EV Tax Credit Calculator

The EV Tax Credit Calculator determines which electric vehicle purchase incentives apply in your state based on vehicle price, income, and current programme eligibility.

The Federal Credit Is Gone: What Changed in September 2025

The federal EV tax credit under IRC Section 30D — the $7,500 credit that shaped EV purchasing decisions for over a decade — expired on September 30, 2025. The Section 25E used clean vehicle credit ($4,000) expired on the same date. Vehicles purchased or delivered after that date do not qualify for any federal EV tax credit, regardless of when the purchase agreement was signed.

This represents the single largest shift in EV purchase economics since the IRA expanded the credits in 2022. A buyer who purchased a qualifying $45,000 EV in August 2025 could reduce the effective price to $37,500 with the federal credit alone. The same vehicle purchased in October 2025 costs $45,000 — full price.

With the federal credit gone, the EV incentive landscape is now entirely state-driven. The variation between states is enormous: a New Jersey buyer can save over $5,800, while a buyer in Texas, Florida, or Arizona receives nothing. This calculator reflects the post-September 2025 reality, showing only currently active programmes. For a broader analysis of how the credit expiration affects your purchase timeline, the break-even calculator models payback periods with and without incentives.

State-by-State EV Incentive Comparison

The table below summarises active state-level EV purchase incentives as of April 2026. These programmes change frequently — check your state's programme website for the most current details before relying on any specific figure in a purchase decision.

State	Programme Name	Maximum Amount	Key Eligibility Rules	Vehicle Price Cap
Colorado	State EV Tax Credit	$750 base; +$2,500 if MSRP < $35,000	New EVs; additional credit income-limited	None for base; $35,000 for bonus
New Jersey	Charge Up NJ + Sales Tax Exemption	Up to $4,000 rebate + 6.625% sales tax waived	Income-qualified; new ZEVs only	$45,000 MSRP
New York	Drive Clean Rebate	Up to $2,000	New vehicles; applied at point of sale	$42,000 MSRP
Oregon	Clean Vehicle Rebate	$2,500–$7,500 (income-based tiers)	Income thresholds; new and used eligible	$50,000 MSRP
Massachusetts	MOR-EV	Up to $3,500	New and used EVs; battery ≥ 25 kWh	$55,000 MSRP
Washington	Sales Tax Exemption	Up to ~$4,050 (varies by price)	New EVs; exemption on first $45,000	$45,000 eligible amount
California	Clean Cars 4 All	Varies by air district ($4,000–$9,500)	Income-qualified only; must scrap old vehicle	Varies by programme
Texas	—	$0	No active state EV purchase incentive	—
Florida	—	$0	No active state EV purchase incentive	—
Arizona	—	$0	No active state EV purchase incentive	—

Three patterns emerge from this data. First, the most generous programmes are concentrated in states that already have strong EV adoption. Second, most programmes include income qualifications or MSRP caps that exclude luxury EVs and higher earners. Third, some of the largest EV markets by volume (Texas, Florida) offer no state-level purchase incentive, meaning buyers pay full price with no offset. For context on how these incentives affect ongoing costs, you can compare fuel costs between the EV and its gasoline equivalent for your region.

What Each State Programme Actually Covers

The headline dollar amounts in the table above do not tell the full story. Each programme has specific mechanics that affect how much a buyer actually receives.

Colorado's two-tier structure offers a $750 base credit to all new EV buyers regardless of income. An additional $2,500 is available for vehicles priced under $35,000, which effectively targets budget-friendly models like the Chevrolet Equinox EV (base trim), Nissan Leaf, and some ID.4 configurations. Most mid-range and premium EVs qualify only for the $750 base amount.

New Jersey's combined incentive is among the strongest in the nation. The Charge Up NJ rebate provides up to $4,000 as a direct point-of-sale reduction, and the ZEV sales tax exemption waives the state's 6.625% sales tax. On a $27,800 vehicle, the tax exemption alone saves $1,842, bringing the combined benefit to $5,842 — a 21% effective discount.

New York's Drive Clean Rebate provides up to $2,000 at the point of sale. The cap of $42,000 MSRP excludes many popular crossover EVs that have crept above that threshold in recent model years.

Oregon's income-tiered approach offers the widest range — $2,500 for buyers at higher income levels up to $7,500 for lower-income households. The programme covers both new and used EVs and has a $50,000 MSRP cap.

Massachusetts MOR-EV provides up to $3,500 for new EVs with at least 25 kWh of battery capacity. The $55,000 MSRP cap is more generous than most states, allowing mid-range SUVs to qualify.

Washington's sales tax exemption effectively functions as a percentage-based incentive. On a $45,000 vehicle with the state's combined sales tax rate (which can exceed 10% in some localities), the savings can exceed $4,000.

California's Clean Cars 4 All differs from the others because it is not a universal buyer incentive. The programme is income-qualified and requires scrapping an older, high-polluting vehicle. For buyers who do not qualify, California has no general-population EV purchase incentive.

For buyers in states without incentives, the total cost of ownership comparison shows how fuel and maintenance savings compensate over time, even without upfront credits.

How the Federal Credit Worked (Historical Reference)

Understanding the expired federal credit provides context for current discussions about potential future legislation and helps buyers who may have a qualifying 2025 purchase to claim on their tax return.

Section 30D provided up to $7,500 for new clean vehicles, split into two $3,750 components: one for meeting critical mineral sourcing requirements and one for battery component manufacturing requirements. The credit was available as a point-of-sale rebate starting in January 2024. MSRP caps were $55,000 for sedans and $80,000 for SUVs/trucks. Income limits applied: $150,000 AGI for single filers, $300,000 for joint filers.

Section 25E provided up to $4,000 for used clean vehicles (model year at least two years older than the purchase year), with a $25,000 price cap and lower income thresholds. Both credits expired when the authorising legislation sunset on September 30, 2025. Whether future federal EV incentives will be enacted remains uncertain. Buyers should make purchase decisions based on currently available incentives. Understanding the current landscape also helps when evaluating whether leasing or buying makes more sense in a post-federal-credit environment.

Worked Example: Colorado Buyer With $750 State Credit

A Colorado household earning $100,000 annually purchases a new Tesla Model Y Long Range ($44,990) in April 2026.

Federal credit: $0 (expired September 30, 2025). Colorado state credit: $750 base amount. The Model Y's MSRP exceeds the $35,000 threshold for the additional $2,500 bonus, so only the base credit applies. Total incentives: $750. Effective purchase price: $44,990 − $750 = $44,240. Credit as a percentage of MSRP: $750 ÷ $44,990 × 100 = 1.7%.

The contrast with 2024 is stark. A buyer of the same vehicle in mid-2024 could stack the $7,500 federal credit with Colorado's then-larger state credit, reducing the effective price by $12,000 or more. This shift makes ongoing fuel savings a proportionally larger factor in the purchase justification.

Worked Example: New Jersey Buyer With $4,000 Rebate Plus Sales Tax Exemption

A New Jersey resident earning $75,000 purchases a new Chevrolet Bolt EUV ($27,800).

Federal credit: $0 (expired). Charge Up NJ rebate: $4,000 (vehicle MSRP under $45,000 cap, buyer income-qualified). NJ ZEV sales tax exemption: $27,800 × 6.625% = $1,841.75, rounded to $1,842 saved. Total incentives: $4,000 + $1,842 = $5,842. Effective purchase price: $27,800 − $5,842 = $21,958. Credit as a percentage of MSRP: $5,842 ÷ $27,800 × 100 = 21.0%.

At $21,958 after incentives, the Bolt EUV is priced below many mid-trim gasoline hatchbacks. The combined state rebate and sales tax exemption represent a 21% effective discount — the most generous incentive package available in any US state for a vehicle in this price range. The comprehensive EV cost comparison guide shows how incentives of this size can shift the break-even point from five years to under two.

Section 30D

Section 30D refers to the section of the Internal Revenue Code that governed the federal clean vehicle tax credit. Enacted as part of the Energy Policy Act of 2005 and significantly modified by the Inflation Reduction Act of 2022, it provided up to $7,500 for qualifying new electric vehicles. The credit amount depended on meeting two sets of sourcing requirements for battery minerals and components. Section 30D expired on September 30, 2025, and no replacement has been enacted as of April 2026.

Point-of-Sale Rebate

A point-of-sale rebate is an incentive applied at the time of purchase, reducing the transaction price immediately rather than requiring the buyer to claim the amount on a future tax return. Several state programmes — including New Jersey's Charge Up NJ and New York's Drive Clean Rebate — use a point-of-sale structure, meaning the buyer sees the reduced price on the purchase paperwork. This is distinct from a tax credit, which reduces your tax liability when you file your annual return and may result in a smaller benefit if your tax liability is below the credit amount.

The incentive landscape will continue to evolve. Municipal and utility-level incentives (not covered in this calculator) may offer additional savings — some electric utilities provide $500–$1,000 rebates for customers who purchase an EV and install a home charger. For a complete picture of how any available incentives affect your EV purchase economics, use this calculator alongside the EV versus gasoline cost comparison and the total ownership cost estimator.