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 September 2026 · Source: IRS — Credits for new clean vehicles (not allowed for vehicles acquired after Sept. 30, 2025)

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

$0

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

The federal clean vehicle credits are over for 2026 purchases. Under the One Big Beautiful Bill Act, the credit of up to $7,500 for a new electric vehicle (IRC 30D) and the credit of up to $4,000 for a used one (IRC 25E) are not allowed for any vehicle acquired after September 30, 2025, so this page shows a federal credit of $0 and has nothing to enter.

A vehicle counts as acquired when a written binding contract is signed and a payment is made. A buyer who did both on or before September 30, 2025 can still claim the credit when they take possession, even if that happens in 2026; the old tests then apply as before (for a new vehicle, an MSRP cap of $80,000 for vans, SUVs and pickups or $55,000 for other vehicles, and modified AGI under $300,000 joint, $225,000 head of household or $150,000 for others), and this page does not check them.

What the page lists instead is the deduction for interest on a loan for a new vehicle whose final assembly took place in the United States: up to $10,000 a year for tax years 2025 through 2028, open to itemizers and non-itemizers alike, and phased out for modified AGI above $100,000 ($200,000 for joint filers). State EV incentives are separate and are not covered here.

Example: A New EV Bought in 2026

  1. 1 A couple filing jointly signs the contract for a new electric SUV in March 2026: price $65,000, modified AGI $280,000.
  2. 2 The SUV was acquired after September 30, 2025, so its federal clean vehicle credit is $0. Under the old rules it would have passed the $80,000 SUV price cap and the $300,000 joint income limit, but those tests no longer matter for a 2026 contract.
  3. 3 If they finance it and the SUV's final assembly was in the United States, the loan interest may count toward the car loan interest deduction, but at $280,000 they are well above the $200,000 point where that deduction starts to phase out for joint filers, so they may keep little or none of it.

Source: IRS — Credits for new clean vehicles (not allowed for vehicles acquired after Sept. 30, 2025) · Last updated: September 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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