Car tax 2021/2022: How much will my road tax be?

Martin Lewis gives money-saving advice on VED car tax

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Road tax is paid every year by British motorists, and can be anything up to more than £2,000 annually. It’s an essential payment that has to be made if you want to drive a vehicle on a public road.

Even if you’re not driving your car, and just keeping it parked outside your house, you’ll still need to pay road tax.

The Government asks the public to pay road tax as an incentive to use public transport.

Driving your own personal car pumps carbon dioxide (CO2) into the atmosphere, contributing to climate change.

Your own car’s road tax will be reflective of the amount of CO2 it emits – the more polluting it is, the higher the tax will be.

Road tax – or Vehicle Excise Duty (VED), as it’s officially known – tends to increase a little bit each year.

The tax year starting on April 2021 will be no different, with a slight increase to annual payments.

But, you’ll be exempt from road tax if you have a fully electric car or hydrogen fuel cell car, as they have zero tailpipe emissions.

After the car’s first year of being on the road, car tax will be capped at £155 for most vehicles.

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Certain diesel cars will also have to pay a slight premium if they don’t meet the Real Driving Emissions 2 (RDE2) standard for nitrogen oxide emissions.

If you’re not sure whether your vehicle meets the RDE2 criteria, you can simply ask your vehicle manufacturer.

RDE2 diesel cars will be taxed the same amount as standard petrol vehicles.

Those using alternative fuels, including biofuel and electricity, will have to pay smaller amounts of road tax.

How much will my road tax be?

CO2 emissions (g/km) – Petrol and RDE2 diesel cars – All other diesel cars – Alternative fuel cars

1 to 50g/km – £10 – £25 – £0

51 to 75g/km – £25 – £115 – £15

76 to 90g/km – £115 – £140 – £105

91 to 100g/km – £140 – £160 – £130

101 to 110g/km – £160 – £180 – £150

111 to 130g/km – £180 – £220 – £170

131 to 150g/km – £220 – £555 – £210

151 to 170g/km – £555 – £895 – £545

171 to 190g/km – £895 – £1,345 – £885

191 to 225g/km – £1,345 – £1,910 – £1,335

226 to 255g/km – £1,910 – £2,245 – £1,900

Over 255g/km – £2,245 – £2,245 – £2,235

If you’re not sure how much should you be paying in road tax, you can easily check online.

Simply head to the Government website here, which will show the vehicle’s CO2 emissions based on the most recent MOT.

The website will also show when the vehicle was last taxed, and when your MOT is set to expire.

If you’ve recently bought your car, the previous tax will need to be updated, even if it’s just been paid by the previous owner.

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