Millions of motorists are set to be impacted by significant car tax changes in just a few weeks, potentially costing thousands of pounds. From April 2025, the first-year car tax rate – often referred to as the showroom tax – will increase for those purchasing new cars, including electric vehicles (EVs), which will be subject to car tax for the first time from this April.
Currently, EV owners are exempt from car tax. However, from April 2025, if you buy a brand new electric, zero or low emission vehicle, you’ll be required to pay the lowest first year rate of vehicle tax of £10.
From the second tax payment onwards, the standard rate charged to all cars registered after April 2017 will apply. This rate is currently £190 per annum, but will rise to £195 from April 2025.
For those purchasing a car that emits between 1-50g/km of CO2 after April 2025, including hybrid vehicles, the first-year car tax rate will jump from £10 to £110. The rates for new cars emitting 51-75g/km of CO2 will climb from £30 to £130, while all other rates for cars emitting 76g/km of CO2 and above will double from their current level.
For a car that emits over 255g/km of CO2, the first-year car tax rate will double from £2,745 to £5,490, reports the Mirror. A full list of the changes can be found below.
First-year car tax rates from April 2025
- 0g/km – £0 now, rising to £10
- 1-50g/km – £10 now, rising to £110
- 51-75g/km – £30 now, rising to £130
- 76-90g/km – £135 now, rising to £270
- 91-100g/km – £175 now, rising to £350
- 101-110g/km – £195 now, rising to £390
- 111-130g/km – £220 now, rising to £440
- 131-150g/km – £270 now, rising to £540
- 151-170g/km – £680 now, rising to £1,360
- 171-190g/km – £1,095 now, rising to £2,190
- 191-225g/km – £1,650 now, rising to £3,300
- 226-255g/km – £2,340 now, rising to £4,680
- 255+g/km – £2,475 now, rising to £5,490
As previously mentioned, all vehicles registered after April 2017 are currently subject to a standard car tax rate of £190, which will increase to £195 from April 2025. However, different rates apply to cars registered between March 1, 2001 and March 31, 2017.
For electric, zero or low emission cars registered within this period, no car tax is currently due – but this will change to £20 annually from April 2025. For cars emitting between 101-110g/km or 111-120g/km of CO2, the annual car tax charges are £20 and £35 respectively. These rates will remain unchanged from this April.
However, for cars emitting more than these levels, the car tax rate will increase. For instance, if your car emits between 121-130g/km of CO2, the annual car tax rate will rise from £160 to £165, while a vehicle emitting over 255g/km of CO2 will be charged £760 from April, an increase from the current rate of £735.
Car taxes from April for cars registered between 2001 and 2017
- Up to 100g/km – £0 now, rising to £20
- 101-110g/km – £20 (no change)
- 111-120g/km – £35 (no change)
- 121-130g/km – £160, rising to £165
- 131-140g/km – £190, rising to £195
- 141-150g/km – £210, rising to £215
- 151-165g/km – £255, rising to £265
- 166-175g/km – £305, rising to £315
- 176-185g/km – £335, rising to £345
- 186-200g/km – £385, rising to £395
- 201-225g/km – £415, rising to £430
- 226-255g/km – £710, rising to £735
- 255+g/km – £735, rising to £760