Major car tax changes could see millions of drivers slapped with £2,745 bill - How much will you pay?

Chancellor Rachel Reeves introduced a number of new car tax measures in last October's Autumn Statement, many of which were aimed at boosting uptake of zero emission vehicles.

GB News has rounded up the most important changes and the new costs you will be required to pay to stay on the road.

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First year tax rates

Rachel Reeves changes first year tax rates in October to help bridge the gap between traditional internal combustion engine vehicles and zero emission vehicles.

0g/km - Rising from £0 to £10

1-50g/km - Rising from £10 to £110

51-75g/km - Rising from £30 to £130

76-90g/km - Rising from £135 to £270

91-100g/km - Rising from £175 to £350

101-110g/km - Rising from £195 to £390

131-150g/km - Rising from £270 to £540

151-170g/km - Rising from £680 to £1,360

171-190g/km - Rising from £1,095 to £2,190

191-225g/km - Rising from £1,650 to £3,300

226-255g/km - Rising from £2,340 to £4,680

Over 255g/km - Rising from £2,745 to £5,490

Vehicle Excise Duty

The standard rate of car tax will also increase today, with drivers facing a cost hike in line with inflation, as has been the case in recent years.

The Budget confirmed that standard Vehicle Excise Duty rates for cars, vans and motorcycles, excluding first year rates for cars, would rise in line with the Retail Price Index.

While drivers will be required to pay more, the change will not be as stark as it is for those buying new vehicles. The new standard rate will be £195.

Expensive Car Supplement

The Expensive Car Supplement applies to vehicles with a market value of more than £40,000, and costs drivers an additional rate of £425.

Drivers are required to pay the fee for five years from the start of the second licence, which is paid alongside the standard rate of £195.

Chancellor Rachel Reeves acknowledged that the current VED threshold has a "disproportionate impact" on people looking to buy zero emission vehicles.

Budget documents added: "[The Government] will consider raising the threshold for zero emission cars only at a future fiscal event, to make it easier to buy electric cars."

LATEST DEVELOPMENTS:

• Car tax changes launching today will see drivers pay for the first time with 1.4 million Britons impacted
• Drivers with new petrol and diesel cars face £5,490 tax hike today as Rachel Reeves pushes electric vehicles
• Low Emission Zone update could see drivers lose funding across major UK cities as grant ends today

Electric cars

For the first time, owners of electric cars will be required to pay Vehicle Excise Duty (VED), despite pleas from many experts to keep the zero emission vehicles exempt.

Any electric, zero or low emission cars registered on or after April 1, 2025, will need to pay the lowest first year rate of vehicle tax, which will cost them £10, before moving to the standard rate of £195.

Zero emission vehicles registered between April 1, 2017, and March 31, 2025, will pay the standard rate from April 1, 2025, which will cost £195.

Meanwhile, any EVs registered between March 1, 2001, and March 31, 2017, will move to the first band that has a VED value which is currently £20.

Electric vans and motorcycles will also be liable for paying Vehicle Excise Duty.

Cars registered between March 1, 2001, and April 1, 2017

Band A (Up to 100g/km) - Rising from £0 to £20

Band B (101-110g/km) - Remains at £20

Band C (111-120g/km) - Remains at £35

Band D (121-130g/km) - Rising from £160 to £165

Band E (131-140g/km) - Rising from £190 to £195

Band F (141-150g/km) - Rising from £210 to £215

Band G (151-165g/km) - Rising from £255 to £265

Band H (166-175g/km) - Rising from £305 to £315

Band I (176-185g/km) - Rising from £335 to £345

Band J (186-200g/km) - Rising from £385 to £395

Band K (201-225g/km) - Rising from £415 to £430

Band L (226-255g/km) - Rising from £710 to £735

Band M (Over 255g/km) - Rising from £735 to £760