The federal EV tax credit can save you up to $7,500 on a new electric vehicle — but there are significant eligibility restrictions. Here's what you need to know in 2026.
Under the Inflation Reduction Act, buyers of qualifying new electric vehicles can receive a federal tax credit of up to $7,500. For used EVs, the credit is up to $4,000 or 30% of the purchase price, whichever is less.
Not all EVs qualify. To be eligible, the vehicle must:
To claim the full credit, your modified adjusted gross income (MAGI) must be below:
Since 2024, you can transfer the tax credit to the dealer at point of sale, effectively reducing the purchase price by up to $7,500 upfront — you don't have to wait until tax season.
Qualifying vehicles change as battery sourcing rules phase in. Check the IRS website or fueleconomy.gov for the current list. As of 2026, many Tesla, Chevrolet, and Ford EVs qualify, but some models from other manufacturers may not meet domestic content requirements.
Buyers of used EVs (model year 2022 or earlier) can claim up to $4,000 or 30% of the price (whichever is less) if their income is under $75,000 (single) or $150,000 (married). The vehicle must be purchased from a dealer, not privately.
Factor in the tax credit and see your real savings with our EV savings calculator.
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