

Cars built before 1 January 1986 qualify for free vehicle tax from April 2026 under the rolling historic exemption. If you don’t know the exact build date but the car was first registered before 8 January 1986, you can still apply.⁶

You can also apply for free vehicle tax if you receive the higher or enhanced rate mobility component of a qualifying disability benefit. Qualifying benefits include Personal Independence Payment, Disability Living Allowance, Adult Disability Payment, Child Disability Payment, Armed Forces Independence Payment, and War Pensioners’ Mobility Supplement.⁷

How to Check Your Own Rate

Your V5C registration certificate (the logbook) has the three details that decide everything: the CO2 figure in grams per kilometre, the date of first registration, and the fuel type. The registration date tells you which system applies, the CO2 figure gives you the band, and the fuel type flags whether the diesel surcharge or the older alternative-fuel treatment is relevant.³

For a post-April 2017 car, you also need the original list price, including factory options and VAT, to check the £40,000 or £50,000 supplement threshold. Your purchase invoice or the manufacturer can confirm this.

Paying and What Happens if You Don’t

The quickest way to pay is the GOV.UK online service, using the 11-digit reference from your V5C, the 16-digit number from a DVLA reminder, or the 12-digit reference on the new keeper slip. Phone and Post Office payment are also available.⁸

If you’re taking a car off the road entirely and won’t be using it on public roads, you can file a Statutory Off Road Notification (SORN) instead of taxing it. You can’t legally drive a SORN’d car on public roads.⁹

Fail to either tax the car or declare a SORN and DVLA issues an automatic £80 penalty, halved to £40 if paid within 33 days. Get caught driving untaxed and the fine is £30 plus one and a half times the tax owed; ignore that and a magistrates’ court can impose up to £1,000 or five times the tax owed, whichever is greater. DVLA can also clamp or impound the vehicle. There is no grace period once your tax expires.

1
Gov.uk. Rates of Vehicle Tax for Cars, Motorcycles, Light Goods Vehicles and Private Light Goods Vehicles April 2026
2
GOV.UK. Vehicle Tax for Electric and Low Emissions Vehicles
3
GOV.UK. Vehicle Tax Rates – Cars Registered on or After 1 April 2017
4
GOV.UK. Vehicle Tax Rates – Cars Registered Between 1 March 2001 and 31 March 2017
5
GOV.UK. Vehicle Tax Rates – Cars and Light Goods Vehicles Registered Before 1 March 2001
6
GOV.UK. MOT and Vehicle Tax – Historic Vehicle Tax Exemption
7
Gov.uk. How to Apply for Free Disabled Tax
8
GOV.UK. Tax Your Vehicle
9
GOV.UK. Register Your Vehicle as Off the Road (SORN)