Road Tax Explained: What You’ll Pay in 2025

Road tax isn’t random — and it’s not just another government charge. Whether you drive a 1.0L hatchback or a £60,000 SUV, how much you pay (or don’t) depends on a system designed to reward efficiency, reduce pollution, and keep roads funded.

Here’s how road tax actually works — and why it could be costing you more (or less) than you think.

Check if your vehicle is taxed, when it expires, and how much you'll pay.

💡 What Is Road Tax — and Why Do We Pay It?

Road tax — officially known as Vehicle Excise Duty (VED) — is a tax you pay to legally drive or keep a vehicle on UK roads.

The money helps fund:

• Maintenance of public roads

• Road safety and signage

• Transport infrastructure

• Environmental policy enforcement

Even if you don’t drive often, if your car isn’t registered as off the road (SORN), you’re legally required to pay it.

🧮 How Road Tax Is Calculated

🚘 1. For Cars Registered Before March 2001

You’re taxed based on engine size:

• Under 1549cc → lower flat rate

• Over 1549cc → higher flat rate (around £325)

🌍 2. For Cars Registered Between March 2001 and April 2017

You’re taxed based on CO₂ emissions:

• Lower CO₂ = lower tax (as low as £0–£30/year)

• Higher CO₂ = higher tax (up to £600+/year)

💷 3. For Cars Registered After April 2017

It’s a mix of:

• First year tax (based on CO₂ emissions) — can range from £10 to £2,365

• Standard annual rate after that — usually £180–£195

• +£425 supplement if your car cost over £40,000 (for 5 years)

⚡️ What About Electric Vehicles?

Until April 2025, electric vehicles were tax-exempt.

But from April 2025, EV drivers will pay:

• Standard flat rate of £195/year

• Plus the £425 supplement if the car cost over £40,000

The shift reflects government plans to balance tax income as more drivers go electric.

🏆 Why Banding Exists — And Why It Matters

Banding helps:

• Encourage low-emission, efficient car use

• Discourage excessive pollution

• Ensure those with pricier vehicles contribute more

So, someone driving a £1,500 petrol car from 2002 might be paying more tax than a 2020 hybrid — even if it seems less “luxury.”

Resolvo’s free tax checker instantly reveals your band and tax cost — helping you avoid nasty surprises.

Common Questions

• Why is my tax different from someone else’s? It depends on when your vehicle was registered, its emissions, engine size, and list price.

• Can I reduce my road tax? Only by switching to a more efficient or lower-band vehicle. Tax bands are set per car, not driver.

• Do older cars pay more tax? In many cases, yes — especially if they’re over 1549cc or high in CO₂ emissions.

• Are there vehicles that pay no tax? Yes — like historic vehicles (40+ years old), disability-exempt cars, and certain agricultural or specialised vehicles.

• Is it worth checking before buying? Absolutely. That £7,000 used car might come with a £600/year road tax bill. Resolvo shows your tax band instantly, so you can plan ahead.

🔍 Final Thoughts

Road Tax Resolvo

Road tax isn’t just red tape — it’s a system designed to reward cleaner cars, raise funds for public roads, and create fairness in who pays what.

Before you buy, sell, drive, or renew, check your tax band with Resolvo’s free road tax checker. It could save you money, avoid fines, and help you make smarter choices down the road.

Check if your vehicle is taxed, when it expires, and how much you'll pay.