The latest car tax rates
The latest car tax rates came into force from 1st April 2020. The changes are based around taking the new WLTP (Worldwide Harmonised Light Vehicle Test Procedure) fuel economy tests as the source for CO2-emissions data. These are considered to be more accurate than the NEDC (New European Driving Cycle) tests that were formerly used. In general, this greater accuracy shows increases in CO2 emissions for most cars, possibly by some 20%. That means you may have to pay more than before in the first year of ownership of a new car.
You will pay a different amount in your first year of ownership of your new car. For the second year and onwards, many people will pay a higher rate. The rate you pay is based on the original purchase price of your car and the type of fuel it uses.
If your car was first registered before 1st March 2001, engine size will dictate how much car tax you have to pay. From 1st March 2001, the car tax you pay will be based on CO2 emissions and fuel type.
You need to pay tax when the car is first registered, covering the vehicle for 12 months. The tax rate is based on the vehicle’s CO2 emissions. A higher tax band applies to diesel cars that do not meet the Real Driving Emissions 2 (RDE2) standard for nitrogen oxide emissions.
Currently vehicles with 0g/km CO2 emissions – Electric Vehicles, are exempt from Car Tax. This includes the first 12 months as well as for the second year and onwards.