CARFAX Europe Glossary - Vehicle Tax Calculations Made Easy

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Vehicle tax

The vehicle tax is the amount of tax that is paid annually to the taxing authority for a particular vehicle. The amount of tax owed is set by a schedule in each country and will vary from vehicle to vehicle. The tax rate is of importance to consumers as it can be a significant factor in the overall annual cost to own and operate a vehicle.  Knowing the amount of vehicle tax one must pay is an important piece of information and is sometimes overlooked by used car buyers when considering the purchase of a used car. This helpful information is often available in a CARFAX Vehicle History Report.

The vehicle tax rate is usually based on the engine size, which type of fuel it uses (e.g. petrol or diesel), CO2 emissions and the vehicle’s first registration date. The tax rate on a vehicle with an earlier date of registration, for example before 2001, may be calculated based on engine size and the type of fuel it uses, whereas a contemporary vehicle typically needs to adapt to the latest standards in terms of CO2 emissions. While this is the most common way vehicle tax is calculated, there are additional methods of calculation depending on the country in which you’re living.

CARFAX helps you find the information you need to check your own vehicle tax. If the CARFAX Vehicle History Report does not already contain the vehicle tax information, it will provide you with the information necessary to determine the vehicle tax in your country, including the make, model, vehicle year, and other data. This data can then be cross-referenced with the local schedules put in place the transportation authorities in your country. The CARFAX Report is designed to help buyers make the most informed decisions possible when it comes to buying a used car, including things often overlooked – like vehicle tax.