Here's our guide to the cost of road tax
Road tax in the UK is linked to the engine size and emissions of your car.
If your car was registered before 1st March 2001, your road tax is dictated by the car's engine size. You'll pay less for a car up to 1549cc than one with a larger engine.
From 2001 on, the road tax price is determined by emissions. Cars with up to 100g/km CO2 emissions are tax exempt, and there are low tax rates for the 101 - 110g/km CO2 and 111 - 120g/km CO2 bands.
You can check your car's CO2 emission figures (if it was registered after 1st March 2001) on the DVLA's vehicle enquiry web page.
The actual price for a road tax disc will also depend on whether your car uses petrol or diesel, or runs on an alternative fuel (biodiesel, natural gas, LPG, ethanol FFV or fuel cell). There's also a higher rate for a vehicle's first year of registration (in effect, a new car tax). And of course, the road tax rates often change with a new Government budget. To find the latest figures, go to the appropriate Government web page.
So, how do you pay less road tax? Not surprisingly, the answer is to drive a smaller engined and less polluting car, ideally registered after 1st March 2001. And if your budget can stand it, buy 12 months tax rather than six months - it can save you up to £40 a year.
There is a way to drive and pay no road tax at all. Historic vehicles - those built before 1st January 1973 - are exempt from road tax fees, though they still have to display a tax disc. And that applies whether you're driving a Cortina or a Cadillac!