New 2025 car tax bands for VED drivers in full – how much more you will pay

The new car tax bands have been fully disclosed ahead of a significant overhaul by the incoming Labour Party government. The new tax bands are set to be introduced following Chancellor Rachel Reeves’ Autumn Statement and Budget, which took place in October.

If you own a zero-emissions car, you will pay the lowest first-year rate – also known as the showroom tax – of £10. From the second year onwards, you will pay the standard rate of £195, reports Birmingham Live.

If you purchase a new vehicle from April 2025 that emits between 1-50 g/km of CO2, including hybrid vehicles, the amount you’ll pay in car tax will rise from £10 to £110.

The rates for new cars emitting 51-75g/km of CO2 will increase from £30 to £130, while all other rates for cars emitting 76g/km of CO2 and above will double from their current level. For a car that emits over 255g/km of CO2, the first-year rate will double from £2,745 to £5,490.

First tax payment for petrol and diesel cars on or after April 1, 2017

0g/km – £0

1 to 50g/km – £10

51 to 75g/km – £30

76 to 90g/km – £135

91 to 100g/km – £175

101 to 110g/km – £195

111 to 130g/km – £220

131 to 150g/km – £270

151 to 170g/km – £680

171 to 190g/km – £1,095

191 to 225g/km – £1,650

226 to 255g/km – £2,340

Over 255g/km – £2,745

Cars registered between March 1, 2001, and March 31, 2017

A: Up to 100g/km – £0

B: 101 to 110g/km – £20

C: 111 to 120g/km – £35

D: 121 to 130g/km – £160

E: 131 to 140g/km – £190

F: 141 to 150g/km – £210

G: 151 to 165g/km – £255

H: 166 to 175g/km – £305

I: 176 to 185g/km – £335

J: 186 to 200g/km – £385

K*: 201 to 225g/km – £415

L: 226 to 255g/km – £710

M: Over 255g/km – £735

*Includes cars with a CO2 figure over 225g/km but were registered before March 23, 2006.

Cars and light goods vehicles registered before March 1, 2001

Engine size not under 1,549cc – £210

Engine size over 1,549cc – £345

All petrol and diesel cars manufactured from 2017 onwards pay a flat rate of £190.But if your car was built between 2001 and 2017, then your car tax is based on how many emissions your vehicle produces.

Image Credits and Reference: https://www.examinerlive.co.uk/news/uk-world-news/new-2025-car-tax-bands-30808156

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