SHOP

Price reductions on selected cars, from £250 - £1000 off

skip to main contentskip to footer

How much is road tax in the UK?

Learn how much road tax is in the UK and how those prices are influenced

An image showing a vehicle tax reminder

By Tia Harrison-North

Last updated: 26 March 2025


How much is road tax?

A big question that many of us ask when purchasing a new car is ‘how much is my road tax going to be?’ – the costs of running a car can rack up quickly, so it’s best to research ahead of time.

UK Vehicle Excise Duty (VED – or usually known as road tax) is the fee we pay on a monthly or annual basis to ensure we can legally use our cars on the road.

How much road tax costs depends on the type of car you choose, as it differs with each model.

Electric cars were free to tax until 1 April 2025. Now, electric cars registered between 1 April 2017 and 31 March 2025 cost £195 a year to tax (the standard rate), and new ones cost £10 for the first year of tax and the standard £195 each year after that.

All cars registered between 1 April 2017 and 31 March 2025 have to pay the £195 standard-rate road tax.

First-year road tax rates for new cars and the yearly road tax rates for cars registered between 1 March 2001 and 31 March 2017 are based on emissions.

And don't forget, cars that cost over £40,000 when new are subject to the £425 expensive car supplement (also called the 'luxury car tax') from the second to the sixth years they're on the road. This applies to electric cars registered after 1 April 2025 too.

It’s always best to check each car individually before you buy if road tax prices are a concern.

What does road tax pay for?

Contrary to what most of us might believe, road tax isn’t used purely to pay for the fixing of potholes. All road tax payments end up with the UK Exchequer with other funds like council tax.

This money is then spent across multiple different areas that could be road and vehicle-related, as well as wider projects like the police service and hospitals.

This also includes national infrastructure like new roads and motorways, and local projects such as new car parks and new local roads.

So, while some road tax is used on our roads, it also pays towards many other areas.

A banner reading: 'quality cars for under £200 a month, see what's in stock'

How to check road tax prices

Road tax price is calculated using a few factors, depending on when the vehicle was first registered.

Cars registered between 1 March 2001 and 31 March 2017 are given a tax band based on their CO2 emissions. Essentially, cars with the lowest emissions are the cheapest to tax.

For cars registered after 1 April 2017, the first-year road tax is based on emissions, and then they all need to pay the standard rate of £195.

You can check the cost of road tax by checking the UK Government website and seeing the official figures for each tax band.

There are also websites that can check the price of car tax using your car’s registration or model details.

You’ll also need to be aware that vehicles with a list price of over £40,000 must pay an extra £425 per year for five years, starting from the vehicle’s second tax year.

Audi road tax

Audi Q3 side

The cost of Audi road tax will depend on the model you’re purchasing and its age.

If you’re purchasing an older Audi from before 2017, the cost of road tax is decided using the CO2 emissions of the car. An Audi from after this period will follow the CO2 tax system for the first year it's registered and then pay the standard rate after that.

Plenty of models, like the Audi Q3 and Audi A1, will cost the standard yearly rate to tax.

Flashier trims worth over £40,000 and larger engines see Audi road tax costs increase. This is typical for Vorsprung models – as these get all the bells and whistles, plus bigger engines.

BMW road tax

A dark coloured BMW X3 driving near a cliffside

BMW road tax also varies between models, especially if you choose a car that’s subject to the over £40,000 list price luxury car tax.

You'll now need to pay road tax for electric BMWs like the 330e, including the luxury car tax if it applies.

Plenty of BMWs do cost over the £40,000 mark, especially if you go for top-level trims like the M Sport, and these models often have bigger engines with higher emissions – costing more to tax due to the emissions-based bands for first-year tax.

For cheaper road tax, look for lower-cost models with entry and mid-level trims. The BMW 1 Series or X2 could be good options.

Ford road tax

Facelifted Ford Fiesta ST in green driving on road

There’s plenty of variation with Ford road tax prices, but they do tend to be cheaper to tax due to their lower list price.

Ford Fiesta road tax is often on the cheaper side, usually costing the standard yearly rate or lower – depending on the car's age.

You’ll find that Ford Kuga road tax can also be on the cheap side, sitting at the standard rate even if you pick a higher trim.

Volkswagen road tax

a blue Volkswagen Tiguan driving on a country road in Germany

You’ll find that Volkswagen road tax prices can vary as well, especially if you compare older and newer models.

Volkswagen Tiguan road tax will usually be around the standard rate for an entry to mid-level model, but you will have to pay the extra charge for models that cost over £40,000 brand-new.

Volkswagen Polo road tax for models after 2017 will also cost the standard rate per year, while older models can cost less to tax per year.

Road tax for a Volkswagen Golf will also cost around the standard or models after 2017, but again, you’ll find that older models are usually cheaper.

Mercedes road tax

There are plenty of options when buying a Mercedes, but choosing a flashier trim will mean you could end up paying that extra charge for tax.

Mercedes A-Class road tax for a model from 2017 onwards will typically start at the standard rate annually and can go up from there.

Mercedes GLA road tax for the SUV version of the A-Class isn’t that much different. Prices start at the standard rate for a year for models from 2017 onwards and can go right up if the luxury car tax fee is added.

Electric car road tax

Electric cars were free to tax until 1 April 2025 but will need to pay going forward.

Electric cars registered after April 2025 will have to pay the lowest first-year tax rate of £10 a year (as of April 2025). They’ll have to pay the standard £195 from the second year of registration.

As of April 2025, electric cars will also be subject to the expensive car supplement if they have a list price of over £40,000.

Read more about car running costs: