Car tax rules are changing: what are the new vehicle excise duty rates?

The rules around vehicle excise duty changed this April. What are they, and how are they going to affect you?

Person calculating their car tax using a calculator while a toy car is beside them
Electric car owners are among those affected by new vehicle excise duty rules
(Image credit: krisanapong detraphiphat via Getty Images)

Drivers of electric or low-emission vehicles have started to pay Vehicle Excise Duty (VED) this April as measures announced last October have come into effect.

Electric vehicles were previously exempt from having to pay vehicle tax but in the 2024 Autumn Budget, chancellor Rachel Reeves announced all drivers will now have to pay the fee.

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CO2 Emissions Figure (g/km)

Rate (£)

0 - 100

20

100 - 110

20

110 - 120

35

120 - 130

165

130 - 140

195

140 - 150

215

150 - 165

265

165 - 175

315

175 - 185

345

185 - 200

395

200 - 225

430

225 - 255

735

255+

760

Swipe to scroll horizontally

CO2 Emissions Figure (g/km)

Rate (£)

0 - 50

130

50 - 75

270

75 - 90

350

90 - 100

390

100 -110

440

110 - 130

540

130 - 150

1360

150 - 170

2190

170 - 190

3300

190 - 225

4680

225 - 255

5490

255+

5490

Daniel is a digital journalist at Moneyweek and enjoys writing about personal finance, economics, and politics. He previously worked at The Economist in their Audience team.

Daniel studied History at Emmanuel College, Cambridge and specialised in the history of political thought. In his free time, he likes reading, listening to music, and cooking overambitious meals.