How is UK road tax (VED) calculated?

UK VED from April 2025 (new registrations): EV flat rate £195/year. First year rate for ICE based on CO2: 0-50g: £10. 51-75g: £30. 76-90g: £135. 91-100g: £175. 101-110g: £195. >255g/km: £2,745 first year. Standard rate from year 2: £195/year for most vehicles. Luxury supplement for vehicles >45,000 MSRP: +£620/year years 2-6.

Are EVs exempt from UK road tax?

EVs registered before April 2025 were exempt. From April 2025, all EVs pay the standard rate (£195/year). This ended EV VED exemption as part of UK revenue-neutral VED restructuring. EVs costing over £40,000 also pay the luxury car supplement.

How does CO2 affect car buying decisions in the UK?

High-CO2 vehicles face: high first-year VED, London ULEZ charges (£12.50/day for non-compliant vehicles), and company car BIK tax at higher rates. Low-CO2 hybrid/PHEV vehicles have historically been popular among UK company car drivers for tax efficiency.

Road Tax by CO2 Emissions Calculator (UK)

Formula Definitions

The Road Tax by CO2 Emissions Calculator (UK) works by applying a well-defined formula to the values you enter. Understanding the formula behind the calculation helps you interpret the result and check that your inputs are correct. Below we break down the key components that drive the UK Road Tax CO2.

The core formula used by this calculator is:

Result = f(inputs, settings)

Each variable in the formula has a specific meaning:

inputs — Values entered into the UK Road Tax CO2.
settings — Options, units, or parameters that adjust how the calculation is performed.
Result — Computed output for the chosen inputs and settings.

How to Use This Calculator

Enter the required values. Enter the required values into the Road Tax by CO2 Emissions Calculator (UK) input fields.

Adjust settings. Adjust any settings, select applicable options, or choose units as needed.

Calculate the result. Press Calculate to compute the result using the underlying formula.

Interpret the output. Review and interpret your result using the provided context, reference ranges, or explanatory notes.

Glossary and Definitions

Input

A value entered into the calculator to be processed.

Output

The computed result returned by the calculator for the given inputs.

Setting

An option that adjusts how the calculation is performed, such as unit selection or mode.

UK road tax calculator