Car tax bands 2022/23

car tax bands 2022/23

Car tax - formally known as Vehicle Excise Duty (VED) - is based on 13 bands, each defined by a range of tailpipe CO2 emissions as measured on the official test, and the car's list price. The current system came into force in 2018, and has seen pricing updated from 01 April 2022.

For cars registered between March 2001 and March 2017, VED continues to be calculated from the 13 previous car tax bands (A to M), each defined by a range of official tailpipe CO2 emissions. Car tax for vehicles registered before March 2001 is determined by engine capacity. For vans registered from March 2001, van tax is flat rated, with the exception of vehicles considered to be low emission (having a high Euro Standard) at the time of registration.

VED tax 2022/23 – Cars reg from April 2017

For cars registered from 01 April 2017, VED for the first 12 months is covered by a First Year Rate (FYR) which is directly linked to a car's CO2 emissions. New diesel cars registered from 01 April 2018 not meeting the real driving emissions step 2 (RDE2) standard for air quality (NOx) also have to pay a FYR supplement to the effect that these cars go up by one VED band.

Zero-emission cars are zero-rated for FYR, with ultra low emission vehicles (ULEVs) charged £10-25 depending on emissions. In practice, because all ULEVs are currently Alternatively Fuelled Vehicles (AFVs) - which include conventional and plug-in hybrids, biofuels, CNG and LPG - ULEVs receive the 10 AFV discount on the FYR and Standard Rate.

12-month Vehicle Excise Duty rates for new cars registered from 01 April 2017
CO2 emissions
First year rate
Inc. RDE2 diesel
First year rate
Non-RDE2 diesel*
Standard rate**
Premium rate***
0 g/km £0 £0 £0 £0
1-50 g/km £10 £25 £165 £520
51-75 g/km £25 £120 £165 £520
76-90 g/km £120 £150 £165 £520
91-100 g/km £150 £170 £165 £520
101-110 g/km £170 £190 £165 £520
111-130 g/km £190 £230 £165 £520
131-150 g/km £230 £585 £165 £520
151-170 g/km £585 £945 £165 £520
171-190 g/km £945 £1420 £165 £520
191-225 g/km £1420 £2015 £165 £520
226-255 g/km £2015 £2365 £165 £520
Over 255 g/km £2365 £2365 £165 £520

* Rate applies to diesel vehicles registered from 01 April 2018 that do not meet the RDE2 standard.
** Standard rate applies from year two onwards to cars with a list price up to but not including £40,000.
*** Premium rate applies from year two to year six to cars with a list price of £40,000 or more except zero-emission models.
Source: October Budget 2021.

After year one, cars are categorised as: Zero-Emission, Standard, or Premium. Other than Zero-Emission cars which are exempt from VED, a Standard Rate (SR) applies to those with a list price of less than £40,000, which are charged a 12-month rate of £165 irrespective of their emissions, unless they qualify for the Alternative Fuel Discount in which case they pay £155.

The Premium Rate (PR) applies to cars (including ULEVs) with a list price of £40,000 or more. The only exemption are zero-emission models, which pay nothing in VED, as announced in the March 2020 Budget. The Premium Rate, which applies from the second year for five years, consists of the Standard Rate (with or without Alternative Fuel Discount) plus an additional £335, the rate reverting to the Standard Rate after five years.

Note that the list price is the retail price published by the manufacturer before the vehicle is passed to the dealer for registration. This includes the price of any non-standard options, VAT, delivery charges to the dealership, and pre-delivery inspection charges. It is not the same as the OTR price, which includes VED and the first year registration fee.

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VED tax 2022/23 – Cars reg March 2001 to March 2017

For cars registered from 01 March 2001 to 31 March 2017, car tax bands are labelled by a letter, with tax band A referring to cars with CO2 emissions up to and including 100 g/km. Tax bands B to L relate to vehicle CO2 emissions of between 101 and 255 g/km, each band having a range 10-15 g/km. The highest tax band is band M for cars with CO2 emission more than 255 g/km.

12-month VED rates for cars registered from 01 March 2001 to 31 March 2017*
VED Band Vehicle
CO2 emissions
Standard rate
AFV rate**
A Up to 100 g/km £0 £0
B 101-110 g/km £20 £10
C 111-120 g/km £30 £20
D 121-130 g/km £135 £125
E 131-140 g/km £165 £155
F 141-150 g/km £180 £170
G 151-165 g/km £220 £210
H 166-175 g/km £265 £255
I 176-185 g/km £290 £280
J 186-200 g/km £330 £320
K* 201-225 g/km £360 £350
L 226-255 g/km £615 £605
M Over 255 g/km £630 £620

* Includes cars emitting over 225 g/km CO2 registered between 01 March 2001 and 23 March 2006.
** Alternative fuel vehicles (hybrids, bi-ethanol, CNG and LPG) receive a £10 reduction.
Source: Budget 2022.

As an incentive to buy cars with low CO2 levels, the Standard Rate increases with emissions. VED rates range from zero for cars up to 100 g/km CO2, to £630 for those emitting more than 255 g/km CO2. Alternatively fuelled cars such as conventional and plug-in hybrids, biofuels, CNG and LPG cars are eligible for the £10 discount.

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VED tax 2022/23 – Vans reg from March 2001

Unlike current car tax from 2001, van tax is not linked to CO2. For the majority of conventionally fuelled vans it is simply a flat rate of £290 per year (12-months rate) with the exception of vehicles considered to be 'low emission' at the time of registration.

Low emission vans pay a reduced rate of £140 per year. Historically these include vans meeting at least a Euro 4 Standard registered between 01 March 2003 and 31 December 2006 (inclusive), and those meeting at least a Euro 5 Standard registered between 01 January 2009 and 31 December 2010 (inclusive). As with other vehicle classes, zero-emission electric vans are exempt from paying Vehicle Excise Duty.

It is worth noting that, for some vehicle classes such as MPVs and in-cab pickups, there can be confusion as to whether a vehicle is a car or van for tax purposes. In most cases this can be resolved by referring to the vehicle's V5 log book which includes a European classification: N1 or N2 denotes a van and the vehicle will be taxed as such (cars are denoted M1; minibuses M2).

In general, a vehicle is classed as a van (or 'light goods vehicle') if it does not exceed 3,500 kg GVW and has one or more of the following: more than 8 seats; a double cab; no windows on the rear side panels; a gross laden weight of over 1,000 kg, or is a pick-up designed for load carrying.

12-month VED rates for vans (Light Goods Vehicles) from 01 March 2001*
Fuel type Registration date Euro
Tax rate
Electric From 01 Mar 2001 N/A £0
Diesel, Petrol, LPG From 01 Mar 2001 All except below £290
Diesel, Petrol, LPG 01 Jan 2009 to 31 Dec 2010 Euro 5 £140
Diesel, Petrol, LPG 01 Mar 2003 to 31 Dec 2006 Euro 4 £140

* Not exceeding 3,500 kg GVW (Gross Vehicle Weight). Source: Budget 2022.

For vans registered before March 2001 CO2 emission data is generally not available. As a result, van tax is charged according to the older private/light goods tax class under which a vehicle is taxed according to engine size as measured in cubic centimeters or 'cc'.

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VED tax 2022/23 – Cars and vans reg before March 2001

For cars and light-duty vans registered before March 2001, car tax is calculated according to engine size, since CO2 emission data is generally not available.

12-month VED rates for cars (private/light goods) registered before March 2001
VED Band Engine capacity (cc) All car types
N/A Over 1549 cc £295
N/A Up to 1549 cc £180

Source: Budget 2022.

Olly Goodall

Author:Olly Goodall
Date Updated:31st Mar 2021

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