What Are the Cheapest Cars with the Cheapest Road Tax?

Check out our recommendations for cheap cars with cheap road tax.

Ford Fiesta

If you’re looking for a car with low road tax and low running costs, the Fiesta is a solid choice. Most models from 2017 onwards will only cost you around £195 a year in tax. You might even get a better rate if you go for an older version with a 1.0-litre EcoBoost engine, as these models can qualify for £20 road tax, depending on the specific emissions rating and registration date.

Because Fiestas are so popular, parts are easy to find, and maintenance tends to be straightforward, car insurance is often affordable, too. Plus, the widespread availability of used models means you can shop around to find a well-maintained car at a very competitive price. 

Nissan Qashqai

For lower road tax, the Nissan Qashqai is definitely worth a look. With a large interior space and a generous 504-litre boot, the Qashqai is built to handle the demands of everyday use. For drivers, reliability and manageable costs are crucial, and the Qashqai certainly delivers on both these points. Whether it's the school run or the weekly shop, the Nissan Qashqai can handle everyday life with ease, all whilst being kind to your wallet. 

For models registered from 2017 onwards, you’re looking at around £195 a year in road tax—that’s the standard rate in the UK after the first year. But if you go for an older Qashqai (pre-2017), you could pay as little as £20 a year, depending on the CO₂ emissions.

Skoda Fabia

Practical, good looking and great to drive, the third-generation Skoda Fabia, sold between 2015 and 2021, was one of the smartest and best-value small cars of its time—and it still holds up today in the used market.

If you're after low tax, look for a 1.6-litre diesel model from 2014 to 2017. These versions qualify for just £20 a year in tax. Available with good fuel economy and low running costs, the Skoda Fabia can help drivers keep costs down from all angles. It’s also fun to drive, nippy and agile on the roads, and is a strong choice for both families and individuals alike. 

Hyundai i10

Renowned for building cheap, small, and incredibly reliable cars, Hyundai certainly sets the standard for dependability that’s easy on your wallet, and a great example of this is the Hyundai i10. One of the biggest selling points of the Hyundai i10 (sold from 2014 to 2020) is how cheap it is to run. Many versions cost just £20 a year in road tax, and it comes with a choice of a fuel-efficient petrol engine that also sits in low insurance groups, making it a smart pick for budget-conscious drivers.

Despite the i10 being a smaller vehicle, it’s incredibly practical and surprisingly roomy inside, with plenty of space for four adults and a good amount of boot space, making running errands efficient and easy. It also comes with a strong reliability record, so drivers can expect fewer issues and fewer repair bills as well! 

BMW 2 Series

If you’re thinking of a luxury car with surprisingly low road tax, then the BMW 2 Series will tick all the right boxes. Models from 2017 onwards can fall into the standard £195 yearly rate, even the sporty 220i M Sport, which delivers a punchy performance of 181 hp and hits 0–62mph in just seven seconds.

Vehicles in this range are well equipped with premium interiors, smart menu systems, good handling and, naturally, a strong performance, this means even budget-conscious drivers can enjoy sitting behind the wheel of a high-performance vehicle without the hefty road tax bill. 

It's worth noting that if the car costs over £40,000 when new, it’ll come with an extra £425 per year in tax for five years starting in the second year.

KIA Sportage

Family friendly and solidly built, the KIA Sportage is an excellent example of how a family SUV doesn't always have to come with high running costs. Models from 2017 onwards usually fall under the standard £195 annual road tax rate. Just steer clear of versions that originally cost over £40,000 to avoid the luxury car tax.

If you're environmentally conscious, you’ll also find plug-in hybrid options, ideal if you want to save even more on fuel, plus both manual and automatic versions to suit your driving style. Entry-level trims usually come with great features like touch screen menus, air con, and even reversing cameras, so budget-conscious drivers can enjoy a comfortable and smooth ride whether they’re running errands or driving on the motorway.  

Ford Focus

A definite UK favourite and a common sight on UK roads, the Ford Focus is a practical, well-equipped, and efficient choice for drivers looking to keep costs down, especially when it comes to road tax. Most post-2017 models are taxed at the standard £195 per year, while some pre-2017 versions qualify for £20 a year.

A great car for families, the Ford Focus is modern and stylish, with EcoBlue diesel models equipped with Apple CarPlay and Android Auto as standard. Essentially, it's an all-round cheap-to-run model that offers a great driving experience and plenty of modern features. 

Mercedes GLA

You may not have expected to see a Mercedes on this list, but drivers don’t have to sacrifice luxury to keep their road tax down. This stylish and comfortable SUV is surprisingly affordable to run, and a standard Mercedes GLA model registered after 2020 costs just £195 a year in road tax.

Opting for a lower trim level can help avoid the luxury car tax surcharge, which applies to higher-priced variants. You’ll also get decent fuel economy, with petrol models offering up to 42.8mpg and diesels reaching around 53.3mpg. Plug-in hybrid options are available, though they can push up tax costs.

Renault Kadjar

As a spacious and highly practical SUV, the Renault Kadjar appeals to both families and drivers who like plenty of additional space but without the bulk. With a roomy interior and a comfortable driving experience, the Kadjar is very affordable, and drivers have the luxury of choosing between a diesel engine or a petrol one, as well as automatic gearboxes or manual options. 

To keep road tax down to £20 a year, make sure you select the correct version and consider the Renault Kadjar with the 112PS 1.5-litre diesel engine, which will help reduce running costs further. 

MINI Hatchback

MINIs aren't just affordable to run, they’re also fun to drive and have a stylish interior that gives them the edge over other smaller cars on the road. With great fuel economy and a range of trim levels that still keep you in the cheaper tax bracket, it’s easy to see why the MINI Hatchback is a sensible choice for budget-conscious drivers. 

For instance, some petrol and diesel versions of the MINI Hatchback qualify for £20-a-year road tax, look out for the MINI Cooper or ONE for petrol power, or go for the Cooper SD diesel if you want a sportier drive without high costs.

Road tax is payable on vehicles used or kept on public roads. Not everyone pays the same amount of road tax, and there are several factors that will influence the rate you might pay.

• CO2 emissions: How much CO2 a car produces is a significant factor in road tax costs. For new cars, it affects the first year’s tax, and for cars registered between March 2001 and March 2017, it also affects the yearly tax. In general, the lower the emissions, the lower the tax.
• List price (when the vehicle was new): If a car was first registered after April 2017 and cost more than £40,000 (this includes any extras), drivers have to pay extra road tax for five years. This begins from the second year and is known as the "expensive car supplement".
• Date of first registration: This decides which road tax rules apply to the car, as different rules and tax rates are used depending on when the car was first registered.
• Fuel type: Fuel type once played a bigger role in road tax costs, but its impact has reduced under the current system. For most cars registered after April 2017, the standard annual rate is the same for petrol and diesel, with alternative fuel vehicles registered before 2025 (like hybrid models or LPG) getting a small £10 discount. However, it's worth noting that diesel cars that don't meet RDE2 standards may still face slightly higher first-year charges.

If you're looking to keep running costs low, then understanding which VED system your potential car falls under can help to predict the amount of road tax you might pay. You can check road tax rates for a new or older vehicle on the government website, but here is a breakdown of how it works for cars registered on or after April 2025.

First year rate (FYR)

This applies when a brand-new car is registered. Owners will pay a one-time car tax based on the CO2 emissions:

• Electric cars (zero emissions): £10
• Petrol, diesel, and hybrids: The more CO₂ the car emits, the higher the cost, starting at £110 and going up to £5,490 for the most polluting cars, though it’s very unlikely you’ll hit the highest rate. This system encourages people to choose cleaner vehicles.

Standard rate (SR)

From the second year and beyond, most owners of cars registered from 2017 onwards will pay a flat annual road tax fee of £195. This includes electric and hybrid vehicles. However, rates do change, though it’s always best to verify current rates on the UK government site.

Expensive car supplement

If your car's list price is more than £40,000 when new (including any extras), you'll have to pay an extra £425 per year for five years, starting from the second year.

There have been exceptions in the past where road tax has been at zero for certain vehicles. This was usually the case for electric vehicles; however, as of April 2025, all vehicles, including electric cars, have to pay road tax. There are some exemptions, including vehicles used by a disabled person and any vehicle that has a statutory off-road notification (SORN).

If you want to find a car that suits your financial situation and comes with low road tax, then you should be looking at cars that were first registered between March 2001 and March 2017. Older cars have a sweet spot when it comes to low road tax. 

Thanks to the CO2 emissions-based tax system used between 2001 and 2017, many of the smaller cars with impressive fuel efficiency from this period qualify for very low annual charges, often just £0 or £20. So, for budget-conscious drivers, considering a used car or an older model with low emissions can help keep your running costs down.