If you’re looking to save money on car ownership in the UK, choosing from the range of low car tax vehicles can be a smart decision. With rising fuel prices, insurance premiums, and maintenance costs, vehicles with low road tax offer budget-conscious drivers a way to reduce annual expenses.
In this guide, we’ll explore some of the best low car tax vehicles UK drivers can consider in 2025. These cars not only come with low CO₂ emissions but also benefit from cheaper Vehicle Excise Duty (VED) rates. Whether you’re a new driver or simply looking to cut costs, the following models are worth considering.
Vehicles with Low Road Tax in the UK
Fiat 500
The Fiat 500 is a stylish city car that’s also incredibly affordable when it comes to tax. Older models (pre-2017) with 1.2L petrol engines often fall under the £30/year tax band, and some variants are even tax-free due to CO₂ emissions below 100 g/km.
Modern versions still manage to stay around the £160–£180/year range, making it one of the best low tax vehicles UK drivers love.
Kia Picanto
Another excellent option is the Kia Picanto, a compact hatchback known for its fuel efficiency and low running costs. The 1.0L petrol models, especially those registered before 2017, typically fall into low CO₂ emission categories, leading to a £0–£30/year road tax in some cases.
Even newer versions registered after 2017 still benefit from standard rates of around £180/year, keeping costs low for UK drivers.
Skoda Fabia
The Skoda Fabia offers a bit more space while remaining fuel-efficient and cost-effective in terms of taxation. Diesel variants like the 1.4 TDI Greenline are particularly appealing, often qualifying for very low tax brackets, sometimes as little as £20/year.
The petrol variants of the Fabia also manage to stay within affordable VED bands, making it a practical family car among low car tax vehicles UK wide.
Toyota Aygo
A favourite among city dwellers, the Toyota Aygo is one of the UK’s top low tax vehicles. Known for its 1.0L engine and excellent fuel economy, many Aygo models fall under the £0–£20/year tax range, especially those produced before April 2017.
Even newer models offer reasonable tax rates, and their reputation for reliability makes them even more attractive.
Nissan Micra
The Nissan Micra, particularly the 1.2L and 1.0L versions, has long been considered a reliable and affordable vehicle for new drivers. Older Micra models typically fall into low emission bands, qualifying for £30–£110/year in road tax, depending on the specific variant and registration date.
Later models may have slightly higher rates but still remain within budget-friendly VED bands.
Suzuki Swift
The Suzuki Swift is a zippy, compact hatchback that blends performance with affordability. The 1.2L Dualjet engine, available in many pre-2017 models, is known for low emissions, making it eligible for £20–£30/year road tax.
Even newer Swift models with mild-hybrid systems help reduce emissions and maintain competitive road tax rates.
Why Choose Low Tax Vehicles in the UK?
Opting for vehicles with low road tax is a smart way to reduce your overall cost of ownership. Here’s why many UK drivers are searching for low car tax vehicles:
- Lower annual expenses: Save £100–£200 per year
- Fuel efficiency: These cars often have great MPG ratings
- Environmentally friendly: Low emissions help reduce your carbon footprint
- Great for city driving: Most low-tax cars are compact and easy to maneuver
Final Thoughts on Low Tax Vehicles UK
With so many options available in 2025, there’s no shortage of low tax vehicles UK buyers can choose from. Whether you prefer a small city car like the Toyota Aygo or a slightly roomier hatchback like the Skoda Fabia, these cars help you stay within budget and minimize your environmental impact.
Looking for more detailed tax guides? Browse our vehicle-specific posts to explore road tax costs for all popular models in the UK.