Car tax increases 2024: Rates and how much drivers will be paying revealed

4 January 2024, 12:32

The Government have announced an increase in car tax which will begin later this year.

Owners of older vehicles will face a fresh tax hike in spring, meaning some drivers could be paying over £100 more to use the roads.

Vehicle Excise Duty (VED) rates will increase on 1st of April this year, with the finance experts at Pete Barden predicting that those whom this rule applies to may see an increase of just under six percent.

How much drivers will pay in tax will depend on how 'green' their vehicle is, with high-polluting models facing a higher level of tax.

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VED is based on how old a car is, the type of fuel it uses, CO2 emissions and list price, to determine how much tax the owner will need to pay.

The Treasury explained: "The Government will uprate VED rates for cars, vans and motorcycles in line with RPI from April 1, 2024 in the Autumn Finance Bill 2023.

"To support the haulage sector, VED for HGVs and the HGV levy will both remain at 2023-24 rates for 2024-25."

Electric vehicles are not required to pay VED, however this is set to change in April 2025. Owners of electric cars will be charged £10 a year, however from the second year of registration, they will be charged £165 a year.

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VED bands and rates for cars first registered on or after 1st March, 2001 (rates for 2024/25)

A - Up to 100g of CO2/km - £0

B - 101 to 110 - £20

C - 111 to 120 - £35

D - 121 to 130 - £160

E - 131 to 140 - £190

F - 141 to 150 - £210

G - 151 to 165 - £255

H - 166 to 175 - £305

I - 176 to 185 - £335

J - 186 to 200 - £385

K - 201 to 225 - £415

L - 226 to 255 - £710

M - Over 255 - £735

VED bands and rates for cars first registered on or after 1st April 2017 (rates for 2024/25)

0g of CO2/km - £0

1 to 50 - £10

51 to 75 - £30

76 to 90 - £135

91 to 100 - £175

101 to 110 - £195

111 to 130 - £220

131 to 150 - £270

151 to 170 - £680

171 to 190 - £1,095

191 to 225 - £1,650

226 to 255 - £2,340

Over 255 - £2,745

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