Your choice of fuel type has a direct impact on how much road tax you pay. The VED system is primarily based on CO2 emissions — and different fuel types produce different emissions profiles that determine your tax band and first-year rate.
Petrol Cars and VED
Petrol cars cover a wide range of CO2 emissions, from sub-100g/km efficient hatchbacks to high-performance sports cars exceeding 300g/km. The VED system places petrol cars in bands from Band A (£0 first year) to Band M (£2,605 first year for cars over 255g/km). In the standard rate years, most petrol cars pay either £180 or £200 depending on their emissions band. The fuel type itself does not change the rate — only the emissions matter for tax purposes.
Diesel Cars and the Supplement
Diesel cars face a higher first-year rate than equivalent petrol cars due to the diesel supplement. This applies to all diesel cars that are not official alternatively fuelled vehicles — adding an extra charge on top of the standard CO2-based rate. From April 2025, diesel cars that are not alternatively fuelled pay an additional supplement in the first-year rate. This means a diesel car with the same CO2 emissions as a petrol car will typically cost more in the first-year tax bill.
Hybrid Vehicles and Tax
Self-charging hybrids — vehicles with both a combustion engine and an electric motor — are treated as petrol or diesel vehicles for VED purposes based on their CO2 emissions. The electric assistance reduces fuel consumption but does not eliminate the CO2 emissions that determine the tax rate. The emissions figure recorded on the V5C is used to calculate VED, regardless of the hybrid system's contribution. Plug-in hybrids with very low CO2 figures (£0 to £10 first-year rate) benefit most in the first year. Related: Car Tax Petrol Diesel Hybrid UK 2026 | Car Tax and Petrol vs Diesel UK 2026 | Car Tax and Petrol vs Diesel UK 2026 | Car Tax.
Long-Term Fuel Type Cost Comparison
When calculating the lifetime cost of road tax by fuel type, electric vehicles come out ahead with zero standard rate VED. Hybrids pay standard rates once the first-year period expires — typically £180. Diesel cars pay a slightly higher standard rate in some bands. The fuel type choice also affects other costs — diesel vehicles may have better fuel economy, while petrol vehicles often have lower maintenance costs. The total cost of ownership should include VED alongside fuel, insurance, and maintenance.
Fuel Type and Future Tax Policy
As the UK moves towards 2030 when new petrol and diesel car sales end, the fuel type question will become simpler — by 2035, all new cars must be zero-emission at the tailpipe. The tax implications of different fuel types will diminish as EVs dominate new car sales. However, the existing fleet of petrol, diesel, and hybrid vehicles will remain on the roads for decades, meaning the current fuel-based tax distinctions will persist for many years.
Official Resources: GOV.UK Check Vehicle Tax | GOV.UK Vehicle Tax | DVLA Online | MOT Check
Frequently Asked Questions
Q: How much is car tax (VED) in the UK 2025?
Car tax rates in the UK depend on your vehicle's CO2 emissions and list price. Standard rates start from £190 per year for petrol and diesel cars, with zero-rated VED for EVs. First-year rates vary from £0 to £2,605 depending on emissions. Additional premiums apply for vehicles over £40,000.
Q: How do I check if my car is taxed online?
You can check your vehicle's tax status for free on the Gov.uk website at gov.uk/check-vehicle-tax. You'll need your vehicle's registration number (number plate). You can also check via the Motor Insurance Database to verify road tax and insurance status simultaneously.
Q: Can I get a refund on car tax if I sell my vehicle?
Yes — if you sell or scrap your vehicle, you can claim a refund on any full months of remaining road tax. Contact DVLA with the V11 reminder letter or apply online at gov.uk. Refunds are usually processed within 4-6 weeks.
Q: Is road tax refund available when transferring ownership?
No — road tax does not transfer with the vehicle. When you sell your car, the tax is automatically cancelled and any remaining months are refunded to you by DVLA. The new owner must tax the vehicle immediately. As a buyer, always verify the vehicle's tax status before purchasing.
Q: What is the luxury car tax threshold in the UK 2025?
The additional rate for vehicles over £40,000 (list price) adds £410 per year to standard VED rates for years 2-6 of registration. This surcharge brings the annual cost for high-emission vehicles over £40,000 to around £600-690 per year. Pure EVs under £40,000 pay zero VED.