The 2006 lineup of Toyota's compact sedan is unchanged from the previous model year. Throughout the Corolla's history, it has appeared in a variety of forms, but it is now offered only as a sedan.

The CE badge denotes the base Corolla trim. The CE comes equipped with a CD audio system, air conditioning, 15-inch wheels, power mirrors and an outside temperature gauge. Options are bit scarce, but availability increases with the trim level.

Six of the seven 2006 trims are powered by a 1.8-liter DOHC inline four cylinder. This powerplant generates 126 horsepower, and is boosted by Toyota's Variable Valve Timing system. VVT-i also provides improvements to emissions and fuel economy. The automatic transmission CE will reach 30 mpg in city driving and 38 on the highway. The manual Corolla achieves an EPA estimate of 32/41 mpg.