How to know what the amount of car tax is

Purchasing a car comes with various costs, one of which is the car tax. Also known as vehicle excise duty (VED), car tax is a mandatory payment required by the government for owning and driving a car on public roads. The of car tax you have to pay depends on factors such as the type of vehicle, its emissions, and its age. Understanding how to determine the amount of car tax you need to pay is essential for budgeting and ensuring compliance with the law. In this article, we will guide you through the process of determining your car tax.

Firstly, it is crucial to understand the different tax bands that exist and how they correlate with the emissions of your vehicle. The tax bands range from A to M, with A being the lowest emissions and M being the highest. The tax rates increase with each band, so it is important to choose a car with low emissions to save on tax payments. To find out the tax band of your vehicle, check its CO2 emissions on the registration document or ask the dealership if you are purchasing a new car.

Once you know the tax band of your car, you can visit the official government website or use online calculators to determine the exact amount you need to pay. These calculators are simple to use; you just input your car’s tax band, fuel type, date of registration, and any additional information requested. The calculator will then provide you with the annual amount of car tax you are required to pay.

Remember that some cars, particularly electric and low-emission vehicles, may be exempt from car tax or qualify for reduced rates. For example, fully electric vehicles (EVs) are currently exempt from car tax, as they have zero emissions. Plug-in hybrid electric vehicles (PHEVs) receive a discounted rate for the first year and then pay the standard rates. It is important to research the specific exemptions and reduced rates applicable to your vehicle to accurately determine your car tax.

Another factor that affects car tax is the date of registration. Cars registered after April 1, 2017, follow a different tax system, with higher initial rates in the first year. After the first year, they are subject to standard rates. Cars registered before this date continue to follow the previous system of tax bands based on CO2 emissions.

Furthermore, older vehicles (registered before March 2001) have a different tax structure altogether, based on engine size. These vehicles fall into two categories: those with engine sizes up to and including 1549cc, and those with engine sizes over 1549cc. The tax amounts for these vehicles are fixed, with a lower rate for smaller engines and a higher rate for larger engines.

In addition to the annual car tax, it is essential to remember other costs associated with car ownership. This includes insurance, fuel, maintenance, and potential tolls or congestion charges. By considering all these factors alongside car tax, you can accurately assess the total cost of owning and running a car.

In conclusion, determining the amount of car tax you need to pay is relatively straightforward once you understand the tax band, fuel type, and registration date of your vehicle. By using government websites or online calculators, you can easily find out your annual car tax liability. Remember to consider any potential exemptions or reduced rates offered for low-emission or electric vehicles. Understanding your car tax will help you plan your budget effectively and ensure compliance with the law.