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Car tax

First year car tax rates

The one off charge a car pays at first registration, set entirely by its CO2 figure. It is the reason two identical looking cars can be thousands of pounds apart in year one and identical from year two.

Checked on 1 April 2026.DVLA, V149: rates of vehicle tax from 1 April 2026 (as of 1 April 2026)

First year rates, 2026/27

Vehicle excise duty first licence rates by CO2 emissions, 2026/27
CO2 emissionsPetrol and RDE2 dieselDiesel, not RDE2Alternative fuel
0 g/km£10£10£10
1 to 50 g/km£115£135£115
51 to 75 g/km£135£280£135
76 to 90 g/km£280£365£280
91 to 100 g/km£365£405£365
101 to 110 g/km£405£455£405
111 to 130 g/km£455£560£455
131 to 150 g/km£560£1,410£560
151 to 170 g/km£1,410£2,270£1,410
171 to 190 g/km£2,270£3,420£2,270
191 to 225 g/km£3,420£4,850£3,420
226 to 255 g/km£4,850£5,690£4,850
256 g/km and above£5,690£5,690£5,690

What does the first year rate actually buy?

Twelve months of vehicle excise duty, starting the day the car is first registered. It is a licence like any other, so it expires on a date rather than after a mileage, and the car moves to the standard rate when it is renewed.

The rate is read off the CO2 figure recorded at type approval, which sits in section V.7 of the V5C. A car that emits 1 g/km more than the top of a band pays the next band up, and the steps between bands are large at the upper end.

Why did first year rates double in April 2025?

Every band from 76 g/km upwards doubled on 1 April 2025. A 150 g/km petrol car went from £270 to £540 and the top band went from £2,745 to £5,490. The two lowest bands rose as well, from £10 to £110 and from £30 to £130.

The change applies to the first licence only, so it did nothing to the annual bill on an existing car. It did, however, add hundreds and in places thousands of pounds to the on the road price of a new one, which is where the whole cost lands.

Common questions

Is the first year rate the same as the standard rate?
No. The first year rate is a one off charge set by the car's CO2 figure and paid at first registration. From the second licence onwards the car moves to the flat standard rate and the CO2 figure stops mattering entirely.
Do I pay the first year rate on a used car?
No. It is charged once, to the first keeper, at first registration. Buying a two year old car means you start at the standard rate, whatever the first year rate on that model was when it was new.
Why do some diesels pay a band more?
A diesel first registered after 1 April 2018 that is not certified to the RDE2 standard pays the first year rate of the band above its own. It applies to the first licence only, and only to diesels. RDE2 certification is on the certificate of conformity.
Is the first year rate included in the price of a new car?
Usually. A dealer normally registers and taxes the car before handover, so the first year rate is inside the on the road price rather than a separate bill. Check the invoice, because it is the single largest line after the car itself on a high emitting model.

Sources

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