The UK government has officially released the car tax bands 2025, introducing new vehicle tax structures that will impact most drivers from April onwards. Whether you drive a petrol, diesel, hybrid, or electric vehicle, these updated VED road tax cost UK rules determine exactly how much you’ll be paying for vehicle excise duty (VED) in 2025.
Car owners across the UK are now required to understand these new brackets, as changes in CO2 emissions bands, list price thresholds, and annual increases affect what’s owed. For anyone registering a new vehicle or renewing their tax, it’s vital to stay informed about the latest car tax bands 2025 rates.
What Are VED Bands and Why Are They Changing in 2025?
Vehicle Excise Duty (VED), also referred to as car tax, is an annual charge on vehicles registered in the UK. The car tax bands 2025 reflect updated policies based on vehicle emissions, first-year registration, and fuel type. The government uses VED to promote greener transportation by charging higher rates for more polluting vehicles.
The VED road tax cost UK increases are part of the broader environmental push toward zero-emission vehicles and carbon reduction goals. As a result, many drivers will notice slight increases or new thresholds in their tax due this year.
Breakdown of the 2025 Car Tax Bands
Understanding how the car tax bands 2025 apply to your vehicle starts with checking your CO2 emissions and registration year. First-year rates are often higher for new cars and decrease in following years unless your car exceeds certain price limits.
Here is a simplified table of the VED road tax cost UK structure for 2025:
| CO2 Emissions (g/km) | First-Year Rate | Standard Rate (2nd year onwards) |
|---|---|---|
| 0 (electric vehicles) | £0 | £0 |
| 1–50 (hybrids/PHEVs) | £10 | £180 |
| 51–75 | £30 | £190 |
| 76–150 | £130 | £190 |
| 151–170 | £585 | £190 |
| 171–190 | £945 | £190 |
| 191–225 | £1,420 | £190 |
| 226–255 | £2,015 | £190 |
| Over 255 | £2,745 | £190 |
Keep in mind: cars with a list price over £40,000 still incur an additional £410 luxury surcharge from years 2 to 6 under the car tax bands 2025.
How the New Bands Affect Vehicle Owners
The updated VED road tax cost UK has multiple implications for drivers:
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New car buyers will need to calculate the one-time first-year tax based on emissions.
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Owners of high-emission vehicles face increased first-year costs.
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Electric vehicle drivers continue to benefit from a £0 VED rate (until 2026).
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Luxury vehicle owners must pay the higher supplement if their car exceeds £40,000 in price.
Those renewing their car tax this year should check the official VED calculator or DVLA portal to find their applicable rate based on the car tax bands 2025 chart.
Tips for Reducing Your Car Tax Bill
To minimise your VED road tax cost UK, consider these practical options:
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Opt for a low-emission or electric car
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Lease vehicles that fall into the 1–50g/km band
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Register new vehicles strategically (before price increases)
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Reassess insurance and tax bundles for better annual value
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Keep your vehicle regularly serviced to ensure emission standards are met
With stricter emissions policies rolling out in future years, switching to greener vehicles now can lock in lower taxes for the long term.
Conclusion
The new car tax bands 2025 mark another step in the UK’s effort to balance vehicle ownership with environmental responsibility. The adjusted VED road tax cost UK impacts almost every type of vehicle, whether new or old. Car owners should take time to review their vehicle’s CO2 output, registration value, and price class to fully understand how these changes apply to them.
By staying informed and making smarter vehicle choices, UK drivers can manage their road tax obligations more efficiently while contributing to a greener future.
FAQs
What are the new car tax bands for 2025?
The car tax bands 2025 are based on CO2 emissions, with electric vehicles paying £0, and high-emission cars paying up to £2,745 in the first year.
How much is the VED road tax cost UK for standard petrol vehicles?
For most petrol cars with emissions between 76–150g/km, the VED road tax cost UK is £130 in the first year and £190 in subsequent years.
Do electric cars pay tax in 2025?
Under the car tax bands 2025, electric vehicles still benefit from a £0 tax rate, but this will change starting in 2026.
Is there an extra tax for luxury cars?
Yes, cars with a list price over £40,000 pay an additional £410 annual charge for five years, as per the VED road tax cost UK structure.
How do I check my car’s tax band?
You can use the DVLA website or your vehicle’s logbook to confirm where you fall in the car tax bands 2025 system.
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