Vehicle Excise Duty Changes - 1 April 2025

Beat the increase in Vehicle Excise Duty.

Anyone looking to buy a new car this year will face significant increases in the rate of vehicle tax for the first license from the 1 April 2025.The tables show the current rate of tax along with the new rates which will take effect soon. 

If you want to beat the increase, now is a great time to take delivery of a brand new Mercedes-Benz, with fantastic new car offers across the range including the first two services free*. Click below for the latest new car offers. 

Current rates of Vehicle Excise Duty:

First Licence Rates for cars registered up to 31/03/2025.

CO2 Petrol / Diesel Car* Alternative Fuel Car
0 £0 £0
1 to 50 £10 £0
51 to 75 £30£20
76 to 90 £135 £125
91 to 100 £175 £165
101 to 110 £195 £185
111 to 130 £220 £210
131 to 150 £270 £260
151 to 170 £680 £670
171 to 190 £1,095 £1,085
191 to 225 £1,650 £1,640
226 to 255 £2,340 £2,330
Over 255 £2,745 £2,735

*Diesel cars tested to RDE2 standards

New Rates of Vehicle Excise Duty:

First licence rates for cars registered on or after 01/04/2025.

CO2 All Vehicles
0 £10
1 to 50 £110
51 to 75 £130
76 to 90 £270
91 to 100 £350
101 to 110 £390
111 to 130 £440
131 to 150 £540
151 to 170 £1,360
171 to 190 £2,190
191 to 225 £3,300
226 to 255 £4,680
Over 255 £5,490


Price Increase effective 01/04/2025. The table below shows you how much more you would have to pay from 1 April 2025 for the equivalent car. 

CO2 Petrol / Diesel Car* Alternative Fuel Car
0 £10 £0
1 to 50 £100 £110
51 to 75 £100 £110
76 to 90 £135 £145
91 to 100 £175 £185
101 to 110 £195 £205
111 to 130 £220 £230
131 to 150 £270 £280
151 to 170 £680 £690
171 to 190 £1,095 £1,105
191 to 225 £1,650 £1,660
226 to 255 £2,340 £2,350
Over 255 £2,745 £2,755
T&C's

*First two services (taken at set mileage intervals), covering one A and one B Service. Product differs between models and in NI. Exclusions & T&Cs apply. Orders between 12.12.24 - 31.03.25.