EV Tax Credit Calculator 2026

2026

Check eligibility for the $7,500 new or $4,000 used EV tax credit with MSRP and income limits.

By Konstantin Iakovlev · Updated April 2026 · Source: IRS — Forms, Instructions & Publications

EV Tax Credit Eliminated

The federal EV tax credit (up to $7,500 for new vehicles and $4,000 for used vehicles under IRC 30D) was eliminated effective September 30, 2025 by the One Big Beautiful Bill Act (OBBBA). The credit is no longer available for vehicles purchased or placed in service after that date.

EV Tax Credit

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What Replaced the EV Credit

New Auto Loan Interest DeductionUp to $10,000/year
Eligible VehiclesAmerican-made vehicles (assembled in the U.S.)
Deduction TypeAbove-the-line deduction on auto loan interest
Applies ToNew vehicle purchases financed with an auto loan
EV Credit (30D)Eliminated after Sept 30, 2025
Used EV Credit (25E)Eliminated after Sept 30, 2025

New Auto Loan Interest Deduction

  • The OBBBA introduced a new above-the-line deduction for auto loan interest on American-made vehicles.
  • Taxpayers can deduct up to $10,000 per year in interest paid on qualifying auto loans.
  • The vehicle must be assembled in the United States to qualify.
  • This benefit applies regardless of whether the vehicle is gas, hybrid, or electric.

Use the EV Tax Credit Calculator 2026 above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Buyers weighing an electric vehicle in 2026 face a layered set of rules that decide whether the $7,500 new-EV credit or the $4,000 used-EV credit is actually within reach. The qualifying tests turn on price, income, and the vehicle itself, and the income thresholds shift with inflation each year. This tool runs your situation against those rules so you can see where you stand before you sign anything.

Eligibility is checked in stages. A new EV must first carry an MSRP under the 2026 caps, $80,000 for vans, SUVs, and pickups and $55,000 for everything else, after which your Modified Adjusted Gross Income (MAGI) is measured against the 2026 limits of $300,000 for joint filers, $225,000 for heads of household, and $150,000 for all others. A used EV is tested the same way: its sale price must come in under $25,000, your MAGI must stay below $150,000 for joint filers, $112,500 for heads of household, and $75,000 for others, and no earlier owner can have claimed the credit on that vehicle.

Battery sourcing rules are the detail buyers most often miss, and they shift often enough that a model qualifying for the full $7,500 one year may not the next, so confirm a specific model's compliance for the exact year you buy. The credit is also non-refundable: it can bring your tax liability down to zero, but any amount beyond that is not paid out as a refund.

Example: New 2026 EV Purchase for a Joint Filing Couple

  1. 1 Step 1: Input a new EV with an MSRP of $65,000. The vehicle is a compact SUV. The joint filing couple's Modified Adjusted Gross Income (MAGI) is $280,000.
  2. 2 Step 2: The calculator first checks the MSRP: $65,000 is less than the $80,000 SUV limit. Next, it verifies the MAGI: $280,000 is less than the $300,000 joint filer limit. Assuming the vehicle also meets battery and final assembly requirements.
  3. 3 Step 3: Both the vehicle price and the household income criteria are met for the new EV credit.
  4. 4 Step 4: The eligible tax credit is $7,500. This amount can directly reduce the couple's federal tax liability, providing significant savings on their new electric vehicle purchase.

Source: IRS — Forms, Instructions & Publications · Last updated: April 2026

Frequently Asked Questions

How much is the EV tax credit for 2026?
The federal EV purchase credit ($7,500 new / $4,000 used) was eliminated after September 30, 2025 under the One Big Beautiful Bill Act, so there is no federal EV tax credit for vehicles purchased in 2026. Through that date, the new-vehicle credit was split into $3,750 for battery-component requirements and $3,750 for critical-mineral requirements. Some states still offer their own EV incentives, so check the programs available where you live.
What are the income limits for the EV tax credit?
These limits applied while the credit was active (through September 30, 2025) and no longer affect 2026 purchases, since the federal credit has been eliminated. For new EVs, modified AGI had to be under $150,000 (single), $225,000 (head of household), or $300,000 (married filing jointly); for used EVs, the limits were $75,000, $112,500, and $150,000 respectively.
Can I get the EV tax credit as a point-of-sale discount?
Through September 30, 2025, dealers could apply the credit as a discount at the time of purchase — you transferred the credit to the dealer and received the benefit immediately instead of waiting to file your return. Because the federal credit ended after that date, point-of-sale transfers no longer apply to 2026 purchases.

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