2025 VED car tax: what you'll be paying

Due to ever-tightening emissions regulations and the increasing popularity of electrified vehicles, rules around Vehicle Excise Duty (VED), often misidentified as road tax, are becoming increasingly complex to understand. To help clarify the system and ascertain exactly what you should be paying, we delve into the details.

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Hybrid car tax changes from April 1 2025

Even without the new testing procedures that will significantly increase the stated emissions figures of hybrids from the end of the year, there’s still a small hike coming from April 2025 too. First-year and owner VED for cars that emit between 1-50g/km of CO2 will jump from £10 to £110, while 51-75g/km emitters jump from £30 to £130. For reference, the new hybrid BMW M5 falls into the former category. Likewise other hybrids with similar range and CO2 figures, like the new electrified range of Bentleys and hybrid Porsches. The Lamborghini Urus SE just clips into the slightly higher band.

VED to double for 76g/km+ CO2 cars including hybrids

For cars over 76g/km of CO2 generally, first-year rates will double compared to 2024. That goes also, for smaller battery, lower-range hybrids, like the McLaren Artura, Ferrari 296 GTB, Mercedes-AMG GT 63 S E-Performance and new Lamborghini Temerario, in the 100-200g/km ballpark.

As we covered in the story above, cars emitting over 254g/km – hybrid or not – will lump their first owners with an extra £2745 cost from April 1 2025.

Electric car tax changes from April 1 2025

For 2025, EVs will no longer escape the subject-to-inflation £40,000+ premium car tax, returning after being scrapped in 2020, lumping more expensive EVs with a £355 bill per year cost for its first five years of registration. Drivers of all electric vehicles registered between April 1 2017 and March 3 2025 will from April 2025 also be liable for a £195 standard yearly rate, while older EVs (pre-April 2017) will sit on a £20 standard yearly rate.

EVs registered on or after April 1 2025 will be liable for a first-year rate of £10 before moving on to the £195 yearly rate later on. As most EVs are quite expensive – over £40,000 – cars ranging from high-spec Cupra Borns, to Porsche Taycans, will cost £365 to tax for their first year, then £550 for the following four years, from April 2025. The Alpine A290, not expected to reach over £40,000 in its most expensive spec, should escape the ‘premium’ tax.

VED tax bands: 1 April 2025 onwards

Emissions-dependent rates apply to cars registered between March 2001 and April 2017 and these rise with inflation every year. The only change otherwise for April 1 2025 onwards is as above, the lumping of low and zero emission cars from before April 2017 into the £20 bracket. The figures for 01-17 cars below are accurate as of January 2025.

Older and classic car road tax

For cars older than March 2001, car taxation is fairly simple. As of Janury 2025, if your engine is 1549cc or less, it’s £210. If it’s more than 1549cc, it’s £345. 

Alongside their old school charm, classic cars also provide the benefit of zero road tax. What’s less widely known is the requirement to apply for a road tax exemption, something that can be granted should your car be 40 years old or more. The process can once again be undertaken on the government website, or at a Post Office.

How to pay car tax

VED can now be paid on the government website. Should you have received a DVLA V11 reminder letter through the post, this can be referenced in the process to speed things along. 

Car tax can also be paid at your local Post Office, all you’ll need is your V5C, a valid MoT, proof of insurance and a road tax reminder should you have one. The DVLA also offers a 24 hour phone service that can be accessed 0300 123 4321.