Road tax — officially called Vehicle Excise Duty (VED) — is one of those ongoing costs of car ownership that's easy to overlook when buying. It's one of several hidden costs of buying a used car worth considering before you commit. But the difference between the cheapest and most expensive bands can be hundreds of pounds a year, and over the life of ownership, it adds up significantly.
Here's how car tax works in the UK and which vehicles pay the least.
How car tax is calculated
The amount you pay depends on when your car was first registered and what type of fuel it uses. There are two main systems:
Cars registered before 1 April 2017
These use a banding system based purely on CO2 emissions. There are 13 bands (A to M), with Band A being the cheapest (zero emissions) and Band M the most expensive (over 255 g/km CO2). Many of these older low-emission cars pay nothing at all in road tax.
Cars registered on or after 1 April 2017
These use a different structure:
- First year rate — Based on CO2 emissions at registration. Zero-emission vehicles pay nothing; the highest emitters pay over £2,000 in the first year alone.
- Standard rate — From the second year onwards, most vehicles pay a flat standard rate regardless of emissions. For 2025/26, this is £190 per year for petrol and diesel cars.
- Expensive car supplement — Vehicles with a list price over £40,000 when new pay an additional supplement of £410 per year for five years (years 2 through 6), on top of the standard rate.
You can check what any vehicle currently pays by looking up its registration on our free tax checker.
Which cars pay zero road tax?
Several categories of vehicle pay nothing:
Electric vehicles
Fully electric vehicles registered before 1 April 2025 pay zero VED. This includes popular models like the Tesla Model 3, Nissan Leaf, MG4, and Volkswagen ID.3. Note that from April 2025, new EVs will start paying the standard rate, though existing zero-rated EVs keep their exemption until their tax class changes.
Pre-2017 low-emission petrols
Cars registered before April 2017 that emit 100 g/km CO2 or less fall into Band A and pay nothing. This includes many small petrol cars from that era:
- Toyota Aygo (pre-2017)
- Citroen C1 (pre-2017)
- Peugeot 108 (pre-2017)
- Suzuki Celerio
- Fiat 500 (selected engines)
- Skoda Citigo
- Volkswagen Up
These are some of the cheapest cars to run overall — low insurance, low fuel consumption, and zero road tax.
Historic vehicles
Vehicles manufactured before 1 January 1977 are exempt from VED entirely. If you own a classic car from this era, you won't pay a penny in road tax, regardless of its emissions.
Cheapest cars to tax (post-2017)
For cars registered after April 2017, the first year rate varies but the standard rate is flat. The cheapest option is a zero-emission vehicle (electric or hydrogen), which pays nothing in the first year.
After that, all non-zero-emission cars pay the same £190 standard rate — whether you drive a 1.0-litre city car or a 5.0-litre V8. The only variable is the expensive car supplement for vehicles that listed over £40,000 new. For the complete rate tables, see our 2026 car tax rates guide.
This means if you're buying a post-2017 car and want the cheapest ongoing tax, your options are:
- Electric vehicle — Zero VED (at least until April 2025 rules phase in)
- Any car with a list price under £40,000 — £190/year standard rate, no supplement
- Avoid high-emission cars in their first year — The first year rate can be over £2,000 for the highest emitters
How to check what you'll pay
The easiest way to find out what a specific vehicle pays in road tax is to look it up by registration number. Our tax check tool shows the current tax status, and you can see the vehicle's fuel type, CO2 emissions, and registration date — all the information you need to work out the VED band.
If you're buying a used car and want to factor in running costs, checking the tax before you commit is a smart move. A car that looks like a bargain on the sticker price might be less appealing once you add £600+ per year in road tax.
Six-month and monthly payment options
You don't have to pay for the full year up front. The DVLA offers three payment options:
- Annual — One payment for 12 months. This is the cheapest option overall.
- Six-monthly — Two payments per year. This costs slightly more than annual (roughly 10% extra over the year).
- Monthly by direct debit — Twelve monthly payments. This is the most expensive option (roughly 5% more than annual) but spreads the cost.
If you're on a tight budget, monthly payments can make higher tax bands more manageable, but you'll pay a premium for the convenience.
Tips for keeping car tax costs down
- Check before you buy. Use our free car check to see the vehicle's emissions and registration date before committing. This tells you exactly which tax band it falls into.
- Consider pre-2017 low-emission cars. If you're buying a budget runaround, a pre-2017 Band A car costs nothing in road tax — ever.
- Watch the £40,000 threshold. If a post-2017 car listed above £40,000 new, you'll pay the expensive car supplement even if you buy it second-hand for much less. Check the original list price, not the used price.
- Go electric if it works for you. EVs currently pay zero VED and offer the lowest running costs overall. Even with the upcoming changes, they'll remain among the cheapest to tax. Our guide to electric car road tax in 2026 explains what EV owners will pay going forward.
- Don't forget to check mileage history when buying used — a car with unusually low mileage might have been SORN'd for periods, which could indicate issues.
The bottom line
For the absolute cheapest car tax, electric vehicles and pre-2017 Band A cars can't be beaten — both pay nothing. For post-2017 petrol and diesel cars, the standard rate is flat at £190/year, so the main thing to watch for is the expensive car supplement on vehicles that listed over £40,000.
A quick tax check before you buy tells you exactly what you'll pay. It takes 30 seconds and could save you from an unwelcome surprise when you come to tax the vehicle.