These are the best and cheapest cars to tax in 2025

Owning a car is becoming increasingly expensive but choosing a model with low road tax can be a way to keep costs down.

Road tax, or vehicle excise duty (VED) is a legal requirement that affects millions of drivers. Vehicles in the UK are taxed through the amount of emissions pumped out of their exhausts and are put into different tax bands depending on the pollution.

Vehicles registered between March 1, 2001, and March 30, 2017, could qualify for free road tax if they produced less than 100g/km of CO2. But, from April 1 2017 the change in VED meant new models that would have been exempt would now have to pay the standard £195 rate.

As of April 1, 2025, the rules have changed again. Electric cars will now have to pay the standard £195 rate, due to their increase in popularity and vehicles producing less than 100g/km of CO2 registered between 2001 to 2017 will now have to pay up to £35 a year.

This means there are still plenty of cars out there that are very cheap to tax despite the latest changes.

These cars are great to drive, look good and come with ultra-low running costs that will make them affordable and easy to live with.

We’ve compiled a list of the best and cheapest cars to tax in the UK today.

If you’re looking for a cheap, reliable and economical hatchback that will cost nothing to run, then look no further at the Toyota Aygo.

It comes with an efficient 1.0-litre three-cylinder petrol engine that can achieve up to 74mpg. It’s also fun to drive, features lots of different personalisation options and can be chosen with three or five-doors.

Models up until April 2017 qualify for just £20 a year road tax, making them very cheap to run and because it’s a Toyota, it shouldn’t cause you any problems.

Hyundai’s baby i10 is one of the best city cars that you can buy. It looks good, has solid build quality and there is a lot of standard equipment.

All models come with five-doors as standard and higher spec cars are loaded with goodies such as heated seats and a heated steering wheel.

If you go for the SE Blue model, versions before April 2017 will set you back just £20 a year in tax, whereas the 1.2-litre four-cylinder petrol engine costs £35 a year.

It’s built in Britain and is one of the nation’s favourite cars, with its high seating position, attractive styling and low running costs.

If you look at models before April 2017, the diesel options fitted with the 1.5-litre or 1.6-litre unit will only set you back £20 or £35 a year in vehicle tax.

The beloved Ford Fiesta is also one of Britain’s favourite cars, and it’s easy to see why.

A well setup chassis, fine handling and a sporty exterior design with affordable running costs means there’s a Fiesta to suit everyone.

The seventh-generation car that ran from 2008 to 2017 is one of the best iterations of the model and it comes with cheap to tax petrol and diesel engines.

Models from 2012 to 2015 with the 1.25-litre petrol engine will cost £35, while the 1.4-litre, 1.5-litre and 1.6-litre diesel variants registered before April 2017 will set you back £20 a year in tax.

The Golf is the benchmark when it comes to family hatchbacks and the seventh-generation car that ran from 2012 to 2020 is by far one of the best.

It’s practical, economical and has exceptional build quality, giving the whole car a premium feel and with a wide range of engines available, running costs are low as well.

Engines such as the 1.0-litre turbo petrol and 1.6-litre diesel will cost £20 a year in tax for models registered before April 2017, and versions with the 1.4-litre turbo petrol and 2.0-litre turbocharged diesel will cost £35.

If you want a sporty looking coupe that comes with ultra-low running costs, then the Honda CR-Z is worth a mention.

It’s powered by a clever hybrid powertrain that features a fuel-saving stop and start system with a lithium-ion battery pack to make it smooth and refined when driving around town.

But, the CR-Z comes with a twist, as its standard six-speed manual gearbox means that it’s been set up for those who enjoy driving and the funky interior design has aged very nicely.

In terms of road tax, all models will cost you £35 a year, making it one of the cheapest coupes to run.

The Toyota iQ is one of the most cleverly-packaged small cars in history, with its four-seater configuration and measures at just 3.3-metres in length.

To drive, the car is eager and energetic and it has one of the best turning circles of any car.

There’s lots of standard equipment such as air conditioning, nine airbags and alloy wheels, plus, there are two frugal petrol engines on offer.

If you choose a 1.0-litre three-cylinder example, it will cost you just £20 a year in tax, while the more refined and sophisticated 1.33-litre four-cylinder will cost £35 a year in tax.