Cars with Low Road Tax: Top Picks for 2025

Owning a car means dealing depreciation, insurance, and fuel costs — it’s just part of the deal. But when it comes to road tax, there’s actually room to save. In this guide, we’ll break down how road tax is calculated and share some tips on finding cars with lower costs. We’ll also discuss 12 cars with low road tax, some with none whatsoever.

Understanding Road Tax

Vehicle excise duty (VED), also called road tax, is what drivers in the UK pay to legally use their cars on public roads. This legal requirement was introduced back in the early 1900s, and over time, it’s gone through so many changes.

When buying a new car, the road tax follows the system introduced in April 2017, which gets updated for inflation. However, if you’re buying a used car that was registered before then, the tax will be based on the rules in place when it was first registered.

How Road Tax Is Calculated

The system works in two parts:

• For the first year, your car’s tax depends on its CO2 emissions.
• After that, the tax is based on how much the car cost when it was new, and its emissions.

Electric cars don’tpay road tax until April 2025 when new rules kick in.

How to Reduce Road Tax Costs

If your car isn’t exempt, you’ll need to pay car tax at a flat rate.

To save money, you can choose to pay monthly, but it’ll cost you a bit more in the long run. If you sell your car after paying for the year, you can cancel the tax and get a refund for the unused months. If a car is used by a disabled person, you can apply for a disability exemption.

But it’s worth noting that the real difference comes from the choice of car.

Why Choose Low-Tax Cars?

Opting for a car with cheap road tax can save you money in several ways.

1. First of all, with lower car tax, you’ll pay less each year.
2. These cars are often more fuel-efficient, too,.
3. Plus, cars with lower emissions are better for the environment.
4. They also tend to hold their value better.

Best Cars with Low Road Tax

Here, we’ve put together a list of low road tax cars that are both fuel-efficient and affordable. You’ll find hybrids, SUVs, and family cars, with a focus on older cars registered before 2017 to get the best tax savings.

Volkswagen Golf

The Volkswagen Golf from 2013 onwards is one of the best used hatchbacks, and it’s a car with low road tax.

The 1.6 TDI diesel and 1.0 TSI petrol models have zero tax, with some 2016-2017 cars at £20. For zero tax, the hybrid GTE with its 1.4 petrol and electric motor is a great pick. Other models, like the 2.0 TDI diesel and 1.4 TSI petrol, fall between £20 and £35, depending on the year.

Ford Fiesta

The Ford Fiesta is a top pick in the UK, with plenty available on the used market.

Look at the previous-gen cars from 2008-2017. Some diesel versions with the 1.5 and 1.6 TDCi engines come with zero tax, and the 1.4 TDCi (and a few 1.6s) cost just £20 a year. For petrol, the 1.0 EcoBoost has free road tax, and the 140bhp versions are £20. Also, 1.25-litre petrol models from 2012-2015 come in at £35 a year.

BMW 2 Series

Cheap road tax doesn’t always mean compromising on size or style, and the BMW 2 Series is a perfect example.

This premium coupe delivers a great driving experience with a comfy interior full of high-end features. If you go for a diesel model, you could pay as little as £20 or £35 a year in car tax — look for a 218d or 220d from before April 2017. And if you’re thinking low tax means low power, the 220d’s 190bhp will definitely change your mind.

Hyundai i10

The Hyundai i10 is a great option for those looking to save on running costs. The 1.0 SE Blue Drive and 1.0 SE Blue from early 2017 come with zero tax. There are also plenty of 1.0 cars from before April 2017 that cost just £20 a year to tax. If you go for a 1.2-litre petrol, like the SE or Premium trim with a manual gearbox, you’ll only pay £35 in tax annually.

Mazda 3

The Mazda 3 is a great family hatchback that’s fun to drive, nice to look at, and surprisingly cheap to tax. The 1.5d and SkyActiv-D 105 diesel cars have zero tax, and the 2.2d with a manual gearbox costs just £20 a year. The SkyActiv-D 150 is in the same bracket. Petrol versions like the 1.5, 2.0, or SkyActiv-G 120 are just £35 a year, and even the automatic 1.5d diesel cars stay at £35.

Kia Sportage

The Kia Sportage is a practical, family-friendly petrol car with low road tax. You can choose between the standard petrol engine or the plug-in hybrid, and both will offer great fuel efficiency. The plug-in hybrid model can drive up to 43 miles on electric power alone, and the petrol engine gives you up to 54.3mpg.

Mini Hatch

The Mini Hatch has been a top choice since 2014, and there are plenty of used cars around. The 1.5 Cooper D from before April 2017, for example, has zero car tax. The 2.0 Cooper S D diesel and some 1.2 Mini One petrol cars fall into the £20 bracket. A few others hit £35, but that’s still pretty affordable for a fun, stylish car like this one.

Renault Captur

The Renault Captur PHEV is a great car with low road tax and up to 32 miles of electric driving. With the £10 hybrid discount, it’s affordable to run, and Renault claims it will achieve up to 188mpg in the best conditions. Plus, insurance groups range from 13 to 20.

Mercedes-Benz GLA

Finding a Mercedes-Benz SUV with low road tax might seem impossible. Just choose an entry-level diesel model from the 2014-2017 GLA-Class and enjoy the prestige of the Mercedes brand, plus a higher driving position, with a tax rate of just £20 or £35 a year.

The 200 CDI and 200d engines offer great fuel economy, and you’ll have a good range to choose from on the used market because of the numerous trim options.

Peugeot 3008

The Peugeot 3008 is a great family SUV with style and practicality. If you find a model from before April 2017, you could pay a low tax rate of £20. Look for 1.6 BlueHDi 100 diesel cars for the lowest rate, or the 1.2 PureTech 130 petrol, which costs £35 a year.

Nissan Qashqai

The 2014-2017 Nissan Qashqai is worth a look, especially the 1.5 dCi or 1.6 dCi diesel versions. Depending on the used examples and their trims, you could be looking at car tax of £0, £20, or £35 a year. For that, you get ample space and a car that’s a pleasure to drive. All trims come well-equipped.

MG HS

Looking for a family SUV that’s both fun to drive and easy on your wallet? The MG HS is the way to go. It’s a budget-friendly petrol car with low road tax, and if you’re keen on saving fuel, the hybrid version is a smart option, too.

Conclusion

To sum it up, cars with low road tax are a smart choice for both your wallet and the environment. They offer savings on running costs, hold their value better, and have fewer emissions. If you look at hybrid or pre-2017 cars, you’ll get the most out of your budget without compromising on performance.

And with tools like Carplus, you can compare financing options to find the best deal for you!