Car tax for under 25s UK — the good news is that Vehicle Excise Duty does not discriminate by age. The same CO2-based rates apply to all registered keepers regardless of age. However, the cars that young drivers typically afford tend to fall into specific tax bands. Here is everything under 25s need to know about road tax in 2026.

Do Under 25s Pay More Car Tax?

No — car tax for under 25s follows the exact same rules as for any other driver. There is no age-based surcharge or reduction in UK road tax. Your VED rate is determined solely by the vehicle's CO2 emissions figure and first registration date.

This means an 18-year-old in a 120g/km Ford Fiesta pays exactly the same £205 first-year road tax as a 50-year-old in the same car. The cost difference comes from insurance, not road tax.

Best Cars for Under 25s to Minimise Road Tax

  • Electric vehicles: £0 first-year road tax — ideal if budget allows. Insurance groups tend to be higher but tax is minimal.
  • Small hybrid (under 75g/km): £10-£30 first year — Toyota Yaris Hybrid, Honda Insight
  • Small petrol (under 120g/km): £165-£205 first year — Ford Fiesta, Vauxhall Corsa
  • Avoid diesels under 100g/km: Few small diesels qualify, and older diesels emit more

Car Tax for Under 25s: The Insurance Group Factor

While road tax is identical for all ages, insurance costs are dramatically higher for under 25s. Young drivers aged 17-24 pay an average of £1,500-£2,500 per year for comprehensive insurance, compared to £500-£800 for older drivers. This makes the total cost of car ownership very different.

Choosing a vehicle with a low insurance group (1-15) is crucial for under 25s. Combined with low CO2 emissions, these vehicles minimise both insurance and road tax — the Toyota Aygo and Hyundai i10 both fall into groups 1-5 with emissions under 110g/km.

Learner and Provisional Licence: Road Tax Rules

A learner driver can tax a vehicle they are learning to drive in, provided they are the registered keeper. If the vehicle belongs to a parent or instructor, the learner cannot tax it in their name until they are the registered keeper. Learners cannot drive an untaxed vehicle on the road for practice.

Conclusion

Car tax for under 25s UK is identical to adult rates — CO2-based, age-neutral. Choose a low-emission vehicle to minimise road tax and look for low insurance group ratings to manage total motoring costs. Use our car tax calculator to compare specific vehicles before buying.