The 2026 Volkswagen Taos is the fifth model year of the carmaker’s smallest sport utility vehicle. It’s also part of the carmaker’s crowd of five SUV offerings and it’s wedged in a competitive segment.

Among rivals, the Buick Encore, Chevrolet Trax, Honda HR-V, Hyundai Kona, Nissan Kick, Subaru Crosstrek and Toyota Corolla Cross all have merit.

So why buy a top-line Taos for about $39,000?

Available in S, SE, SE Black and SEL trims, the Taos family is equipped with a 1.5-liter turbocharged four-cylinder engine with 174 horsepower and an eight-speed automatic transmission.

Volkswagen’s all-wheel drive, 4Motion, helps with the vehicle’s road traction. It’s standard on the reviewed SEL model and a $1,700 option on other trims.

The system also not-so-subtly reduces the SUV’s gas mileage averages to 25 miles per gallon in city driving, 33 mpg on the highway. It’s a low tally considering competitors’ efforts.

The engine’s inefficiencies comprise the start of what’s not quite right with the little VW.

Until it reaches highway speeds, the Taos always sounds and reacts as if it’s out of shape. Its 0 to 60 miles per hour performance is about eight seconds.

It shouldn’t matter, but driving patterns are seemingly overly aggressive or at least more assertive. The Taos easily got left behind or doesn’t have the punch to maneuver quickly.

For 2025, the Taos was appreciably updated — more horsepower and improved interior and exterior styling. Minor changes in 2026 include standard rear seat pretensioners and an enhanced seatbelt reminder and a better quality and faster charging pad. The reviewed top-line SEL also now features an eight-speaker premium VW audio system.

As the highest-priced trim level, the SEL model has a strong array of comfort features and safety equipment.
Safety features are included in the IQ.Drive collection. It features: Automatic emergency braking, adaptive cruise control with stop-and-go capability, lane keeping, blind-spot monitoring, rear cross-traffic monitoring and travel assist hands-free driving assistant.

Ambient lighting, heated and ventilated front seats, power driver’s seat, leather seating upholstery and a panoramic sunroof are higher trim-level features.

Despite its lackluster acceleration, the Taos has a spirited driving personality. It has a tight touring radius and it’s comfortable. True to its designation as a sub-compact SUV, parking, even in tight quarters, is impressive.

Cargo space is adequate. Two 2x2x8 pieces of lumber for a recent yard project fit length-wise, but extended to the edge of the dashboard. With a class-leading 27.9 cubic feet of cargo space, there’s sufficient room for a half-dozen grocery bags or perhaps three soft-sided carry-on suitcases.

The rear seats have a center pass-through and the usual 60/40 split. They fold down mostly flat, leaving about a two-inch level change from the cargo floor.

All Taos models feature an 8.0-inch infotainment touchscreen with Apple CarPlay and Android Auto. The base driver display is also an 8.0-inch screen that’s upgradeable to a 10.3-inch model. Two USB ports and a 12-volt outlet are standard with the base model.

Like many other vehicles, the Taos was named after a city. In this instance, it’s the mountain town in New Mexico. A massive SUV like the GMC Denali is named appropriately after Mt. McKinley’s official name.

But Taos is perched at nearly 7,000 feet, and it has its share of rugged roads and trails. Performance and off-road capability are not the little SUV’s best traits. Those areas are likely less impressive for the vehicle in the thin air of its namesake town.