First Year Car Tax: CO2 Bands, Diesel Rules, and Exemptions

First year car tax in the UK is a one-off Vehicle Excise Duty (VED) charge paid when a car is first registered, and the amount depends on the car’s CO2 emissions and fuel type. For cars registered on or after 1 April 2026, rates run from £10 for a zero-emission car to £5,690 for the highest-polluting models. After year one, every car moves to a flat annual rate, so this initial charge is the only time your specific emissions band directly sets what you pay.

First-Year Rates by CO2 Band

The figures below apply to cars registered on or after 1 April 2026. The first column covers petrol cars, diesel cars certified to the Real Driving Emissions 2 (RDE2) standard, alternative fuel vehicles, and zero-emission cars. The second column applies to diesel cars that meet only the older RDE standard.

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

The steps between bands can be steep. A petrol car at 130 g/km costs £455, but at 131 g/km the bill is £560, and crossing into 151–170 pushes it to £1,410. If you are choosing between trim levels or engine options that sit near a band boundary, those cliffs matter.¹

Why Diesel Cars Often Pay More

Diesel cars that have not been certified to RDE2 pay a higher first-year rate than petrol equivalents in the same CO2 band. RDE2 measures nitrogen oxide emissions under real driving conditions rather than only in a lab. A diesel that passes RDE2 is taxed the same as a petrol car. One that meets only the older RDE standard drops into the pricier column.

The gap widens as emissions climb. At 1–50 g/km the difference is just £20. At 131–150 g/km it is £850. At 191–225 g/km a non-RDE2 diesel costs £1,430 more than a petrol car with the same CO2 figure. Before signing anything on a diesel, confirm the RDE2 status in writing.¹

Electric and Alternative Fuel Cars

Fully electric and hydrogen fuel cell cars now pay a first-year rate of £10. Before April 2025 these vehicles were completely exempt from VED. That exemption has ended, and zero-emission cars sit inside the tax system alongside every other fuel type.²

Alternative fuel vehicles, which include hybrids and cars running on bioethanol or liquid petroleum gas, previously received a £10 annual discount against petrol cars in the same band. That discount was removed from April 2025. These vehicles now pay the same first-year rate as a petrol car or RDE2 diesel with matching CO2 emissions.²

The Expensive Car Supplement Is Not a First-Year Charge

You may have seen references to an additional £440 annual supplement on cars with a high list price. It does not apply during year one. The supplement runs from years two through six and kicks in at a list price above £40,000 for petrol, diesel, and alternative fuel cars, or above £50,000 for zero-emission cars registered on or after 1 April 2025. Worth knowing when comparing total ownership costs, but it will not appear on your initial registration bill.²

Finding Your Car’s CO2 Figure

For a new car, the manufacturer’s specifications and the window sticker show the official CO2 figure in grams per kilometre. These figures are produced using the Worldwide Harmonised Light Vehicle Test Procedure (WLTP), which replaced older lab tests in 2017–2018 to bring results closer to real-world driving.³

For a used car, the CO2 figure appears on the V5C registration certificate (the logbook). That is the figure DVLA uses when setting the tax band at first registration.⁴

How the First-Year Payment Actually Gets Made

If you buy a new car from a dealership, the first-year tax is almost always included in the “on the road” price. The dealer handles the registration and pays VED to DVLA before you collect the car. Check your invoice to confirm the tax has been itemised and paid.⁵

If you need to tax the car yourself, you have three routes. Online through the DVLA service at gov.uk/vehicle-tax, using a reference number from your V5C, the green new keeper slip, or a V11 reminder. By phone on 0300 123 4321, available 24 hours. Or at a Post Office branch that handles vehicle tax, bringing your V5C or new keeper slip, evidence of a valid MOT if the car is old enough to need one, and payment. In Northern Ireland, you also need a paper insurance certificate and an original MOT certificate.

First-year tax must be paid as a single lump sum. It cannot be split into monthly or six-monthly instalments (that option only applies from year two onwards, when the flat standard rate begins). There is no longer a paper tax disc, so keep whatever email confirmation or receipt you receive as your record.⁶

A Note on Exemptions

Very few cars are fully exempt from VED. Vehicles used solely by organisations transporting disabled people can qualify, as can cars driven by individuals receiving certain mobility allowances. Even a £0 rate still has to be taxed through the DVLA system: exempt does not mean unregistered. If you are not using or keeping a car on public roads, a Statutory Off Road Notification (SORN) removes the tax requirement, but the car cannot return to a public road until it is taxed again.⁷

Penalties for Skipping It

Driving or keeping an untaxed car carries real penalties. DVLA typically opens with an out-of-court settlement letter demanding £30 plus one and a half times the outstanding tax. If unpaid, the case can go to a magistrates’ court, where the maximum is £1,000 or five times the tax due, whichever is greater. If a SORN is in place and the car is driven on a public road anyway, the settlement rises to £30 plus double the outstanding tax, and the court maximum jumps to £2,500 or five times the tax due. DVLA can also clamp and crush untaxed vehicles found on public roads.⁸

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, Zero and Low Emission Vehicles
3
Vehicle Certification Agency. The Worldwide Harmonised Light Vehicle Test Procedure (WLTP)
4
Vehicle Certification Agency. General Points
5
GOV.UK. Vehicle Registration – New and Used Vehicles
6
GOV.UK. Tax Your Vehicle
7
GOV.UK. Register Your Vehicle as Off the Road (SORN)
8
Driver and Vehicle Licensing Agency. DVLA Enforcement of Vehicle Tax, Registration and Insurance Offences