Cheapest Cars to Tax in the UK

We all know that having a car comes with many unwanted expenses.

These include fuel and/or charging (if you own a hybrid or electric vehicle), insurance, MOT, servicing, and for the instance of this article, car tax.

Any car that is on or off road in the UK must be taxed.

This just adds another expense for motorists, so it’s not a bad idea searching for the cheapest cars to tax so you can save as much money as possible before committing to a new vehicle.

Please note that Vehicle Excise Duty (VED) tax brackets are broken down into different band categories, ranging from A-M (A cheapest, M most expensive).

The cars listed on this article today are models registered between March 2001 and April 2017, also falling under band B or C (£25 and £35 annual rate respectively).

As of right now, there are models such as EVs and hybrid cars that full under band A for car tax, with these vehicles not requiring a tax payment.

Cheap Cars to Tax:

1. Hyundai i10

2. Citroen C1

3. Ford Fiesta

4. BMW 2 Series

5. Nissan Qashqai

6. Volkswagen up!

7. Ford Focus

8. Skoda Fabia

1. Hyundai i10

The Hyundai i10 is a small city car that constantly helps drivers save money on tax and fuel.

Older models (registered before April 1, 2017) of the i10 are as little as £20 in annual road tax.

Paired with effective fuel efficiency, the Hyundai hatchback is a real money saver, not just in the tax bracket.

2. Citroen C1

Similar to the i10, the Citroen C1 is a small city car that offers savings on expenses for Citroen customers.

Tax expenses for some old C1 models are £20 due to the low emission output of the vehicle models.

Being a nimble city car that is both safe and fun to drive, the C1 is great for a fun option to save money on car tax.

3. Ford Fiesta

Another old trusty car that is featured here is the Ford Fiesta, a hatchback that was manufactured by Ford from 1976 to 2023.

A £35 car tax for older Fiesta models (featuring Ford’s 1.0-litre EcoBoost engine) covers a reasonable expense to drive this vehicle.

Given the Fiesta has been so popular for UK motorists throughout its lifespan, the hatchback is a top choice if you’re looking to save on road tax.

4. BMW 2 Series

Now for the luxury pick of the bunch, that being the BMW 2 Series.

A coupe that has gained increasing popularity in recent times, the 2 Series is an incredibly cheap £20 to tax on UK roads if you opt for a 220d model.

Considering its low emissions output, the BMW 2 Series is a very fun car to drive and comes with very low tax expense.

5. Nissan Qashqai

The Nissan Qashqai one of the most popular vehicles in the UK for good reason – it offers practicality, solid performance, and is affordable to own.

A real versatile SUV that holds low running costs, the Qashqai costs as low as £20 per year if you go for certain models that were registered before 2017.

Nissan are known for their reliable model line-up, with their famous Qashqai standing tall amongst many of its SUV competitors for affordability and performance.

6. Volkswagen up!

Volkswagen are famous for their manufacturing capabilities, with their fun-sized Up being a practical and fun car to drive.

It’s not just a good car to drive, it’s also low on car tax with it only costing £0-20 per year (depending on year of release and/or model variant).

If you want to save money on tax whilst maintaining high performance, the VW Up GTI is amongst the cheapest to tax amongst the Up models.

7. Ford Focus

Another affordable Ford model to tax, their famous Focus is a reliable hatchback car that’s been on UK roads since 1998.

This family car is a great car to drive, but is also cheap to tax with pre-2017 models falling under the B tax band bracket of £20.

So not only is this family hatchback a fun and reliable drive, it’s also a cheap car to tax that arrives with low running costs due to an efficient fuel economy.

8. Skoda Fabia

Skoda are known for the production of fuel efficient vehicles, with their Fabia being one of their top MPG models.

Not only is the Fabia cheap to run, it’s also cheap to tax, with certain models registered before April 2017 being just £20.

If you’re looking for a hatchback car that has slim expenses, the Fabia may just be the vehicle for you, with a range of fuel efficient models that are cheap to tax.

Final Thoughts

These pre-2017 models are some of the cheapest cars to tax on the market, offering a low CO2 emissions output compared to many of their competitors.

The reason why low emitting pre-2017 models are prioritised for being cheap to tax is that vehicles that were registered after April 2017 being much more expensive to tax.

For more information on these tax brackets for cars in the UK, explore RAC’s car tax band guide today.