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How much has car tax gone up? Car tax increases as VED rates rise

As millions try to balance the books with their household bills soaring this month, Vehicle Excise Duty (VED), also knowing as road car tax, will rise in price for the majority of drivers. This comes on top of the energy cap going up by 54 per cent, council tax increases, and National Insurance rates rising.

Emissions levels will dictate the level of the bill increase for VED. The tax has gone up alongside the Retail Price Index measure of inflation, however people with lower carbon vehicles will see a smaller increase.

If your car emits no CO2 then your car tax will be zero. Drivers with higher levels of emissions will see the same increase in the standard rate, but will pay a higher first-year rate which increases in increments parallel with emissions, reports the Manchester Evening News.

Read more: Met Office long-range forecast

The regulation means that if your emissions are between 1 and 50g of CO2 per kilometre, your standard rate of car tax will increase from £155 to £165, although the first year rate will be £10.

Here is a breakdown of the new VED rates:

  • For cars that emit between 51 and 75g of CO2 per km, the standard rate will increase from £155 to £165, while your first year rate will stay at £25.
  • If your car emits between 76 and 90g per km, your standard rate will rise from £155 to £165, while your first year rate will increase from £115 to £120.
  • Cars that emit between 76 and 90g per km: standard rate will rise from £155 to £165, while your first year rate will increase from £115 to £120.
  • If your car emits between 91 and 100g of CO2 per km, your standard rate will increase from £155 to £165 and your first year rate will rise from £140 to £150.
  • For cars producing CO2 of between 101 and 110g per km, the standard rate will increase from £155 to £165 and the first year rate will increase from £160 to £170.
  • If your car’s emissions are between 111 and 130g per km, your standard rate will increase from £155 to £165, while your first year rate will rise from £180 to £190.
  • If your car emits between 131 and 150g of CO2, your standard rate will increase from £155 to £165 and your first year rate will rise from £220 to £230.

Which car owners pay zero road tax?

Owners of brand new cars that produce 0 grams of carbon dioxide (CO2) emissions and have a price of less than £40,000 don’t pay any Vehicle Excise Duty. Owners of a car registered between 1 March 2001 and before 1 April 2017 that produces up to 100 grams of CO2 per kilometer driven don’t pay it either.

If you have a disability, you might be entitled to free car tax if you have an invalid carriage, such as a mobility scooter, receive War Pensioners’ Mobility Supplement or receive the Enhanced Mobility Component of Personal Independence Payment.

By the end of this decade, the government will ban the sale of petrol and diesel vehicles, with measures already in place to drive up the switch to electric. In its quest for net-zero, unleaded has moved to E10, a greener, filtered petrol, and drivers are being offered cash to trade in their old ‘dirty’ vehicles, reports the Mirror.

A new giga-factory is also underway to help speed up the production of electric batteries, one of the attractions of buying a new electric car is also the lower tax involved.

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