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Is road tax different if you buy a new or used car?

By Motor Match • 13/03/2024

If you're looking to change your car, you may be wondering how road tax is calculated dependant on the age of the car and whether it is new or used.

Does Road Tax Change if you buy a New or Used Car?

Road Tax, or VED (Vehicle Excise Duty) is the Tax system we pay to drive petrol, diesel, hybrid or electric cars in the UK. Road Tax is calculated dependant on the age of the car, when it was registered and the CO2 emissions it permits.

There are currently two main tax systems in place, these are for vehicles registered between 1st March 2001 and 31st March 2017 and cars registered after 1st April 2017.

There is also a different charge when a vehicle is first registered. This blog will discuss how road tax prices change dependent on the age of a car and the differences between a new and a used car for road tax purposes.

Road Tax Charges on New Cars

When a brand-new car is first registered, it will need to be taxed so that it is able to drive on the UK roads. This first payment is different to future annual payments, covers the vehicle for 12 months and is dependent on the cars CO2 emissions.

Whilst this charge can be quite expensive, lots of manufacturers include the change in the vehicles price so that it doesn’t appear as an additional expense.

Here are the current first tax payments for registering a new car:

new car

Here are the current first tax payments for registering a new car:

CO2 emissions

Diesel cars (TC49) that meet the RDE2 standard and petrol cars (TC48)

All other diesel cars (TC49)

Alternative fuel cars (TC59)

0g/km

£0

£0

£0

1 to 50g/km

£10

£30

£0

51 to 75g/km

£30

£130

£20

76 to 90g/km

£130

£165

£120

91 to 100g/km

£165

£185

£155

101 to 110g/km

£185

£210

"£175

111 to 130g/km

£210

£255

£200

131 to 150g/km

£255

£645

£245

151 to 170g/km

£645

£1,040

£635

171 to 190g/km

£1,040

£1,565

£1,030

191 to 225g/km

£1,565

£2,220

£1,555

226 to 255g/km

£2,220

£2,605

£2,210

Over 255g/km

£2,605

£2,605

£2,595

Rates for second tax payment onwards

New cars registered after 1st April 2017 will also need to pay a different recurring payment every 12 months. The rates are:

Fuel type

Single 12 month payment

Single 12 month payment by Direct Debit

Total of 12 monthly payments by Direct Debit

Single 6 month payment

Single 6 month payment by Direct Debit

Petrol or diesel

£180

£180

£189

£189

£94.50

Electric

£0

N/A

N/A

£0

N/A

Alternative

£170

£170

£178.50

£93.50

£89.25

Alternative fuel vehicles include hybrids, bioethanol and liquid petroleum gas.

Vehicles with a List Price of £40,000

If the car you are purchasing cost over £40,000 when it was registered, then you will need to pay an extra £390 a year (£410 per year after 1st April 2024).

Road Tax Charges on Used Cars

There are two different pricing structures to follow when working out the road tax price for a used car. The first is cars registered after 1st April 2017. This will be the same pricing whether you purchased a car of this age from brand-new or whether it was purchased from a used car dealership like Motor Match.

The other pricing structure is for cars registered between 1st March 2001 and 31st March 2017. This system is based on fuel type and CO2 emissions.

CO2 emission details can be found on a cars V5C or can be researched online prior to purchase.

Motor Match Bolton

Road Tax Rates for Cars registered between 1st March 2001 and 31st March 2017

Petrol car (TC48) and diesel car (TC49)

Band and CO2 emission

Single 12 month payment

Single 12 month payment by Direct Debit

Total of 12 monthly instalments by Direct Debit

Single 6 month payment

Single 6 month payment by Direct Debit

A: Up to 100g/km

£0

£0

N/A

N/A

N/A

B: 101 to 110g/km

£20

£20

£21

N/A

N/A

C: 111 to 120g/km

£35

£35

£36.75

N/A

N/A

D: 121 to 130g/km

£150

£150

£157.50

£82.50

£78.75

E: 131 to 140g/km

£180

£180

£189

£99

£94.50

F: 141 to 150g/km

£200

£200

£210

£110

£105

G: 151 to 165g/km

£240

£240

£252

£132

£126

H: 166 to 175g/km

£290

£290

£304.50

£159.50

£152.25

I: 176 to 185g/km

£320

£320

£336

£176

£168

J: 186 to 200g/km

£365

£365

£383.25

£200.75

£191.63

K*: 201 to 225g/km

£395

£395

£414.75

£217.25

£207.38

L: 226 to 255g/km

£675

£675

£708.75

£371.25

£354.38

M: Over 255g/km

£695

£695

£729.75

£382.25

£364.88

*Includes cars with a CO2 figure over 225g/km but were registered before 23 March 2006.

Alternative fuel car (TC59)

Band and CO2 emission

Single 12 month payment

Single 12 month payment by Direct Debit

Total of 12 monthly instalments by Direct Debit

Single 6 month payment

Single 6 month payment by Direct Debit

A: Up to 100g/km

£0

N/A

N/A

N/A

N/A

B: 101 to 110g/km

£10

£10

£10.50

N/A

N/A

C: 111 to 120g/km

£25

£25

£26.25

N/A

N/A

D: 121 to 130g/km

£140

£140

£147

£77

£73.50

E: 131 to 140g/km

£170

£170

£178.50

£178.50

£178.50

F: 141 to 150g/km

£190

£190

£199.50

£104.50

£104.50

G: 151 to 165g/km

£230

£230

£241.50

£126.50

£120.75

H: 166 to 175g/km

£280

£280

£294

£154

£147

I: 176 to 185g/km

£310

£310

£325.50

£170.50

£162.75

J: 186 to 200g/km

£355

£355

£372.75

£195.25

£186.38

K*: 201 to 225g/km

£385

£385

£404.25

£211.75

£202.13

L: 226 to 255g/km

£665

£665

£698.25

£365.75

£349.13

M: Over 255g/km

£685

£685

£719.25

£376.75

£359.63

*Includes cars with a CO2 figure over 225g/km but were registered before 23 March 2006.

To summarize, road tax rates are dependant on when the car was registered and the CO2 emissions the engine produces. Road tax can vary from £0 to £695 per year. It is important to research to annual road tax price before purchasing your next new or used car to avoid any expensive surprises!

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