Car tax bands: How is car tax calculated in the UK?

Car tax in the UK is determined using a number of different measures. Rates are based on either engine size or fuel type and CO2 emissions, depending on when the vehicle was registered.

How is car tax calculated?

The way car tax – officially called Vehicle Excise Duty (VED) – is calculated has changed this month.

For cars registered on or after March 1, 2001, VED depends on CO2 emissions and fuel type.

For cars registered before that, the rate of vehicle tax depends on its engine size.

ALSO SEE – Vehicle tax rates 2020: How to check if a vehicle is taxed?

However, as of April 1, 2020, what’s changed is the way CO2 emissions are measured.

The testing of vehicle emissions has switched from NEDC (New European Driving Cycle) to WLTP (Worldwide Harmonised Light Vehicle Test Procedure).

The WLTP tests are regarded as more realistic than the NEDC measures.

This means, for most people in the UK, the cost of taxing your car will likely rise.

A full breakdown of vehicle tax rates can be found here.

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Car tax bands

First-year car tax rates from April 2020

(Listed as: CO2 emissions (g/km) – Petrol – Diesel – Alternative fuel)

0 – £0 – £0 – £0

1-50 – £10 – £25 – £0

51-75 – £25 – £110 – £15

76-90 – £110 – £135 – £100

91-100 – £135 – £155 – £125

101-110 – £155 – £175 – £145

111-130 – £175 – £215 – £165

131-150 – £215£540 – £205

151-170 – £540 – £870 – £530

171-190 – £870 – £130 – £860

191-225 – £1305 – £1850 – £1295

266-255 – £1850 – £2175 – £1840

Over 255 – £2175 – £2175 – £2165

Cars registered on or after February 2001 but before 1 April 2017

(CO2 emission (g/km) – Total cost for 12 months)

Up to 100 – £0

101-110 – £20

111-120 – £30

121-130 – £125

131-140 – £145

141-150 – £160

151-165 – £200

166-175 – £235

176-185 – £260

186-200 – £300

201-225 – £325

226-255 – £555

Over 255 – £570

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