Car Tax Guide

If you own a vehicle, you must pay tax on it. Follow this guide to find out more about car tax.

What is Car Tax?

Car Tax must be paid on all vehicles which are registered in the UK that are driven/kept on a public road. A vehicle which is kept off road must also be taxed or have a Statutory Off Road Notification (SORN).

There are different bands of car tax and what you pay depends on how environmentally friendly your car is.

How much is my car tax?

The rate of tax that you pay depends on the car’s emissions and the type of fuel that it uses. Costs can vary from nothing for a zero emissions electric car to £1000 for a Bentley. Based on the grams of carbon dioxide that a car emits per kilometre driven, the tax is separated into bands and given a rate as follows.

Band CO2 emission (g/km) Total cost for 12 months
A Up to 100 £0.00
B 101-110 £20.00
C 111-120 £30.00
D 121-130 £110.00
E 131-140 £130.00
F 141-150 £145.00
G 151-165 £180.00
H 166-175 £205.00
I 176-185 £225.00
J 186-200 £265.00
K* 201-225 £290.00
L 226-255 £490.00
M Over 255 £505.00

You can break up the payments to make them more affordable, but there is usually an extra charge for doing this.

After April 2017

In 2017, the rules around car tax will change. There will be a flat standard rate of £140 for all cars except those which emit zero emissions. Cars with a list price of over £40,000 will have to pay £310 a year for the first five years in which the standard rate is paid.

Tax disc

As of 2014, the tax disc is no longer necessary to display in your car. Instead, you can tax your vehicle online and the police and DVLA have an online register.

How to tax your car

You can tax your car using your reminder letter. If you don’t have this, you can use:

  • A v5C registration certificate, also known as a log book.
  • Your new keeper supplement if you have just bought the vehicle.
  • Your ‘last chance’ warning letter.

You can also pay your car tax:

  • By phone.
  • At the Post Office.

 Make a SORN

If you don’t keep or use your vehicle on a public road, for example if it is kept in a garage or on a driveway, you can make a SORN. This will be valid until your vehicle is scrapped or taxed. You can only drive a SORN vehicle on a public road if you are taking it for an MOT test, vehicle identity check or emissions test.

Car Tax Refund

You will automatically get a vehicle tax refund by cheque for any full months remaining when you tell the DVLA that your car, motorbike, lorry, bus or other vehicle has been:

  • Transferred or sold
  • Scrapped at an automated treatment facility
  • Exported
  • Taken off the road and you have made a SORN
  • Given an exempt duty tax class

If your vehicle is stolen, you will need to apply for a refund to the DVLA.