There are changes coming to anyone with an electric vehicle (EV) while the showroom tax, which applies when you buy a brand new vehicle, is also going up from April 2025

There are major changes to car tax coming today – and it could end up costing you thousands of pounds more. The first update affects anyone with an electric vehicle (EV) as these will be subject to paying car tax for the first time.

If your EV was registered on or after April 1, 2017, you will will pay the standard rate of car tax, which will be £195 a year from April 2025. If your EV was registered between March 1, 2001 and March 31, 2017, your annual car tax bill will be £20. Owners of EVs currently don’t pay any car tax.

The first-year car tax rate – known as the showroom tax – is also going up for all types of cars. This is the tax you pay for the first year of owning a brand new vehicle – after this, you move to the standard rate of car tax. If you buy a brand new EV after April 2025, the first-year car tax rate will be £10.

If you buy a car that emits between 1-50g/km of CO2 from April 2025, the first-year car tax rate is rising from £10 to £110. The rates for new cars emitting 51-75g/km of CO2 will increase from £30 to £130, while all other rates for cars emitting 76g/km of CO2 and above will double from their current level.

This means for a car that emits more than 255g/km of CO2, the first-year car tax rate will double from £2,745 to £5,490. You can find a full list of the changes and see how much more you’ll pay when purchasing a brand new car below. As we’ve mentioned above, from the second year onward, you pay the standard car tax rate for all vehicles that were registered after April 2017.

This is currently £190 but is rising to £195 from April 2025. There is a different car tax system in place for cars that were registered between March 1, 2001 and March 31, 2017. If you have an EV or low emission car that was registered between these dates, you currently pay no car tax – but from April 2025, you will pay £20 a year. If your car produces between 101-110g/km of CO2, or between 111-120g/km of CO2, you’re charged £20 or £35 a year in car tax, respectively.

These rates won’t be changing from this April – but for cars that produce more CO2 than these levels, the rate of car tax is going up. For example, if your car produces between 121-130g/km of CO2, the yearly rate for car tax is rising from £160 to £165 a year, while a vehicle that produces over 255g/km of CO2 will see its car tax jump from £735 to £760 a year.

Richard Evans, webuyanycar head of technical services, said: “Despite the changes and increases across the board, EV drivers will still have the most favourable road tax rates from April 2025. The £10 showroom tax for new EV buyers is small compared to the rates for low and higher-emission models.

“Once the changes take effect, owners of EVs first registered before April 2017 will have the cheapest annual road tax rate of all at just £20. This makes older EVs an attractive option for budget used car buyers looking to save on running costs. Meanwhile, road tax rates for cars producing over 76 g/km of CO2 are set to double.

“So, if you buy a new luxury or performance car in the highest emissions band from April 1st, you’ll face a £5,490 first-year road tax bill. Therefore, if ownership costs are a concern, it pays to opt for a greener motor.”

First-year car tax rates from April 2025

• 0g/km – £0 now, rising to £10
• 1-50g/km – £10 now, rising to £110
• 51-75g/km – £30 now, rising to £130
• 76-90g/km – £135 now, rising to £270
• 91-100g/km – £175 now, rising to £350
• 101-110g/km – £195 now, rising to £390
• 111-130g/km – £220 now, rising to £440
• 131-150g/km – £270 now, rising to £540
• 151-170g/km – £680 now, rising to £1,360
• 171-190g/km – £1,095 now, rising to £2,190
• 191-225g/km – £1,650 now, rising to £3,300
• 226-255g/km – £2,340 now, rising to £4,680
• 255+g/km – £2,475 now, rising to £5,490

Car tax rates from April 2025 for cars registered between March 1, 2001 and March 31, 2017

• Up to 100g/km – £0 now, rising to £20
• 101-110g/km – £20 (no change)
• 111-120g/km – £35 (no change)
• 121-130g/km – £160, rising to £165
• 131-140g/km – £190, rising to £195
• 141-150g/km – £210, rising to £215
• 151-165g/km – £255, rising to £265
• 166-175g/km – £305, rising to £315
• 176-185g/km – £335, rising to £345
• 186-200g/km – £385, rising to £395
• 201-225g/km – £415, rising to £430
• 226-255g/km – £710, rising to £735
• 255+g/km – £735, rising to £760