10 best cars with low road tax

Taxing your car can be an expensive business, but this doesn’t have to be the case. Check out this top 10 list of the cheapest cars to tax.

But first, what factors affect a vehicle’s tax rate? Well, it mainly comes down to emissions. The more CO2 your car pollutes (worked out in grams per kilometre, you’ll see this as g/km) the higher your tax bill will be.

If the list price of your car is above £40,000, you’ll pay an extra £335 per year for the first five years of ownership. For this reason, this list only includes cars under this threshold.

Electric cars which emit 0 g/km of CO2 are exempt from paying any road tax, however, we’re going to focus on petrol, diesel and hybrid cars which have the lowest tax rates.

Here’s our pick of the best cars with low road tax:

1. Skoda Octavia vRS iV
2. Renault Captur e-Tech
3. Volvo XC40 Recharge
4. Mercedes A250e
5. Toyota Yaris Hybrid
6. Toyota Prius Plug-in
7. Audi A3 Hybrid
8. Cupra Formentor
9. Volkswagen Golf eHybrid
10. Citroen C5 Aircross

Skoda Octavia vRS iV

• Emissions: 26 g/km
• Fuel: Petrol plug-in hybrid
• First-year tax rate: £0
• Following yearly tax rate: £145
• List price from: £37,290*

The Skoda Octavia vRS is the car that does it all. It’s fast, practical, comfortable and cheap to run, especially in plug-in hybrid guise. This model will cover around 40 miles on electric power alone and it won’t cost you a penny in tax for the first year.

Renault Captur e-Tech

• Emissions: 30 g/km
• Fuel: Petrol Plug-in hybrid
• First-year tax rate: £0
• Following yearly tax rate: £145
• List price from: £25,710*

If you’re after a practical family runaround with a good-sized boot and a raised driving position, you could do a lot worse than the Renault Captur. Go for the e-Tech plug-in hybrid and you’ll pay no road tax for the first year, and it’ll be very fuel-efficient as well.

Volvo XC40

• Emissions: 47 g/km
• Fuel: Petrol plug-in hybrid
• First-year tax rate: £0
• Following yearly tax rate: £145
• List price from: £39,100*

Funky styling, a comfortable ride and loads of clever storage solutions. That’s what you get as standard with the Volvo XC40, along with plenty of tech and safety equipment. You can have the plug-in hybrid with either 211hp in the T4 or 262hp in the T5, and they’ll both do nearly 30 miles on a charge.

Bear in mind though that only the base Core model comes in below £40,000, so any other model will cost more to tax.

Mercedes A250e

• Emissions: 23 g/km
• Fuel: Petrol plug-in hybrid
• First-year tax rate: £0
• Following yearly tax rate: £145
• List price from: £36,395*

The Mercedes A-Class is the perfect car if you want a family hatchback but you fancy something that feels a bit more upmarket than a Volkswagen Golf. It looks smart both inside and out, and the A250e hybrid will do almost 40 miles on electric power alone.

Toyota Yaris Hybrid

• Emissions: 98 g/km
• Fuel: Petrol hybrid
• First-year tax rate: £130
• Following yearly tax rate: £145
• List price from: £20,820*

You don’t have to pay a fortune to get a car with a low tax rate, as the Toyota Yaris proves. You get plenty of equipment as standard, an efficient hybrid engine and decent practicality for a supermini. The emissions are a bit too high to get free tax for the first year, but you’ll still only pay £130 for the first 12 months.

Toyota Prius plug-in

• Emissions: 28 g/km
• Fuel: Petrol plug-in hybrid
• First-year tax rate: £0
• Following yearly tax rate: £145
• List price from: £33,300*

The Toyota Prius is the car that pushed hybrid technology into the mainstream when it was introduced, and it continues to be an easy-to-drive, efficient option for families. You’ll get Toyota reliability, as well as 34-miles of electric range and low tax rates with this practical plug-in hybrid model.

Audi A3 hybrid

• Emissions: 26 g/km
• Fuel: Petrol plug-in hybrid
• First-year tax rate: £0
• Following yearly tax rate: £145
• List price from: £34,765*

The Audi A3 is a striking looking hatchback with a classy interior and plenty of tech on board. Being an Audi, you can rest assured that it’ll be well screwed together with lots of quality materials. Go for the 1.4-litre plug-in hybrid and it’ll be cheap to run as well.

Cupra Formentor eHybrid

• Emissions: 33 g/km
• Fuel: Petrol plug-in hybrid
• First-year tax rate: £0
• Following yearly tax rate: £145
• List price from: £36,795*

A fast, stylish SUV doesn’t have to come with a high tax bill, which is proven by the Cupra Formentor. The 1.4 plug-in hybrid gets a stylish and well-made interior, a great driving experience and 245hp for you to play with – as well as low running costs.

Volkswagen Golf eHybrid

• Emissions: 21 g/km
• Fuel: Petrol plug-in hybrid
• First-year tax rate: £0
• Following yearly tax rate: £145
• List price from: £34,275*

It’s the only car you will ever need. That’s the short review of the Volkswagen Golf. It’s well made, packed with tech, practical and comfortable. Go for the eHybrid and you get a 1.4-litre petrol engine, paired with an electric motor that makes 204hp and returns impressive fuel economy.

Citroen C5 Aircross

• Emissions: 32 g/km
• Fuel: Petrol plug-in hybrid
• First-year tax rate: £0
• Following yearly tax rate: £145
• List price from: £34,420*

Want one of the most comfortable family cars on the market? Then check out the Citroen C5 Aircross. It also has funky styling, loads of kit and a big boot. If you go for the plug-in hybrid, you’ll get 226hp and 30 miles of electric range; plenty for the daily commute.

Have you considered a tax-free electric car?

If you make the switch to a pure electric car, you won’t pay any yearly tax. This is because they don’t emit any CO2, and there are more benefits than this to owning an EV.

You get a near-silent, relaxing drive and lower running costs, and EVs are better for the environment as well. Tap the button below for our top 10 tax-free electric cars.

Buy your next car (and sell your old one) through carwow

Are you looking for a great deal on your next car? Head over to the carwow configurator. Just tell us which car you want, and our trusted dealers will come back to you with their best offers.

You can also now sell your car through carwow, and it’s just as simple as buying your new car. Just upload some photos, answer a few questions and dealers will offer you great prices for your car. You can even opt to have it collected as well.

*Prices correct at the time of writing.