How much is the EV tax credit in 2026?

Up to $7,500 for new EVs ($3,750 for battery components + $3,750 for critical minerals) and up to $4,000 for used EVs.

What is the income limit for the EV tax credit?

For new EVs: $150,000 AGI (single), $300,000 (married filing jointly), $225,000 (head of household). For used EVs: $75,000 (single), $150,000 (MFJ), $112,500 (HoH).

What is the MSRP cap for the EV tax credit?

$55,000 for sedans and $80,000 for SUVs, trucks, and vans for new EVs. $25,000 for used EVs.

Can I get the EV tax credit for a used electric vehicle?

Yes, up to $4,000 for used EVs that are 2+ model years old and priced under $25,000, if your AGI is under $75,000 (single) or $150,000 (MFJ). Must be purchased from a licensed dealer.

Can the EV tax credit be applied at point of sale?

Yes. Starting 2024, buyers can transfer the credit to the dealer at the point of sale, effectively reducing the purchase price immediately rather than waiting to claim it on your tax return.

EV Tax Credit Calculator

Check eligibility, credit amount, and compare new vs used EV savings

Check your eligibility for the federal EV tax credit

Vehicle type

Vehicle categoryDetermines MSRP cap

Vehicle MSRP

Manufacturer suggested retail price

Your adjusted gross income

Current or prior year AGI, whichever is lower

Filing status

—

How to Use This Calculator

Tab “Am I Eligible?”

Select whether you are buying a new or used EV, enter the vehicle MSRP (or purchase price for used), your adjusted gross income, and filing status. The calculator instantly checks your eligibility against 2026 IRA rules — MSRP caps, AGI limits — and tells you YES or NO with the specific reason and credit amount.

Tab “Credit Amount”

For new EVs, the $7,500 credit is split into two $3,750 components: battery manufacturing (North America) and critical minerals (US/FTA countries). Select whether your vehicle qualifies for each component to see your actual credit. For used EVs, the credit is the lesser of $4,000 or 30% of the sale price.

Tab “New vs Used”

Enter the price of a new EV and a used EV you are considering. See a side-by-side comparison of your out-of-pocket cost after credits. The calculator shows the dollar and percentage savings of choosing used over new, accounting for the different credit amounts ($7,500 max new vs $4,000 max used).

2026 EV Tax Credit Rules

New EV Credit (IRC Section 30D):
Up to $7,500 = $3,750 (battery) + $3,750 (critical minerals)

MSRP Caps (New):
Sedans / Hatchbacks: $55,000
SUVs / Trucks / Vans: $80,000

AGI Limits (New):
Single: $150,000 | MFJ: $300,000 | HoH: $225,000

Used EV Credit (IRC Section 25E):
Lesser of $4,000 or 30% of sale price
Max purchase price: $25,000
Vehicle must be 2+ model years old, purchased from a dealer

AGI Limits (Used):
Single: $75,000 | MFJ: $150,000 | HoH: $112,500

Point-of-Sale Transfer: Credit can be applied at time of purchase (transferred to dealer) rather than claimed on your tax return.

The Inflation Reduction Act (IRA) of 2022 restructured the EV tax credit with new sourcing requirements. Not all EVs qualify for the full $7,500 — the credit depends on where the battery components and critical minerals are sourced. Starting 2025, vehicles with components from a Foreign Entity of Concern (FEOC) lose eligibility for the relevant credit portion.

Example

Sarah — Buying a New EV Sedan, $48,000 MSRP, Single, $120K AGI

Vehicle typeNew EV (Sedan)

MSRP$48,000

MSRP cap (sedans)$55,000 — PASS

Buyer AGI$120,000

AGI limit (single)$150,000 — PASS

Battery component credit$3,750

Critical minerals credit$3,750

Total federal credit$7,500

Effective price after credit$40,500

Sarah qualifies for the full $7,500 credit because her MSRP is under $55,000 and her AGI is under $150,000. She can transfer the credit to the dealer at purchase, paying only $40,500 out of pocket (assuming the vehicle meets both battery and minerals sourcing requirements).

Used EV Example

Marcus — Buying a Used EV, $18,000, MFJ, $110K AGI

Vehicle typeUsed EV

Purchase price$18,000

Price cap$25,000 — PASS

Buyer AGI$110,000

AGI limit (MFJ)$150,000 — PASS

Credit (lesser of $4K or 30%)$4,000

Effective price after credit$14,000

Marcus qualifies for the full $4,000 used EV credit. Since 30% of $18,000 is $5,400 (exceeds $4,000), the credit is capped at $4,000. If the used EV were priced at $10,000, the credit would be $3,000 (30% of $10,000).

Frequently Asked Questions

Which vehicles qualify for the full $7,500 credit in 2026?▼

The full $7,500 credit requires meeting both the battery component requirement ($3,750) and the critical minerals requirement ($3,750). The IRS maintains an official list of qualifying vehicles at fueleconomy.gov. Key factors: final assembly must be in North America, a percentage of battery components must be manufactured in North America (60% in 2026), and a percentage of critical minerals must be sourced from the US or FTA countries (50% in 2026). Vehicles with components from a Foreign Entity of Concern (FEOC) lose eligibility for the relevant credit portion.

Can I claim the EV tax credit if I lease?▼

When you lease an EV, the tax credit goes to the leasing company (the legal owner), not to you directly. However, many leasing companies pass the credit through as a lower monthly payment or reduced capitalized cost. The advantage of leasing: the commercial clean vehicle credit (Section 45W) used by leasing companies has no MSRP cap and no buyer income limit, so vehicles that do not qualify for the consumer credit may still benefit through a lease.

What does “point-of-sale transfer” mean?▼

Starting in 2024, you can transfer your EV tax credit to the dealer at the time of purchase. Instead of waiting to claim the credit on your tax return (potentially months later), the dealer reduces your purchase price by the credit amount immediately. The dealer then claims the credit from the IRS. This makes the credit function like a rebate rather than a tax refund. You will need to provide your SSN and attest to meeting the income requirements at the dealership.

What if my tax liability is less than $7,500?▼

The EV tax credit is nonrefundable, meaning it can reduce your tax liability to $0 but you will not receive the excess as a refund. If your federal tax liability is $5,000 and you qualify for a $7,500 credit, you save $5,000 (the remaining $2,500 is lost). However, if you use the point-of-sale transfer option, the full credit amount is applied at the dealership regardless of your tax liability — making it the preferred option for lower-income buyers.

Can I claim both new and used EV credits?▼

Yes, the new EV credit (Section 30D) and used EV credit (Section 25E) are separate credits. If you purchase a new EV and a used EV in the same tax year, you can claim both credits (assuming you meet eligibility requirements for each). The used EV credit can only be claimed once every 3 years per taxpayer, and once per vehicle ever.

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