Car tax (Vehicle Excise Duty) in the UK can be paid online at GOV.UK, by phone on 0300 123 4321, or at a Post Office. The standard rate for most cars registered after April 2017 is £195 per year as of April 2025. Electric vehicles are no longer exempt and now pay £10 in the first year, then £195 annually.
Car tax, officially called Vehicle Excise Duty (VED), is a legal requirement for driving on UK roads. The rules changed significantly from April 2025, with electric vehicles now paying road tax for the first time and further changes planned for 2026 and 2028. This guide explains exactly how to pay your car tax, what it costs, and what the recent budget changes mean for you.
Before you can pay your car tax, you need to have valid car insurance and, if your car is more than three years old, a valid MOT certificate. Without both of these, you cannot tax your vehicle. You will also need your V5C reference number from your vehicle log book (the 11-digit number in the document reference field), or the 16-digit reference number from your V11 reminder letter if you have received one.
There are several ways to pay your car tax:
The quickest and easiest way to pay is online at GOV.UK. The service is available 24 hours a day, 7 days a week. You can pay by debit card, credit card, or set up a Direct Debit for monthly payments. The website will automatically check that your insurance and MOT are valid before allowing you to complete the transaction.
You can call the DVLA on 0300 123 4321 to pay by phone. The lines are open Monday to Friday from 8am to 7pm, and Saturday from 8am to 2pm. You will need your V5C or V11 reference number and a debit or credit card.
You can tax your car at any Post Office that deals with vehicle tax. You will need to bring your V5C log book or V11 reminder letter, and you can pay by cash, cheque, debit card or credit card. This option is useful if you do not have internet access or prefer to deal with things in person.
The amount you pay depends on when your car was first registered, its CO2 emissions, and its list price when new. The 2024 Autumn Budget introduced significant changes that came into effect in April 2025.
Most cars registered after April 2017 pay a standard rate of £195 per year from the second year onwards, regardless of fuel type. This now includes electric vehicles, which were previously exempt. If your car had a list price over £40,000 when new, you pay an additional £425 per year for five years from the second year of registration, bringing the total to £620 annually during that period.
When you buy a brand new car, the first year rate is based on CO2 emissions. Following the 2024 budget changes, these rates have doubled for most petrol and diesel cars. Electric vehicles pay just £10 in the first year. Cars emitting 1-50g/km of CO2 (including most hybrids) pay £110. The rates increase significantly with emissions, reaching up to £5,490 for the most polluting vehicles emitting over 255g/km of CO2.
Older cars are taxed based on CO2 emission bands. Rates range from £20 for cars emitting up to 100g/km, up to £695 for cars emitting over 255g/km. Zero emission cars in this age bracket now pay £20 per year, having moved from Band A (free) to Band B.
The biggest change from April 2025 is that electric vehicles are no longer exempt from road tax. This decision was originally announced in 2022 and has now taken effect.
The Expensive Car Supplement (sometimes called the luxury car tax) adds £425 per year to vehicles that cost over £40,000 when new. This extra charge applies for five years from the second year of registration.
From April 2026, the threshold for electric vehicles will increase from £40,000 to £50,000. This means EVs with a list price between £40,000 and £50,000 registered from April 2025 onwards will no longer have to pay the supplement. Petrol, diesel and hybrid vehicles remain subject to the £40,000 threshold. This change recognises that electric vehicles typically have higher purchase prices due to battery costs, with over 70% of new EVs currently exceeding the £40,000 threshold.
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The 2025 Autumn Budget confirmed a new pay-per-mile road tax for electric and plug-in hybrid vehicles starting from April 2028. This is officially called eVED (Electric Vehicle Excise Duty) and is being introduced to offset declining fuel duty revenues as more drivers switch to electric.
According to government estimates, the average electric car driver covering 8,000 miles per year would pay approximately £240 annually under this system, in addition to the existing VED. The government has confirmed there will be no requirement to install trackers in vehicles or report where and when miles are driven. Further details on how mileage will be declared are expected in the scheme consultation.
Driving without valid car tax is illegal and can result in an £80 fine, which is reduced to £40 if paid within 28 days. If you continue to drive without taxing your vehicle, you could face prosecution and a fine of up to £1,000.
The DVLA actively identifies untaxed vehicles using automatic number plate recognition cameras. Untaxed vehicles can be clamped, impounded or even destroyed. If your car is clamped, you will need to pay the outstanding tax plus a release fee to get it back.
You can check whether your car tax is up to date on the GOV.UK vehicle enquiry service. Simply enter your registration number to see your current tax status and when it expires. This is also useful when buying a used car, as road tax does not transfer with the vehicle. If you buy a car, you must tax it before driving it away.
If your car is not being used on public roads, you can make a Statutory Off Road Notification (SORN) instead of paying tax. A SORN is free and lasts until you tax the vehicle again or sell it. Your car must be kept off public roads at all times while declared SORN. If you sell a car with a SORN, the new owner must either tax it or make their own SORN before the sale completes.
Even if you are exempt, you still need to register your vehicle as taxed, which you can do online at no cost.
You cannot tax your car without valid insurance. The DVLA system automatically checks the Motor Insurance Database when you attempt to tax your vehicle. If your insurance has lapsed or is not showing as valid, you will not be able to complete the transaction. Make sure your insurance is in place and has been registered on the database before trying to tax your car.
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Compare Car Insurance NowPaying car tax is straightforward once you have valid insurance and, if applicable, an MOT. The quickest method is online at GOV.UK, though you can also pay by phone or at a Post Office. Most drivers with cars registered after 2017 pay the standard rate of £195 per year, with electric vehicle owners now included following the April 2025 changes.
Keep an eye on future changes, particularly the increased expensive car supplement threshold for EVs from April 2026 and the new pay-per-mile charges arriving in April 2028. Setting up an annual reminder to check your tax status helps avoid penalties and keeps you legal on the road.
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