How much is the federal EV tax credit in 2026?

The federal Clean Vehicle Credit offers up to $7,500 for new qualifying electric vehicles purchased in 2026. Used EVs qualify for up to $4,000 (30% of purchase price). Commercial EVs can receive $7,500 or more depending on vehicle weight.

What are the income limits for the EV tax credit?

For new EVs, the modified adjusted gross income limit is $150,000 for single filers, $225,000 for head of household, and $300,000 for joint filers. For used EVs, limits are $75,000 (single), $112,500 (head of household), and $150,000 (joint).

What is the MSRP limit for the EV tax credit?

New cars must have an MSRP under $55,000. SUVs, vans, and pickup trucks must be under $80,000. Used EVs must be priced under $25,000. There are no MSRP limits for commercial vehicles.

Updated for 2026

Federal EV Tax Credits Guide

Federal incentives can significantly reduce the cost of purchasing an electric vehicle. Here is a breakdown of the tax credits available in 2026 under the Inflation Reduction Act.

The Inflation Reduction Act (IRA) provides three categories of federal tax credits for electric vehicles purchased in 2026: the Clean Vehicle Credit for new EVs (up to $7,500), the Used Clean Vehicle Credit (up to $4,000), and the Commercial Clean Vehicle Credit ($7,500 or more for businesses). These credits apply at the point of sale as a direct price reduction at participating dealers.

Eligibility depends on buyer income, vehicle price, and whether the vehicle meets domestic manufacturing requirements. Use our state-by-state charging station directory to find charging infrastructure near you before making your purchase decision.

Clean Vehicle Credit

Up to $7,500

For new qualifying electric vehicles. Applied as a direct price reduction at participating dealers.

Requirements

Income: $150k single / $300k joint
MSRP: $55k cars / $80k SUVs & trucks
Must meet domestic assembly requirements

Used EV Credit

Up to $4,000

30% of purchase price (max $4,000) for qualifying used electric vehicles.

Requirements

Income: $75k single / $150k joint
Vehicle price under $25,000
Must be at least 2 model years old
Purchased from a licensed dealer

Commercial Credit

$7,500+

For businesses purchasing EVs for commercial use.

Details

Up to $7,500 for vehicles under 14,000 lbs
Up to $40,000 for larger commercial vehicles
No income limits for business purchases

How Do I Claim the Federal EV Tax Credit?

Starting in 2024, eligible buyers can transfer the credit to the dealer at the point of sale, reducing the purchase price immediately rather than waiting to file taxes. To claim the credit, ensure the vehicle appears on the IRS list of qualifying vehicles, confirm the dealer participates in the transfer program, and provide your tax information at purchase.

Tax credit availability depends on vehicle eligibility, manufacturing requirements, and individual tax circumstances. This page provides general information only and does not constitute tax advice. Consult a tax professional for guidance specific to your situation.

View official IRS guidelines | Check vehicle eligibility on FuelEconomy.gov

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