Car tax
First year car tax rates
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
| CO2 emissions | Petrol and RDE2 diesel | Diesel, not RDE2 | Alternative 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 cover?
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.
How did first year car tax rates change 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.
Who pays the first year rate?
Cars first registered on or after 1 April 2017, at the moment they are first registered. It is a first licence only. From the second licence the same car pays the flat standard rate of £200, plus the expensive car supplement if the original list price was over £40,000 for petrol, diesel and hybrid cars, or over £50,000 for zero emission cars. Cars first registered before 1 April 2017 never see this table: they stay in the lettered CO2 bands or the engine size bands for life.
A zero emission car registered on or after 1 April 2025 pays the lowest first year rate, £10, then the standard rate. Cars registered between 1 April 2017 and 31 March 2025 that were zero emission paid no first year rate at the time and now pay the standard rate with no supplement.
What does a new petrol car at 125 g/km pay in year one?
The 111 to 130 g/km first year band. That is a different split from the older lettered system, where 125 g/km is band D. First year rates only apply to cars registered from 1 April 2017, so a 2015 diesel at 125 g/km is still band D every year and never pays this table.
Example
A new petrol car at 125 g/km, first registered in 2026/27
- First registered
- On or after 2026-04-01
- Fuel
- Petrol
- CO2
- 125 g/km
- Tax year
- 2026/27
- Cars registered from 1 April 2017 pay a first year rate set by CO2.
- 125 g/km falls in the 111 to 130 g/km first year band.
- That band is £455 for petrol and RDE2 diesel in 2026/27.
- From the second licence the car pays the standard rate of £200, plus the supplement if the list price was over the threshold.
Year one costs £455. Year two onwards costs £200 unless the expensive car supplement applies.
What is RDE2, and who pays a band more?
RDE2 is the second step of the Real Driving Emissions test, which measures nitrogen oxide output on the road rather than on a rolling road. A diesel first registered after 1 April 2018 that was not certified to RDE2 pays the first year rate of the band above its own. The top band has no band above it, so that rate repeats. The 0 g/km row cannot describe a diesel.
Example
A 140 g/km diesel that is not certified to RDE2
- First registered
- After 1 April 2018
- Fuel
- Diesel, not RDE2
- CO2
- 140 g/km
- Tax year
- 2026/27
- 140 g/km sits in the 131 to 150 g/km first year band.
- A petrol or RDE2 diesel in that band pays £560.
- A diesel that misses RDE2 pays the band above, which is £1,410.
- The uplift applies to the first licence only. From year two both cars pay the same standard rate.
The first licence is £1,410 rather than £560. The dealer usually includes that figure in the on the road price.
How do 2025/26 and 2026/27 first year rates compare?
Both years are in the published tables. The lowest first year rate stayed £10 for zero emission cars. Other bands moved between 2025/26 and 2026/27. The figures below are the petrol and RDE2 diesel column from each year.
| CO2 emissions | 2025/26 | 2026/27 |
|---|---|---|
| 0 g/km | £10 | £10 |
| 131 to 150 g/km | £540 | £560 |
| 256 g/km and above | £5,490 | £5,690 |
How is the first year rate paid?
On a new car the dealer usually registers it and includes the first year rate in the on the road price. If you are registering it yourself, use the GOV.UK vehicle tax service, phone 0300 123 4321, or a participating Post Office. Direct Debit is not available by phone. Northern Ireland Post Office applications also need the published insurance and test evidence. A disabled tax class vehicle still has to complete the tax process even when the amount due is nil.
- Read the CO2 figure from the certificate of conformity or section V.7 of the V5C once it is issued.
- Match it to the first year table. If it is a diesel first registered after 1 April 2018, check whether it is certified to RDE2.
- Expect the dealer to include the first year rate in the on the road price on a new car. Check the invoice.
- From the second licence, tax it at the standard rate through GOV.UK, by phone, or at a Post Office.
- If the car will stay off a public road after registration, make a SORN rather than taking out the next licence.
- Twelve months up front is the cheapest way to pay the standard rate of £200 from year two.
- Monthly or six monthly Direct Debit adds a 5 per cent surcharge. A single annual Direct Debit payment carries no surcharge.
- Refunds cover full months only. The surcharge and any six month extra are not refunded. Chase a missing cheque after 8 weeks.
What if the first licence is not taken out?
If there is no tax and no SORN, DVLA can issue a late licensing penalty of £80, reduced to £40 if paid within 33 days. Use or keeping on a public road can then lead to an out of court settlement of £30 plus 1.5 times the outstanding tax, or a court penalty of £1,000 or five times the tax, whichever is greater. Company cars are not excused: the registered keeper still owes the first year rate, and benefit in kind does not pay it.
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 of £200 and the CO2 figure stops mattering entirely. A high emitting new car can therefore cost thousands in year one and £200 a year from year two, plus the expensive car supplement if the original list price was over £40,000. Used buyers never pay the first year rate on that car.
- 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. The dealer usually includes the first year rate in the on the road price of a new car, so the original buyer may never have seen it as a separate bill either. Check the invoice on a new car if you want to see the line.
- 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. Petrol, hybrid and LPG cars are never moved up a band. A diesel at 140 g/km that misses RDE2 is charged £1,410 rather than £560. 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. The licence still runs for twelve months from first registration, then the car moves to the standard rate when it is renewed, whether you are still the keeper or not.
- How do I tax the car when the first year ends?
- Use the GOV.UK vehicle tax service with a V11 reminder or the 11 digit reference on a V5C in your name. You can also tax by phone on 0300 123 4321, though Direct Debit is not available on that line, or at a participating Post Office. Northern Ireland Post Office applications also need the published insurance and test evidence. From that second licence the car pays the flat standard rate, plus the expensive car supplement where the list price was above the threshold.
- Do I get a refund if I sell the car during the first year?
- Yes, for any full months left on the first licence. DVLA cancels the tax when the sale is recorded and sends a refund cheque to the name and address on the V5C. You do not get the 5 per cent Direct Debit surcharge back, or the extra you paid for a six month licence, or any card fee. Contact DVLA if the cheque has not arrived after 8 weeks. The buyer cannot use the remaining first year licence: they have to tax the car in their own name before driving it.
- Does a company car pay the first year rate?
- Yes, if it is a new car being registered. Vehicle excise duty is charged on the vehicle. The registered keeper, usually the employer or the leasing company, pays the first year rate at first registration and the standard rate from the second licence. Benefit in kind is a separate income tax charge on the employee and does not replace vehicle tax. A disabled tax class vehicle still has to complete the tax process even when the amount due is nil.
- What if I do not tax a newly registered car?
- If there is no tax and no SORN, DVLA can issue a late licensing penalty of £80, reduced to £40 if paid within 33 days. That penalty is a register offence, so the car does not have to have been seen on a road. Use or keeping on a public road can then lead to an out of court settlement of £30 plus 1.5 times the outstanding tax, or a court penalty of £1,000 or five times the tax, whichever is greater. Make a SORN if the car will stay off the road instead.
Sources
- DVLA, V149: rates of vehicle tax from 1 April 2026 (as of 1 April 2026)
- GOV.UK, Budget 2025 overview of tax legislation and rates, Annex A: rates and allowances (as of 1 April 2026)
- GOV.UK, Vehicle tax rate tables (as of 1 April 2026)
- GOV.UK, Increase in the Vehicle Excise Duty Expensive Car Supplement threshold for zero emission cars (as of 1 April 2026)
- GOV.UK, Vehicle tax for electric, zero and low emission vehicles (as of 1 April 2026)
- GOV.UK, Pay your vehicle tax by Direct Debit (as of 1 April 2026)
- legislation.gov.uk, Finance Act 2025 section 66: rates of vehicle excise duty, omitting the reduced rate for alternative fuel vehicles (as of 1 April 2025)
- GOV.UK, Autumn Budget 2024 overview of tax legislation and rates, Annex A: rates and allowances (as of 1 April 2025)
- GOV.UK, Vehicle Excise Duty rates for cars, vans and motorcycles from 1 April 2025 (as of 1 April 2025)
- GOV.UK, Tax your vehicle (as of 10 September 2026)
- GOV.UK, Cancel your vehicle tax and get a refund (as of 10 September 2026)
- GOV.UK, Register your vehicle as off the road (SORN) (as of 10 September 2026)
- GOV.UK, Vehicles exempt from vehicle tax (as of 10 September 2026)
- DVLA, DVLA enforcement of vehicle tax, registration and insurance offences (as of 15 July 2026)