The new vehicle excise duty (VED) tax rates for 2023/2024 are here. The standard rate for VED has risen by £15 to £180 per year. First year VED tax rates have also increased.
VED tax costs for cars registered before April 2017 will also rise. Drivers of the most polluting cars could see their VED rates increase by £65.
Here are the new rates for 2023/2024 and our answers to common questions on car tax.
VED tax rates for tax year 2023/24
These are the first year VED rates for cars registered on or after 1 April 2023:
| C02 emissions (g/Km) | Petrol and clean diesel (£) first year rate | Standard rate |
|---|---|---|
|
0
|
0
|
0
|
|
1-50
|
10
|
£180
|
|
51-75
|
30
|
£180
|
|
76-90
|
130
|
£180
|
|
91-100
|
165
|
£180
|
|
101-110
|
185
|
£180
|
|
111-130
|
210
|
£180
|
|
131-150
|
255
|
£180
|
|
151-170
|
645
|
£180
|
|
171-190
|
1040
|
£180
|
|
191-225
|
1565
|
£180
|
|
226-255
|
2220
|
£180
|
|
Over 255
|
2605
|
£180
|
First year VED rates for alternatively fueled cars
After the first year, all petrol and diesel cars registered after April 2017 have to pay a flat fee of £180 a year. This is up from £165 in 2021/2022. For alternative fuels like biofuel, ethanol, hydrogen or anything other than pure electric, it's £170.
For cars priced over £40,000, there's an extra £390 to pay on top of the first year rate - up from £320 in 2022/2023. This payment lasts for 5 years. In total, petrol and diesel cars will pay £570. Alternatively fueled cars will pay £560.
VED tax cost for cars registered before April 2017
For cars registered before April 2017, the car tax scale splits into 13 bands (A to M). Here are the new tax rates for these vehicles:
| Band | C02 emissions (g/Km) | Petrol and diesel(£) |
|---|---|---|
|
A
|
Up to 100
|
0
|
|
B
|
101-110
|
20
|
|
C
|
111-120
|
35
|
|
D
|
121-130
|
150
|
|
E
|
131-140
|
180
|
|
F
|
141-150
|
200
|
|
G
|
151-165
|
240
|
|
H
|
166-175
|
290
|
|
I
|
176-185
|
320
|
|
J
|
186-200
|
365
|
|
K*
|
201-225
|
395
|
|
L
|
226-255
|
675
|
|
M
|
Over 255
|
695
|
* This includes cars with a CO2 figure over 225g/km but were registered before 23 March 2006
Alternatively fueled cars registered before 2017
What tax band is my car in?
To find out which car tax band you’re in visit the GOV.UK website. You can find the emissions of both new and used cars.
It’s also possible to check your vehicle tax status on the same website.
VED changes for EVs
In 2025, electric vehicle owners will have to pay car tax. The chancellor of the exchequer announced this in the 2022 autumn statement.
Electric cars don’t pay VED tax or fuel duty now. Fuel duty is a tax that’s part of the cost of petrol and diesel. As EVs become more popular, fewer people will pay these taxes.
So in 2025, the government will introduce a tax on EVs in an attempt to make up the £35 billion in tax revenue that could be lost.
What cars are exempt from paying VED?
You’re exempt from paying VED if your car is:
- Fully powered by electricity (until 2025)
- More than 40 years old
- Used by a person who has an eligible disability
- Used by an organisation that provides transport for people who have an eligible disability
- An agricultural vehicle
- Has a Statutory Off-Road Notice (SORN) attached to it
Even if you're exempt from paying VED, you still need to tax your car.
VED tax and car insurance
You can't tax your car if you don't have car insurance. When you apply for tax, the DVLA checks whether your car has a valid MOT and insurance. If it doesn't you won't be able to tax your car.
Failure to pay your car tax could result in an £80 fine (or £40 if you pay it in the specified period of time). If you’re stopped by the police and they discover you haven’t paid your car tax they could issue you with a fixed penalty notice of £1,000. The DVLA can also clamp your vehicle if it finds you haven't paid your car tax.
And if you don't have valid car insurance, you could face even tougher measures. So before you tax your car, check your car is insured.