Ownership
Car tax (VED) bands explained: how much will a used car cost?
Car tax bands explained: how UK vehicle tax (VED) is worked out by registration date, what the expensive car supplement is, and who pays when you buy.
How much car tax a used car costs depends on when it was first registered. Older cars are taxed on engine size or CO2 emissions. Cars registered from April 2017 pay one flat standard rate each year, and some pay an extra supplement as well. Tax does not pass to you when you buy, so you must pay it yourself before you drive the car.
Car tax is officially called Vehicle Excise Duty (VED). Rates change, usually in April. This guide explains the system. For exact figures, check the GOV.UK vehicle tax rates page.
How are car tax bands worked out?
The DVLA uses the car's first registration date, not the year of the plate you like the look of. There are three systems.
| First registered | How tax is worked out |
|---|---|
| Before March 2001 | Engine size (cc). Two rates: a lower one for smaller engines, a higher one for larger engines |
| March 2001 to March 2017 | CO2 emissions in g/km, placed in bands from A (lowest) upwards |
| From April 2017 | Flat standard rate every year after the first year |
The first registration date is on the V5C logbook and in the free GOV.UK vehicle check. Our V5C logbook guide shows where to find it.
How much is car tax on a used car?
It depends on the system above.
Cars from April 2017 onwards. The first year rate is based on CO2, but you will rarely pay it on a used car because the first tax payment is made by the first owner or dealer. After that, every car pays the same standard rate. For petrol, diesel and electric cars the standard rate is £200 a year for 2026/27 (£210 in total if paid by monthly Direct Debit). Rates change each April, so check GOV.UK for the figure that applies when you buy.
Cars from March 2001 to March 2017. Tax depends on the CO2 band. In 2026/27 the 12-month rate runs from £20 (up to 110g/km) to £790 (over 255g/km). The band is shown in the DVLA check, and you can see the exact cost when you start the tax process.
Cars before March 2001. Tax is one of two flat amounts, split at 1,549cc engine size. In 2026/27 the 12-month rate is £230 for engines up to 1,549cc and £375 for larger engines. Vehicles made before 1 January 1986 can be exempt (the "historic vehicle" rules), but you must still tax them, at no cost, with the DVLA.
You can also pay by monthly Direct Debit or by six-month instalments. Both cost a little more overall than paying for 12 months at once.
What is the expensive car supplement?
The expensive car supplement is an extra yearly charge on top of the standard rate. It applies to cars first registered from April 2017 with a list price over £40,000. In 2026/27 it is £440 a year, so a 12-month payment is £640. It is paid for five years, in years 2 to 6 of the car's life. After that, the car drops back to the standard rate.
Key points:
- The test uses the car's original list price when new, including optional extras fitted at the factory, not what you pay now.
- Once a car has paid the supplement for five years (from its second tax payment), it drops back to the standard rate.
- Electric cars pay VED from 1 April 2025. For zero-emission cars first registered from 1 April 2025, the supplement threshold is £50,000. Zero-emission cars registered before 1 April 2025 do not pay the supplement.
- The supplement is a fixed amount, set each year. Check GOV.UK for the current figure.
So a used car in its second to sixth year can cost noticeably more to tax than its engine size suggests. Ask the seller how much tax the car costs, or look at the tax cost when you go to tax it. Do this before you agree a price.
What about electric and hybrid cars?
Until March 2025, most electric cars paid nothing. That changed on 1 April 2025. From 2026/27 the rates are:
- Registered from 1 April 2025: £10 for the first year, then the £200 standard rate, plus the supplement if the list price was over £50,000.
- Registered April 2017 to March 2025: the £200 standard rate, with no supplement.
- Registered March 2001 to March 2017: £20 a year.
Hybrids and other alternative fuel cars are taxed like petrol or diesel cars. The old alternative fuel discount has ended. Our petrol, diesel and hybrid guide compares running costs, and the used electric car guide covers EV ownership.
Does car tax transfer when you buy a car?
No. Since October 2014, tax does not transfer to the new keeper. When the seller tells the DVLA the car has been sold, the tax ends. The seller gets an automatic refund for each full month left.
As the buyer, you must:
- Get the green "new keeper" slip (V5C/2) from the seller.
- Tax the car online or by phone before you drive it.
- Have your insurance in place first. You usually need it to tax the car.
- Check the car has a valid MOT. A car over three years old cannot be taxed without one.
Never assume the tax will "run on" until it expires. The car may show as untaxed from the moment of sale. See how to check if a car is taxed for the free check.
If you are selling, tell the DVLA straight away so you get your refund. The private selling guide covers the full process.
How to find out the tax cost before you buy
- Enter the registration on the GOV.UK vehicle check to see the fuel type, engine size, CO2 details and first registration date.
- Work out which system applies from the registration date.
- If the car was registered from April 2017, ask about the original list price. If it was over the threshold and is aged between two and six years, add the supplement.
- Look up the current rate on the GOV.UK rates page.
- Add the yearly figure to your budget for insurance, servicing and fuel.
On Motofly, listings show live DVLA tax status and full MOT history, so you can see if a car is taxed and its details before you visit. Browse current listings to compare cars.
Common mistakes
- Buying on the seller's tax. Their tax is cancelled when they sell.
- Ignoring the supplement. A near-new premium car can cost far more to tax than the standard rate.
- Assuming electric means free. This changed in April 2025.
- Forgetting the MOT. No MOT, no tax on a car over three years old.
- Not declaring SORN. If the car is off the road, you must declare it. Otherwise you may still owe tax.
Frequently asked questions
How much is car tax on a used car?
It depends on the car's first registration date. Cars registered from April 2017 pay a flat standard rate, which is £200 for 2026/27. Older cars pay by CO2 band or engine size. Check GOV.UK for the current rate.
What is the expensive car supplement?
It is an extra yearly charge for cars first registered from April 2017 with a list price over £40,000 (£50,000 for zero-emission cars registered from April 2025). The supplement is £440 a year in 2026/27. It applies for five years, in years 2 to 6. After that, the car pays only the standard rate.
Does car tax transfer when you buy a car?
No. The seller's tax ends when they tell the DVLA about the sale, and they get a refund for full months left. You must tax the car in your own name before you drive it.
Do electric cars pay car tax?
Yes, from 1 April 2025. Most pay the £200 standard rate, or £10 in the first year for cars registered from April 2025. The £50,000 supplement threshold applies to those registered from April 2025. Electric cars registered between March 2001 and March 2017 pay £20 a year.
Can I pay car tax monthly?
Yes. You can pay by Direct Debit monthly or in two six-month instalments. You pay slightly more in total than with a single 12-month payment.