There are new first-year car tax rates – also known as the showroom tax – coming into force from April 2025 and it could see you slapped with a £5,490 bill
Drivers will be hit with a major shake-up of car tax rules next year that could see your total cost double to £5,490.
There are new first-year car tax rates – also known as the showroom tax – coming into force from April 2025. Electric car drivers will be forced to pay tax on their vehicle for the first time, while the rates applied to cars with the worst emissions will double.
If you have a zero emissions car, you will pay the lowest first-year rate of £10. Then from the second year onwards, you will pay the standard rate of £195. If you purchase a new vehicle from April 2025 that emits between 1-50 g/km of CO2, including hybrid vehicles, the amount you’ll pay in car tax will rise from £10 to £110.
The rates for new cars emitting 51-75g/km of CO2 will increase from £30 to £130, while all other rates for cars emitting 76g/km of CO2 and above will double from their current level. For a car that emits over 255g/km of CO2, the first-year rate will double from £2,745 to £5,490.
The changes will affect new cars purchased from April next year – so if you have a used car, you won’t be affected by the higher rates. But if buying a new car is top of your list for 2025, This is Money has revealed how much the ten most popular new cars will cost to tax.
Volkswagen Polo
The 1.0-litre TSI petrol (109bhp) manual in Life trim has the lowest CO2 emissions of of 116g/km, which means the tax applied to this vehicle if you’re buying it straight out of the showroom will jump from £220 to £440. At the other end of the scale, the Polo GTI emits 149g/km of CO2, which means the first-year car tax rate will rise from £270 to £540.
Tesla Model Y
The Tesla Model Y emits zero CO2 emissions, so you will pay the lowest first-year car tax rate of just £10. Chancellor Rachel Reeves owners of zero-emissions cars will see this rate retained until 2029/30. After the first year, the standard rate of VED for EVs will be £190 a year.
Audi A3
The Audi A3 40 TFSI e S-Tronic emits 7g/km of CO2, and so if you buy one of these brand new, the car tax applied will jump from £10 to £110. If you buy the RS3 in Carbon Vorsprung TFSI quattro S tronic spec, with CO2 emissions of 213g/km, the car tax straight out of the showroom will increase from £1,650 to £3,300.
MG HS
The first-year car tax for a MG HS Plug-in Hybrid SE Auto 2 Speed (12g/km CO2 emissions) will jump from £10 to £110 if you buy one after April. If you opt for the SE DCT 7 Speed, which emits CO2 emissions of 173g/km, the car tax is going up from £1,095 to £2,190 for a brand new model.
Hyundai Tucson
Those looking to purchase a Hyundai Tucson Plug-in Hybrid 1.6T 252PS automatic 2WD will pay car tax of £110 from next April, up from £10 now. This vehicle emits just 22g/km CO2. But if you went for the 1.6T 160PS 6 Speed Manual 2WD N Line S (158g/km CO2) then your showroom tax would jump from £680 to £1,360.
Volkswagen Golf
The 2.0-litre diesel Volkswagen Gold in Match 115PS 6-speed manual trim pumps out 117g/km CO2 and the showroom tax on this will double from £220 to £440. Or if you were to buy a brand new VM Golf R in 2.0 TSI petrol 4Motion 333PS 7-speed DSG auto trim (186g/km CO2) your tax liability would jump from £1,095 to £2,190.
Nissan Juke
Those who fancy the Nissan Juke 1.6-litre hybrid 143 N-Connecta (109g/km CO2) currently pay a first-year tax rate of £185 – but this will go up to £370. But the DiG-T 114 N Sport petrol with the DCT automatic gearbox, which has an output of 138g/km CO2, will go up from £270 to £540.
Nissan Qashqai
The Nissan Qashqai hybrid e-Power 2WD version in Acenta Premium specification emits CO2 emissions of 116g/km – so if you buy one brand new from next April, the car tax will rise from £210 to £420. Meanwhile, the DiGT 158 4WD Xtronic automatic in Tekna+ trim (157g/km CO2) will double from £680 to £1,360.
Kia Sportage
Drivers looking for a brand new Kia Sportage 1.6 T-GDi Plug-in Hybrid with all-wheel-drive (28g/km CO2) currently pay £10 in showroom tax, so this will increase to £110. Or if you go for the SUV (1.6T petrol with front-wheel drive, 149g/km CO2) your car tax rate will rise from £270 to £540.
Ford Puma
Buying a Ford Puma 1.0-litre 125PS in Titanium trim (121g/km CO2) from the showroom currently comes with a car tax bill of £220 – but this will double to £440. The Ford Puma ST has emissions of 137g/km and so its first-year car tax will rise from £270 to £540.