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What is Road Tax?

The official name is Vehicle Excise Duty (VED), but you most commonly know it as road tax or car tax.

First introduced in 1888, road tax is the levy placed on all vehicles who use public roads in the UK, and must be paid by drivers every year.

How Much is My Road Tax?

There are multiple bands for road tax based on emissions, year, and vehicle type. It can be complicated to get your head around, which is probably why you�ve found yourself on our guide. You can keep up to date with the latest road tax bands, or find out using our calculator.

What About Road Tax For Electric Cars?

Electric vehicle owners long enjoyed a 0% road tax rate as a perk of going green, but updates to the law on 1st April 2025 saw EVs brought onto the same rate as their ICE counterparts.

Road tax for electric cars is no longer free, but there are still a lot of benefits of electric cars for those exploring their options.

Changes in Road Tax

Road tax has often fluctuated like many other taxes. The changes to EV road tax in April 2025 mark the most significant updates in a while, with EV drivers required to pay the tax for the first time ever. Whilst the cost usually rises in line with inflation, your road tax pays for numerous government projects across the UK.

Road Tax For Motability Users

Drivers using the Motability scheme can have their car taxed for the first year, but will be responsible for its renewal each year after.

Some drivers with disabilities can claim a partial or full reduction in their car tax if they meet certain criteria. You can read more about how to claim your road tax exemption if you have a disability here.

Cars With the Cheapest Road Tax

Audi Q4 eTron

Audi Q4 eTron

Hyundai e:Ny1

Honda e:Ny1

Audi e-Tron

Toyota Bz4X

MG ZS EV

Jaguar I-PACE

Peugeot e-2008

MINI Electric

Adventure bikes

Volkswagen ID3

*Prices accurate at the time of posting 1stApril 2025. Always check the cost of tax before purchasing your vehicle.

Road Tax FAQ

What is road tax?

Road tax, also known as Vehicle Excise Duty (VED), is a mandatory tax imposed by the government on most vehicles used on public roads. The amount varies based on vehicle type.

How is road tax calculated?

Road tax rates depend on factors such as engine size (for older vehicles), CO2 emissions (for newer vehicles), and fuel type. Electric vehicles are usually exempt from road tax.

Do electric cars need to pay road tax?

As of April 2025, electric cars must pay the same rate of road tax as other vehicles (£195 per year).

When do I need to pay road tax?

Road tax must be paid annually, every six months, or monthly via Direct Debit. It must be renewed before expiry to ensure the vehicle remains legally roadworthy.

How do I pay road tax?

You can pay road tax online via the Gov.uk, at a Post Office, or by setting up a Direct Debit.

What happens if I don�t pay my road tax?

Driving a vehicle without valid road tax can result in fines, penalties, and potential vehicle clamping. The DVLA may also issue an automatic fine if the tax is not renewed.

Can I transfer road tax when selling a car?

No, road tax does not transfer with the car when it is sold. The new owner must tax the vehicle in their name before driving it.

Can I get a refund on my road tax?

Yes, if you sell your car, declare it off the road (Statutory Off Road Notification, or SORN), or it is scrapped, you may be eligible for a refund on any full remaining months of tax.

Is road tax included in my car purchase?

Some dealerships may include road tax in the purchase price, while others require the buyer to arrange it separately. Check with your dealer for details.

Where can I check if my vehicle is taxed?

You can check your vehicle's tax status on the DVLA website using your registration number.