Road tax
The recurring tax for keeping a car registered and on the road, set by each country and often tied to emissions, weight, or engine size.
Beyond the purchase lies a quieter, recurring bill: the annual charge for keeping a car legally registered and driving. The UK calls it Vehicle Excise Duty (VED), colloquially road tax. For cars registered from April 2017 it has two stages: a first-year rate based on the car's official CO2 g/km, then a flat standard rate. Other countries use other names and bases, and some charge one-off registration taxes instead of, or as well as, an annual charge.
Electric cars were long exempt from VED, but the change introduced on 1 April 2025 means electric, zero and low emission cars now pay it too, for both new and existing vehicles. An expensive car supplement also applies above a list price threshold, which differs for electric and other cars.
Because every scheme is revised from time to time, treat any specific amount as dated and confirm current rates with your national authority. CarPairly's TCO tool has no separate recurring road tax term, so add your own local charge to its result.
Differs by market
The UK's version is Vehicle Excise Duty. Other markets use their own systems; for example, France charges one-off taxes at first registration (see bonus-malus) and Norway charges a one-off registration tax. Check your national authority for current rates.