Vehicle Excise Duty (VED) tax changes for 2022

May 4, 2022

In 2001, the way in which Vehicle Excise Duty (aka car tax or road tax) was calculated changed to being based on how high or low a car’s carbon emissions were.

And, because the UK government has pledged to reduce net greenhouse gas emissions to zero by 2050, drivers of older, gas-guzzling motors continue to be financially penalised for polluting the environment.

High vehicle emission VED rates continue to rise exponentially with the latest increases being announced in the 2021 budget. This latest set of increased VED prices came into effect on 1 April 2022.

The timing of this unwelcome increase couldn’t be any worse when many UK households are already struggling in the midst of a money-haemorrhaging cost of living crisis.

And if you’re a car driver, extra vehicle tax on top of soaring fuel costs and more expensive car insurance could mean you might have to consider changing cars to something that’s more environmentally friendly and cheaper to run and insure.

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So what are the latest car tax changes and will your car tax go up in 2022? Here’s what you should know about UK VED rates 2022 23.

Car tax changes 2022 UK

What tax band is my car?

Your Questions Answered:

What are RDE2 compliant vehicles?

What is a Diesel Particulate Filter?

Do I need to pay car tax if I’m not using my car?

How do I pay car tax?

Do I need insurance to tax a car?

Is electric car insurance more expensive?

What cars are VED exempt?Tax letters on yellow lined paper

Car tax changes 2022 UK

Upon first registration of a brand new motor vehicle, you have to pay car tax according to your vehicle’s CO2 emissions. 

Unlike pollution enhancing petrol, diesel or hybrid cars, pure electric cars are VED exempt because they do not generate any carbon emissions. [Contrary to popular belief, you pay tax on your vehicle, not ‘road tax’ for driving on UK roads.]

And unless you drive a ‘clean diesel’ vehicle (i.e. one with a Diesel Particulate Filter (DPF) fitted and that meets RDE2 standards), driving a [unclean] diesel fuelled car is going to significantly bump up your vehicle tax price.

You might like to read: Electric car grants and incentives

What tax band is my car?

What tax band your car is in depends on the year it was first registered, its CO2 emissions or, for much older cars registered prior to March 2001, your car’s engine size (cc).

The new car tax changes for 2022 are split into three eras, depending on when your car was first registered:

  • after April 2017 to date
  • between March 2001 and April 2017
  • before March 2001

Each of the above eras has its own unique set of price bands or rates.

You can easily check your car’s current tax banding on the gov.uk’s website.

Check Your Tax Renewal Date & MOT Pass Rate

Alternatively, to see the price bands at a glance, check out our tables below showing the amounts payable for the three different eras, depending on emissions, vehicle type and their fuel or engine sizes.

Further down this page, you can also find current 2022-2023 VED rates for motorcycles, scooters, mopeds and tricycles.

New 2022 VED rates for brand new cars registered from April 2017

CO2 emissions (g/km road tax)

Petrol or clean diesel cars

Non-petrol or other diesel cars

Non-petrol or other diesel cars

Alternative fuel cars (i.e. electric)

0 £0 £0 £0
1-50 £10 £25 £0
51-75 £25 £120 £15
76-90 £120 £150 £110
91-100 £150 £170 £140
101-110 £170 £190 £160
111-130 £190 £230 £180
131-150 £230 £585 £220
151-170 £585 £945 £575
171-190 £945 £1,420 £935
191-225 £1,420 £2,015 £1.410
226-255 £2,015 £2,365 £2,005
>255 £2,365 £2,365 £2,355

After a year has elapsed, all petrol and diesel motors registered from April 2017 have to pay a flat rate of £165 but alternative fuelled cars pay £155 (unless it’s a pure electric vehicle).

To add to the confusion, if your car is worth £40,000 or more, you will have to pay an additional £320 each year for 5 years.

Car tax bands for cars registered before April 2017

Car tax bands

CO2 emissions (g/km road tax)

Petrol or diesel cars

Alternative fuel cars (i.e. electric)

A < 100 £0 £0
B 101-110 £20 £10
C 111-120 £30 £20
D 121-130 £135 £125
E 131-140 £165 £155
F 141-150 £180 £170
G 151-165 £220 £210
H 166-175 £265 £255
I 176-185 £290 £280
J 186-200 £330 £320
K 201-225 £360 £350
L 226-255 £615 £605
M > 255 £630 £620

VED rates for cars or vans registered before March 2001

Engine size (cubic centimetres)

Up front annual cost

< 1549 cc £180
> 1549 cc £295

Van driver tax bands for vans registered after March 2001

Van type

Registration eras

Up front annual cost

LGVs March 2001 - 1 March 2003 £290
Euro 4 1 March 2003 - 31 December 2006 £140
Euro 5 1 January 2009 - 31 December 2010 £140

2022/23 VED rates for motorcycles, mopeds and tricycles

Engine size (cubic centimetres)

Upfront annual cost

< 150 cc  £22
151-400 cc £47
401-600 cc £73
> 600 cc £101

2022/23 VED rates for tricycles only (under 450kg unloaded)

Engine size (cubic centimetres)

Upfront annual cost

< 150 cc  £22
> 151 cc £101

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Your Questions Answered:

What are RDE2 compliant vehicles?

RDE is an abbreviation for ‘Real Driving Emissions step 2’ and is a new artificial laboratory testing method introduced in September 2019 to comply with strict Euro 6d standards. Since that date, it’s mandatory that all brand new vehicles are RDE2 tested to [as accurately as possible] gauge what a vehicle’s emissions will be out on the road.

What is a Diesel Particulate Filter?

A Diesel Particulate Filter (DPF) is a filter that captures and stores harmful diesel engine soot emissions. Since Euro 6 standards were introduced by the EU, Euro 6 compliant DPFs are capable of capturing 99% of harmful soot emissions from diesel engines that would otherwise be released into the environment.

Do I need to pay car tax if I’m not using my car?

Yes, you do have to pay VED if your car is driven or parked on a public road. But no, you do not have to pay car tax if your vehicle is parked on private property (i.e. a private driveway). However, you still need to inform DVLA if a vehicle is not being driven or parked on public roads by submitting what is called a ‘Statutory Off Road Notification’ (SORN).

How do I pay car tax?

Using a V11 reminder letter from the DVLA or a V5C log book (or the green slip from the V5C if you’ve just bought a vehicle), you can arrange and pay for your car tax online, over the telephone (annual payments only), or at a participating Post Office. For more detailed information, check out our car tax renewal guide.

Do I need insurance to tax a car?

Yes, before arranging to tax your car you will first need to arrange car insurance.

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Is electric car insurance more expensive?

No, according to research conducted in 2021, electric vehicle owners pay an average of £45 less per annum than traditional, fossil-fuelled vehicle owners.

What cars are VED exempt?

Brand new electric cars with zero emissions that cost less than £40k, or cars that were first registered between 1 March 2001 and 1 April 2017 that emit a maximum of 100g of CO2 per kilometre driven. There are also VED exemptions for disabled drivers in receipt of certain disability benefits.

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