The current automotive landscape is a tough one for manufacturers. See, now more than ever, they have to make just about every model in their lineup good at just about everything a customer could want. Their offering need to be stylish, economical, safe, spacious, easy to use and, unfortunately not so often anymore, fun to drive too.Automakers sometimes dial down some of those design briefs to focus on one or the other and often compromise in the process. As a result, many models end up being jacks of all trades but masters of none. The Toyota GR Corolla is a real outlier in that respect: in layman’s terms, it’s a three-cylinder four-door hatchback that branched off a family tree known for cheap, reliable transportation. Corolla drivers of the past didn’t worry about speed, performance, handling, or power.This particular version, though, flips that recipe on its head by pursuing driving engagement over all else. Can it accomplish that without watering down what makes the Corolla a desirable car in the first place? To find out, we went to Sonoma Raceway in California to test it both on and off the track. In fact, we took it out onto a rally course. We even tested it against itself from previous years to see if Toyota really has made this hot hatch worth buying brand new in 2026, or if a used example makes more sense. Today, we’ll break down our findings from how the new GR Corolla drives to how it’s changed and how those two things go hand in hand. We’ll discuss interior improvements, higher prices, and then give you our verdict on whether or not this is the hot hatch to buy in what is a small but competitive market. StylingEarlier this year, it seemed like Toyota might launch an all-new generation of the GR Corolla. That didn’t end up being the case, so styling is largely the same as it was last year. The boxy front grille and sharp headlight design from 2025 return, as do the big fender flares over each wheel and tire. There are only two trims for 2026 (for now, at least). The Core (base) version gets a body-colored spoiler at the tail of the roof. The Premium Plus trim adds a carbon fiber roof. Both get three exhaust tips sticking out at the back and a hood bulge with functional vents. It’s a very attractive package that clearly separates it from the rest of the Corolla lineup. Interior If there’s something to complain about in the GR Corolla, it’s probably the cabin. It’s spacious and easy to navigate, but it doesn’t feel as special as it probably should, given the price point. That said, there are a few touches that help it stand out from the rest of its family. Standard across the trims for 2026 are Brin Naub suede-trimmed sport seats. Those who go for the Premium Plus trim get red stitching and a heads-up display. The seating position is comfortable and capacious. The seats are supportive and grippy without feeling overly aggressive. In fact, they could probably be just a touch more aggressive, and I’d personally be fine with it. The rear seats offer just enough room for a taller person like me to hang out back there though I wouldn’t want to be there for a long road trip. Read: Toyota Improves 2026 GR Corolla With A Clever TrickThat said, most folks will find them more than satisfactory. The same upholstery from the front buckets is the same in the rear, and there are power outlets and climate vents as well. Then, behind the second row is a genuinely useful cargo space. Buyers get 17.8 cubic feet to play with, which is less than some competitors, but that’s because the battery lifts the load floor up higher than it would be in a normal Corolla. Need more space? Drop the seats. It’s that simple. As far as switchgear and infotainment go, the GR Corolla is all business. The infotainment system is relatively small at just 8 inches. The bezels are huge, but the switches, buttons, and knobs all do what you want them to without being overly fussy. Below that, you’ll find a dial to change torque split and a switch to change drive modes. A 12.3-inch driver information display stares back at the pilot with clear, crisp graphics. Six speakers are available, but Premium Plus buyers get eight. Toyota Safety Sense 3.0 is standard and includes things like adaptive cruise control, lane-tracing assist, and road-sign assist. Drive Impressions If you know me, then you know that I really liked the GR Corolla when it first launched. Coming into this trip, I wondered if the enjoyment I felt in that first car would be tamped down this time around. Tracks like Sonoma can sometimes bring out issues with a car’s balance and performance that flat courses like the one where we tested this car in Utah simply can’t. I’m happy to say that not only do I still like the GR Corolla, but I’m sure it’s better than ever. For 2026, Toyota added a new duct to keep the engine cool during longer stints on the track. It also added 45.6 ft of structural adhesive to the frame. These are small changes but they add up with what the GR Corolla received last year and the year before. Those improvements included larger ground contacts, upgraded bolts for a more connected feeling from the pavement to the steering and chassis, modified trailing arms for better grip, and air flow optimization for improved stability. As a whole, they make the 2026 GR Corolla faster, more reliable, and more intuitive from behind the wheel. Toyota actually started us out in a 2023 example before graduating us to the 2024 edition, and then into the 2026 car. It was very clear from one iteration to the next that the engineering evolution over time has improved this little car. Under full throttle, the engine is quick to respond and sounds great in the process. The manual gearbox feels easy to place, even under the stress of coming into the second-to-last corner at Sonoma at triple-digit speeds, while the car shifts its weight from right to left. It’s so composed that pushing it harder and harder comes naturally, and it never once felt like it was near the limit. Unlike any other car in this class, GR Corolla owners can dial in the amount of power they want at the rear wheels. Under normal conditions, the split is 60 percent front and 40 percent rear. Drivers can flip that and make it 30:70, though, or just put the car in Track Mode and let it sort things out. There’s even a Gravel Mode that keeps torque split at 50:50. The auto-rev-matching feature works great, too, when you’re refamiliarizing yourself with a course and want to turn the heel-toe part of your brain off. The brakes were easy to modulate and never seemed to fade throughout the day despite continuous lapping from around 10 a.m. until around 3 p.m. Importantly, we should note that the experience included driving from the end of the pit to the last corner at full throttle before taking a brief brake, sometimes only a few seconds, between laps. Cars also came off the track for refueling and every once and a while, a brief safety check to ensure everything was still in good order. Despite that rigorous testing protocol, the cars just keep lapping as if it were no big thing. In fact, the example that I drove from the hotel to the race track spent the entire day lapping before I drove it back in the afternoon without any issues. Speaking of that on-road experience, it’s quite good. On one truly atrocious road, the ride was a bit unsettling. Beyond that, I might as well have been in any other Corolla. It was comfortable, quiet, and engaging without feeling like I was being penalized for driving something with some soul in its DNA. Then there’s the X factor that few seem to really highlight about the GR Corolla. It’s a rally monster. This little hot hatch is probably more fun in the dirt than it already is on the track. It’s intuitive, rowdy, and unflinching in the face of dirt, gravel, and even a bit of mud. This is the only time I tested the automatic version of the car, and it’s perfectly lovely. I’d buy the stick, but at least the very few folks who physically can’t manage a manual have an option now. Let me take a moment to circle back to my mention earlier of wishing the seats were a touch more aggressive. The GR Corolla can sustain such high speeds both on track and on dirt that a bit more lateral support would be excellent. That said, it’s not as if it needs them to be an absolute blast. Ride Along ImpressionsIf you thought I liked the GR Corolla before riding shotgun in it, you won’t be shocked to learn that I like it even more after seeing what a professional can do with it. Toyota professional drift driver Ryan Teurek took me for a spin around Sonoma’s impromptu rally circuit, the same one that I drove, and boy, did he impress. Not only are his skills several levels above my own, but he truly showcased just how capable the GR Corolla is. We’re not talking about a simple gravel Gymkhana parking lot. The gravel course at Sonoma has all of the same elevation changes, off-camber turns, blind corners, blind crests, and aspects of the road course there. Teurek ate them up behind the wheel of this everyday grocery-getting street car that gets 24 mpg combined. He pulled off multiple hairpin handbrake turns on both gravel and pavement, and this little car just ate it up lap after lap. I was there late in the afternoon and was subject to a quick safety check. It took about 30 seconds, everything was good to go, and Ryan just kept going. Enjoy the video of my lap out with him above. CompetitionThe field of hot hatchbacks is pretty small, so we’ll widen it out a bit to consider anything even close to this realm. For example, the Honda Civic Type-R is often crowned as the best of this bunch. It’s refined, probably is the best-driving front-wheel drive car in the world, and is genuinely very fast on track. It’s proven to be faster than the GR Corolla in that setting time and time again. The Hyundai Elantra N has also beaten the GR Corolla on track and has its own niche following. Then there are cars like the Volkswagen Golf R and the Subaru WRX. All four lack things that the GR Corolla has going for it. Let’s break them down one by one. The Hyundai is less expensive but lacks the sharp front-wheel drive prowess of the Honda. It’s also not available with a manual gearbox. Read: Honda’s New Coupe Uses Type R Parts Without Saying A WordThe Honda, for its part, is available with a stick, and, as stated, is outstanding dynamically, but it starts at over $47,000. Both suffer from one huge drawback, though, when put up against the GR Corolla. They’re only available with front wheel drive. Sure, as mentioned, they can beat the Toyota on track (at least they could… that might not be the case in 2026), but when the road gets rough or disappears altogether, they’ll be eating GR Corolla dust. What about AWD cars like the Volkswagen and Subaru? Firstly, the Volkswagen is only available with an automatic gearbox, and it starts at over $48,000. It is quicker than the GR Corolla and has a nicer interior, but you’re going to pay for it, and frankly, I’m not sure how great the Golf R would be on the same rally course. The GR Corolla feels more consistent at the limit, too. As for the Subaru, it’s not really a fair competition. While Toyota has been dialing in the GR Corolla over the last few years, Subaru seems asleep at the wheel. You can opt for a WRX to the moon, pay nearly $50,000, and have a less engaging, slower, less practical car, and less fun than you would in the Toyota. In fact, Toyota just showed Subaru what it should’ve done ten years ago. Build a WRX… not at STI… with this kind of power and attitude. Final Thoughts Cheap, fast, and reliable… You can only pick two. That’s the saying that haunts so many performance car lovers because it’s almost universally true. Maybe there’s a glitch in the matrix, though, because the 2026 Toyota GR Corolla might be the exception to the rule. Don’t get us wrong. The $39,160 starting price isn’t truly what we’d call cheap, but it’s also not exactly expensive. In August, the average transaction price of a new car in America was over $49,000. In that light, the GR Corolla is well below the average, but what about those two other qualities? It’s tough to say just yet how reliable Toyota’s turbocharged G16E-GTS 1.6-liter three-cylinder engine is over the course of a decade or two. It’s only been around for a few years, but early reports are very positive overall. There are some examples of catastrophic failure, but owner abuse is a potential cause in most of those examples. Like any performance engine, rigorous maintenance and conservative use will prolong its life. Finally, when it comes to speed, there isn’t really a question. This four-door hatchback is blisteringly quick for its size, weight, and powertrain. No, it won’t beat every single other rival in every possible competition, but it wins where it counts: fun factor. On top of that, it’s practical, reasonably economical considering that it’s a dialed-down rally car, and better than ever before. This was what we called the king of hot hatches back in 2023. Guess what… the king still reigns.