When looking for ways to reduce the ongoing costs of owning a car, one often overlooked factor is the road tax. Vehicle Excise Duty (VED), or road tax, is mandatory for all cars that are driven or stored on public roads in the UK.

However, not all cars have the same tax requirements, and many models offer a significantly lower tax rate. This article explores some of the best options for cars with low road tax in 2025.

Why Do Some Cars Have Low Road Tax?

The cost of road tax in the UK is primarily determined by a vehicle's emissions. Cars with higher emissions are taxed more heavily, while those that produce little or no emissions are eligible for reduced or even free road tax. Electric vehicles (EVs), for example, have been exempt from road tax until April 2025, as they produce no emissions while driving. Other vehicles that benefit from reduced road tax include historic cars, vehicles designed for disabled drivers, and agricultural vehicles.

Top Cars With Low Road Tax

There are several cars on the market that stand out due to their low road tax rates. Whether you're looking for a practical hatchback, a stylish SUV, or a luxury car, there are plenty of options to help keep your road tax costs down.

Nissan Qashqai

The Nissan Qashqai is a popular choice among families, offering practicality and reliability without breaking the bank on road tax. Models from 2021 onwards are taxed at the standard £190 per year. Older versions, particularly those from before 2017, can cost as little as £20 per year for road tax. With a spacious interior and a large boot, the Qashqai is an excellent all-rounder for those who need a dependable car for daily use.

Skoda Fabia

The Skoda Fabia is another excellent choice for low road tax, with newer models costing around £190 annually. Older models can cost as little as £20 per year. Known for its practicality, the Fabia is a great option for those looking for a compact car that is easy to drive and maintain. Its fuel efficiency is another plus, with diesel versions achieving up to 60mpg in real-world driving conditions.

BMW 2 Series

If you're after a luxury car but want to keep running costs low, the BMW 2 Series could be a great option. Even the sporty 220i M Sport, which delivers an impressive 181 horsepower and accelerates from 0 to 62 mph in just seven seconds, can be taxed for only £190 per year. However, cars with a list price over £40,000 are subject to an additional luxury tax of £410 per year for the first five years, so be mindful of the vehicle's price when considering this option.

Ford Fiesta

A staple on UK roads, the Ford Fiesta is known for its reliability and low running costs. For models from 2017 onwards, road tax is typically £190 per year. Its fuel efficiency is also impressive, with some versions achieving up to 56.5mpg. With its popularity, parts are widely available, and maintenance costs are typically low, making it an economical choice for everyday drivers.

Hyundai i10

The Hyundai i10 is a compact and efficient city car that's perfect for those looking to save on road tax. Models from 2017 onwards are taxed at £190 per year, but earlier models can be taxed for as little as £20 annually. The i10 is known for its fun driving experience and excellent fuel economy, offering up to 53.3mpg in real-world driving. Its lower stance and wide body make it a standout option for those seeking a small yet practical car.

Kia Sportage

If you're looking for an SUV with low road tax, the Kia Sportage is a solid choice. Models from 2022 onwards are taxed at £190 annually. The Sportage offers a high-quality build, making it a great option for families. Its fuel efficiency is also good, with some variants offering up to 53.3mpg. There are also plug-in hybrid versions available, which can help further reduce fuel costs.

Ford Focus

The Ford Focus is a classic and reliable family car that offers great value for money when it comes to road tax. Most models are taxed at £190 per year, with some pre-2017 models costing just £20 annually. The Focus is also known for its fuel efficiency, with some versions achieving up to 57.6mpg, making it a great option for those looking to save on running costs.

Mercedes GLA

The Mercedes GLA is a luxury SUV that surprisingly comes with low road tax. For standard models from 2020 onwards, road tax is typically £190 per year. While luxury models may be subject to higher road tax, the GLA still offers good fuel efficiency, with petrol versions achieving up to 42.8mpg and diesel variants reaching up to 53.3mpg.

Audi A3

Another luxury option with low road tax is the Audi A3. Whether you choose the hatchback, saloon, or convertible version, the A3 is a stylish and elegant vehicle that remains affordable when it comes to road tax. Models from 2020 onwards are typically taxed at £190 per year. However, high-performance variants like the Audi RS3 or S3 can attract higher tax rates, so it's best to opt for standard models if you want to keep costs down.

Renault Zoe

For those looking for an electric car, the Renault Zoe is a fantastic option. As an electric vehicle, it is exempt from road tax until April 2025 due to its zero emissions. The Zoe is ideal for short commutes, offering a range of up to 250 miles on a single charge. With its small size and easy-to-drive nature, it's a practical and environmentally friendly choice.

Finding a car with low road tax can help reduce the ongoing costs of ownership. Whether you're looking for a compact city car, a reliable family vehicle, or even a luxury SUV, there are many options available to suit your needs. From electric vehicles like the Renault Zoe to popular models like the Ford Fiesta and Nissan Qashqai, choosing a car with low road tax is an effective way to save money while enjoying a practical and enjoyable driving experience.