New vehicle tax rates
The way vehicle tax is calculated will change for cars and some motor homes that are first registered with DVLA from 1 April 2017.
Here is what you need to know if you’re thinking about buying a new vehicle.
You’re not affected if your vehicle was registered before 1 April 2017 - check your vehicle tax rate to find out how much you’ll need to pay.
The new rates
The amount you pay the first time you tax your vehicle is based on CO2 emissions. Check the vehicle tax rate tables to find out how much you need to pay.
The amount you pay the second time you tax the vehicle depends on the type of vehicle. You’ll pay:
- £140 a year for normal petrol or diesel vehicles
- £130 a year for alternative fuel vehicles (hybrids, bi-ethanol and LPG)
- £0 a year for vehicles with zero CO2 emissions
New vehicles that cost more than £40,000
If you buy a vehicle with a list price (the published price before any discounts) of more than £40,000, you’ll pay a rate based on CO2 emissions the first time it’s taxed.
When you tax it for the second time you’ll pay one of the new rates (depending on the vehicle) and an additional rate of £310 a year for the next 5 years.
After 5 years, your vehicle will then be taxed at one of the new rates again.
Check the list price with your dealer so you know how much vehicle tax you’ll have to pay.
Know your vehicle tax rate
You can check the tax rates for all vehicles if you’re thinking about buying a new or used vehicle.
You can also apply for discount on your vehicle tax if you claim certain benefits.