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Here are 10 great cars that won't cost much in tax

With so many intricacies to the car tax system, it can be a time-consuming job to work out what cars are cheap to tax, so we’ve done the hard work for you.

Mark Nichol

Words by: Mark Nichol

Eleanor Greaves

Additional words by: Eleanor Greaves

Last updated on 3 August 2026 | 0 min read

Car tax is complicated and occasionally baffling. All tax tends to be that way, right? But broadly, the amount of tax you'll pay with your car depends on a combination of its CO2 emissions, how you're buying it, and how old it is when you do. A company car user, for example, pays 'benefit-in-kind' tax and Vehicle Excise Duty (VED, aka "road tax") every year, whereas a private buyer only pays the latter. Everyone pays an additional 'Expensive Car Supplement' every year if their car's list price is above £50,000. But only for the first five years of the car's life. Sigh. 

We've explained how car tax rules could affect you in this article, but ultimately, because car tax boils down to this combo of CO2 emissions and list price, any electric car (zero emissions) with a list price lower than £50,000 when new will be cheapest to tax. So, to avoid making this list simply a list of the cheapest new electric vehicles (you can find that list here if you like), we've thrown in a few plug-in hybrids (PHEVs), and picked a variety of cars that we like, not necessarily those with the lowest list prices. For those who don't feel ready to go fully electric, PHEVs are the most tax-efficient way to stick with a petrol engine, because their ability to do some zero-emissions electric-only miles leads to very low CO2 emissions overall.
All that said, it's worth mentioning that because electric cars and PHEVs are generally bigger, more complex cars, they tend to be more expensive to buy and run generally, once you account for things like insurance, fuel and depreciation. If you're just looking for the cheapest new cars to buy and run in general, you'll find those here. Anyways, here are some EVs and some PHEVs that we really like, all of which attract low tax...

Dacia Spring EV

The UK’s cheapest electric car (the Citroen Ami isn't really a car, before you email us) does come with compromises. It’s slow, its battery range probably won’t even hit three figures in winter, and its Euro NCAP score is poor. But it is very cheap to buy, run and tax. So it’s here.
Read our review of the Dacia Spring here

Geely EX2

Chinese best-seller, the Geely EX2, has now arrived in the UK and we think this compact all-electric hatchback is worthy of your attention. It offers great value for money, a whole lot of tech and it is surprisingly roomy, too. We particularly like the choice of six pastel paint colours which give the EX2 a bit of added charm – we'll take ours in Aurora Green please! If you can charge at home, it shouldn’t cost you much to run and the larger of the two available batteries, should manage around 200 miles on a full charge. Read our Geely EX2 review here.

Toyota Prius PHEV

Despite becoming shorthand for “eco-conscious car” – or perhaps because of that – the Toyota Prius had an image problem. “Uber, innit.” So when Toyota redesigned it for 2022, they focused on making it…cool, for want of a more cool word. They had in-house racing team Gazoo dial in an exciting driving experience and designed it to look like a proper sports car – all low and with rubbish rear headroom. But because it’s a plug-in hybrid it officially does, like, 400mpg or something ridiculous like that. No chance, obviously, but it’s very cheap to run all the same.
Check out what it’s like to live with a Toyota Prius PHEV here

Citroen e-C4

There’s nothing quite like the Citroen e-C4. It’s sort of the size of a Volkswagen Golf, but it rides a little taller (like an SUV) and it’s much floatier (like an SUV), but without being common as muck (like an SUV). Whatever it is, it’s super comfy and much more interesting than the average electric SUV. Our review of the Citroen e-C4 is right here

Kia EV3

The Kia EV3 is one of the best medium-sized family cars on sale today, electric or otherwise. The styling is wonderful, inside and out – truly modern – but beneath that façade is a car that's very easy to live with. The base models have a 270-mile range, but if you need more you can pay for the 375-mile big battery version. Here’s our review of the Kia EV3

BYD Seal U

If you are not quite ready to make the switch to a fully electric car, BYD has an alternative. The Seal U is a family-sized plug-in hybrid SUV which provides an impressive combination of interior space, generous standard equipment and an easy-going driving experience at highly competitive price. In fact, the BYD Seal U won Best Value New Car 2026 at our Driver’s Choice Awards for its “quality and amount of features”. In addition to its attractive price tag, it’s electric only range of up to 50 miles puts in a favourable band for Benefit In Kind and should be plenty to get to work and back only using electric power. Once you do run out of charge it should still be relatively efficient to run of petrol, too. Check out our BYD Seal U review here.

MG4 EV

Every single MG4 has a list price well below the £50,000 expensive car tax cutoff, which is especially remarkable when you consider one of them is called 'X Power' and has a 0-62mph time of 3.8 seconds. That’s quicker than a Bentley Bentayga Speed. LOL. It may not surprise you to learn that this particular version of the MG4 is hopelessly-but-hilariously overpowered. But if you’re after a low-cost, stylish and spacious EV, the other MG4s are great. Which is why you see so many of them around.
Click here to read our MG4 review

Peugeot 308 PHEV

The Peugeot 308 PHEV is a lovely car. It’s fun to drive, it has one of the most unique interiors in the business, and because the electric motor offers 54 miles of electric-only driving, you could feasibly use it as an electric car if your daily commute is short.
Our Peugeot 308 review is right here

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