'April cruel day' Car road tax changes explained from price increases to new bands

1 April 2025, 12:49

How much is road tax going up in 2025? And what are the new tax rates? Here's all the latest important information including for those who own electric vehicles.

From April 1st 2025, a number of household bills are increasing across the UK with car road tax prices being one of them.

With prices set to increase for all car owners, even those with electric vehicles, there are some big changes coming into play this year which includes altering emissions bands, first year tax price rises and additional expensive car supplements.

Also known as Vehicle Excise Duty (VED), here's everything you need to know from how road tax is changing for electric vehicles, how much prices are increasing by and why they're going up so much.

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How much is road tax going up?

Generally, standard road tax rates will increase by £5 for most vehicles that were registered after April 2017.

The standard road tax rate was £190, but households will now pay £195 if they own a petrol, diesel, hybrid or electric car. Hybrid owners had a £10 discount before these changes and electric cars were free.

If your car was registered new between March 2001 and 31st March 2017, you will pay car tax based on your emissions which can see existing annual prices rise between £5 to £25.

The biggest change in car tax prices happens if you're thinking of buying a new car as first-year tax rates are seeing an incredible increase.

When buying brand-new, your first year of charges will be based on emissions before you pay the standard road tax prices in year two and as of April 2025, they are practically doubling. For example, a new car with emissions of 101-110g/km will rise from £195 to £390.

How are electric car road tax charges changing?

Previously, electric cars were exempt from road tax charges but as of April 1st 2025 that's all changed.

For the first time, they will also be paying first-year tax rates with 0g/km of emissions now being a charge of £10. These are of course significantly lower than petrol, diesel and hybrids but still more than before.

They will also now be paying standard road tax prices when they go into their second year and beyond which will be around £20 annually.

What is the expensive car supplement and how is it changing?

Previously £410, people who own cars that were £40,000 when new will now pay an extra supplement of £425 a year. This is paid for the second to sixth year your car is on the road.

This will also apply to electric vehicles of that value.

Why is road tax increasing?

The rate increase is mostly down to matching the price of inflation. Of course, with more people switching to electric vehicles to help the environment now, less money is coming in meaning more charges were needed to raise the gap in funds.