Best cars with low road tax 2026

Which cars have low road tax?

Cars with low road tax are an ideal way to cut down on the costs of running a vehicle.

Vehicle Excise Duty (VED, or more commonly known as road tax) is a legal requirement in the UK for any car that’s driven or stored on the public road. Even if your road tax were to be free, you'd still need to tax your vehicle.

With insurance prices rising and fuel costs getting steeper, road tax is an area where you might be able to save some money.

Why do some cars have no road tax?

All cars in the UK must have road tax, but there have been some exceptions where that road tax is free.

Before April 2017, VED was purely based on emissions, and the least-polluting models now cost as little as £20 or £35 a year to tax. Cars emitting under 100g/km CO2 used to be free to tax, but they now get charged £20, so they're no longer free.

Since April 2017, emissions have only impacted the first year's tax. From year two onward, all cars pay the same flat fee, which is currently £200.

It's worth noting that cars sold for more than £40,000 also have a £440 surcharge for five years. In simple terms, that's a total of £640 per year from year two to year six.

The Government raised that £40,000 limit to £50,000, but only for electric cars registered after April 2025.

So the cheapest cars to tax are:

• All cars with low or no emissions registered before April 2017

• Cars costing under £40,000

• Electric cars costing under £50,000, registered after April 2025

Low road tax cars

Take a look at our top picks for cars with low road tax.

• Nissan Qashqai

• Škoda Fabia

• BMW 2 Series

• Ford Fiesta

• Hyundai i10

• Kia Sportage

• OMODA 7

• Mercedes GLA

• Audi A3

• Tesla Model Y

Nissan Qashqai

If you want a car with low road tax, the Nissan Qashqai is a top pick. Not only is it ideal for keeping running costs low, but it’s a great all-rounder to live with.

With a roomy interior and a 504-litre boot, the Qashqai is hard-wearing and built to withstand daily use. It will be well-suited to busy families that need practicality and reliability.

Most models came in at under £40,000 new, so you can take your pick from easy-to-live-with mild hybrid power or efficient and punchy e-POWER variants. Just watch out for some newer Tekna and Tekna+ versions because they may have been sold for over £40,000, attracting the higher VED fee.

An older Qashqai from before 2017 can cost as little as £20 per year to tax.

Škoda Fabia

The Škoda Fabia is another low-road tax car that'll cost you £200 per year for models after 2017, but older models from before 2017 can cost as little as £20 per year to tax.

We think this one will suit drivers who aren’t buying into the SUV trend and want something sleek for day-to-day use.

Škoda even claims you can achieve up to 80mpg with the diesel engines, but we think you’re likely to get closer to 60mpg in the real world – meaning it’s still going to be cheap to run all-round.

BMW 2 Series

If you want a luxurious sporty vehicle that’s great to drive and you’ll be proud to be seen in, the BMW 2 Series is a car with low road tax, surprisingly.

In fact, a 2 Series from 2017 onwards can cost you as little as the £200 standard rate per year.

Even a spicy 220i M Sport model can be taxed at that rate, and you’ll get to enjoy 184hp and a 0-62mph time of just seven seconds.

It’s worth noting that 2 Series cars with a list price of over £40,000 (when they were new) have to pay that extra fee for five years, which is why something like an M240i wouldn't be as cheap to tax.

This might be an incentive to keep specifications and extras to a standard level.

BYD SEALION 5

The BYD SEALION 5 is an excellent choice for families who need a lot of space – it rivals many of the UK's best-selling SUVs, but for much less money.

Beyond the lower purchase price and excellent running costs, its DM-i plug-in hybrid powertrain also keeps tax low, with many trims coming in around £10,000 under the luxury car tax threshold.

The 463-litre boot is pretty average, but it's a lot bigger than your typical family hatchback. The SEALION 5 also has a lot more space in the back than hatchbacks, so even adults will be comfortable.

BYD's testing gives all variants well over 600 miles of combined electric and petrol range at an average of over 50mpg.

Hyundai i10

The Hyundai i10 is part-city car and part-supermini. Well-equipped, peppy to drive, and easily standing out on the roads, the i10 is a low tax car that rivals the VW Up.

Models from 2017 onwards will typically cost £200 per year to tax, but older i10 models can cost as little as £20 annually.

Given that this car is well under £40,000, we'd consider opting for the turbocharged engine, which feels far more suitable for quicker roads and longer trips.

Kia Sportage

SUVs don’t have to be expensive to run, and the Kia Sportage is a great example of that.

One of Kia’s best-selling models, its high-quality build is perfect for families that need something to back them for daily driving.

It’s one of the best cars with low road tax, coming in at £200 per year for models from 2017 onwards. You’ll want to skip the high-spec models with a list price over £40,000, as this will cost you the extra luxury car road tax fee.

There are also some plug-in hybrid variants on the market for cutting back on fuel costs, as well as a choice of manual and automatic gearboxes.

OMODA 7

While many plug-in hybrids can be out of reach if you're factoring in staying clear of that 'luxury car tax', the OMODA 7 makes a lot of sense.

Petrol and plug-in hybrid models are available, and at the time of writing, all trims are well below that threshold.

It's already a great car, with its hidden scent diffusers and ample space for both passengers and luggage, but wait until you hear the best part.

The plug-in hybrid model will do 56 miles of electric-only range, and even with a flat battery you're likely to get over 50mpg. It's cheap to fuel, and cheap to tax.

Mercedes GLA

The Mercedes GLA is a luxury SUV that’s comfortable and packed with features, but is also one of the best low road tax cars you can buy.

Surprisingly, you can grab a GLA with road tax as low as £200 per year for models after 2020 if you stick to one of the more standard options. Choosing a flashier GLA will mean you’ll need to pay the extra luxury car fee.

Despite it being a chunky SUV, you can still get up to 42.8mpg from petrol models or 53.3mpg from a diesel.

There are also plug-in hybrid models on the market, but these will typically cost more to tax due to the higher list price. Still, you might be able to offset those additional costs with much cheaper fuel costs.

Audi A3

Another luxury contender, the Audi A3, is not only one of the best cars with low road tax but also one of our favourite picks all-round.

It’s a handsome and elegant model that you can get in hatchback and saloon body styles, with that Audi finesse that’s hard to beat.

That latest generation launched in 2020 and has had a few updates since – most cost £200 a year to tax unless you've got a really high-spec edition.

While flashy models like the Audi RS3 might be tempting, they’re not the best pick if you want cheap road tax. Some plug-in hybrid models still fall below that £40,000 band, too.

Tesla Model Y

The Tesla Model Y actually starts to make a lot of sense as a 'cheap to run' car when you look at the finer details. Buy one registered after April 2025, and you're allowed to pick a model that costs up to £50,000.

In many cases, that extends to some Premium and Long Range versions, so you get the most advanced cabin and the longest range – all with very cheap running costs.

Buying used also puts depreciation on your side, because you'll save thousands versus that initial £50,000 price tag.

Giant touchscreen, excellent app control and Supercharger network access aside, the Model Y is also one of the most efficient electric SUVs you can buy.

Learn more about road tax:

• How much is road tax in the UK?

• How much is road tax for electric cars?