If you’re looking for a car that won’t cost a penny to tax, your options may seem limited. After all, almost every car on the road is now subject to paying VED — with just one category exempt.
If a car emits zero grams of CO2 per kilometer, it’s eligible for free road tax. This rules out petrol- and diesel-powered cars, leaving you with your pick of electric and hydrogen-powered cars.
Read on for the best tax-exempt cars you can buy now.
- Tesla Model 3
- VW ID3
- Porsche Taycan
- Skoda Enyaq
- Kia e-Niro
- Peugeot e-208
- Vauxhall Corsa-e
- Ford Mustang Mach-e
- Mercedes EQC
- Hyundai Kona Electric
Do note that from April 2025 electric cars will have to pay the flat £165 rate of road tax. This will apply to all EVs first registered from April 2017. Electric cars first registered from April 2025 will also have to pay the £355 ‘expensive car supplement’ that applies to cars costing £40,000 or more. This runs from years two to six of a car’s life.
Tesla Model 3
Driving a Tesla Model 3 can feel a little more like hopping into a UFO at first. With an interior practically devoid of buttons, Tesla’s minimalist cabin feels refreshingly different.
That’s backed up by cutting-edge technology, such as Tesla’s ‘Autopilot’ driver-assistance systems. Long Range cars come with up to 360 miles of range – more than enough for the daily commute, then. Oh, and you can buy one through carwow now…
Volkswagen ID3
If you’re looking for a practical yet efficient hatchback for your tax-exempt purchase, the Volkswagen ID3 is worth a look.
It’s about the size of a Golf but is more spacious inside (thanks to clever packing of its electric system) and comes loaded with kit — including a super-sharp 10-inch infotainment system. Versions with the largest battery come with 336 miles of claimed range, too.
Porsche Taycan
Want something cheap to tax but ultra-cool? The Porsche Taycan is one of the most coveted cars to hit the market in the last few years, and for good reason.
This all-electric saloon is seriously fast, is great to drive and comes loaded to the brim with technology. It doesn’t quite match other EVs in its class for range, topping out at 301 miles, but it does support 270kW rapid charging for quick battery top-ups.
