Car tax rates in the UK change almost every year, and 2025 is no different. Whether you’re budgeting for running costs, buying a new car, or deciding whether to scrap an older vehicle, knowing how much road tax you’ll pay is essential.
In this guide, we’ll explain what VED tax is, the current 2025 rates, and how your vehicle type, emissions, and registration date affect what you pay.
VED stands for Vehicle Excise Duty.
More commonly known as either road tax or vehicle tax, VED is a tax for registered vehicles in the UK and is paid by most vehicle owners.
How much VED tax you will need to pay largely depends on:
Based on both the date your vehicle is first registered and the above factors, you will be put into a VED tax band and charged a certain amount for your vehicle.
Vehicle Registration date : Annual tax rate for 2025
As part of the UK’s climate targets, VED continues to rise, especially for higher-emission vehicles. The government aims to encourage drivers to switch to low or zero-emission vehicles.
The government aims to encourage drivers to switch to low or zero-emission cars ahead of the upcoming 2035 ban on manufacturing new petrol and diesel cars.
This is alongside expanding Clean Air Zones (CAZ) in cities across the UK, adding further costs for drivers of older, higher-emission cars.
Yes, some vehicles are exempt, including:
Always check on GOV.UK to confirm your exemption status.
Yes, road tax rates have increased slightly in 2025 for most petrol and diesel cars, particularly in higher CO2 emission bands, as part of the government’s drive to reduce emissions and encourage cleaner vehicles.
Older cars often face higher tax bands, plus repairs and ULEZ charges. If your VED is rising and your vehicle’s value is falling, scrapping might be a cost-effective choice.
Learn more about how to scrap your car step by step, or get a free, no-obligation scrap car quote today with Scrap Local and see how much your vehicle is worth.
We have hundreds of scrap car buyers waiting to buy your scrap car.
