The federal electric vehicle tax credit is worth up to $7,500, but only a handful of buyers actually receive the full amount. The credit disappears the moment your car's MSRP crosses a price cap, your income exceeds the MAGI limit, or the vehicle was not finally assembled in North America. This EV tax credit calculator checks all three gates at once and tells you whether the credit applies to your purchase, how large it is, and what kind of credit you are actually getting.
Adjust the inputs and the result card updates instantly. You will see the MSRP cap that applies to your vehicle type, the MAGI limit for your filing status, the federal credit amount, the total incentives stacked on top, and the effective price after everything is applied.
How to Use
- Choose your Vehicle Type. Pick car for sedans and hatchbacks, which carry the tighter $55,000 MSRP cap. Pick truck for pickups, vans and SUVs, which get the roomier $80,000 cap.
- Enter the Manufacturer Suggested Retail Price (MSRP). Use the base MSRP on the window sticker, not the negotiated out-the-door price including taxes and fees.
- Type your Modified Adjusted Gross Income (MAGI) from your most recent tax return. This is the income test that trips up more buyers than the price test.
- Select your Filing Status. The income limit rises from $150,000 for single filers to $225,000 for head of household and $300,000 for joint filers.
- Set Final Assembly in North America to yes or no. If you are not sure, look the exact VIN up on Fueleconomy.gov before you buy.
- Optionally enter any State Rebate, Local / City Rebate, and Utility Rebate you expect to receive. Most programs stack with the federal credit.
- Read the result card: the Federal EV Tax Credit line shows $7,500 or $0, the Total Incentives line adds up federal plus all stacked rebates, and the Effective Price subtracts everything from the MSRP.
The credit is nonrefundable in tax-law terms, but since 2024 you can transfer it to the dealer at the point of sale and apply it straight to your down payment. That means you do not need $7,500 of tax liability waiting on your April return to use it.
How the $7,500 Credit Is Built
Under Internal Revenue Code Section 30D, a new clean vehicle can earn up to $7,500. That number is the combination of two separate $3,750 pieces:
- $3,750 for critical minerals extracted or processed in the United States or in a country with a free-trade agreement.
- $3,750 for battery components manufactured or assembled in North America.
In practice, most shoppers should plan around the full $7,500, because the eligibility list on Fueleconomy.gov flags which models earn the full amount versus only half. The model here applies the three consumer-facing gates everyone can check at home: the price cap, the income cap, and the North America assembly requirement.
The price (MSRP) cap works like this: any car priced above $55,000, or any truck, van or SUV priced above $80,000, earns no credit at all. There is no partial credit for landing at $56,000 instead of $55,001 — you are either under the cap or over it.
The income (MAGI) cap uses the lower of your income in the year you take delivery or the prior year. Single filers must be at or under $150,000, heads of household at or under $225,000, and married couples filing jointly at or under $300,000. If your income fluctuates between years, you can choose the year that helps you qualify.
The assembly gate is the easiest to verify: Fueleconomy.gov publishes the final assembly location for every eligible VIN. If the truck was finished in Mexico or the US, it passes; if it was finished overseas, the credit is gone regardless of price or income.
Stacking State, Local and Utility Rebates
The federal IRC 30D credit is rarely the only dollar on the table. Most U.S. states, many electric utilities, and some local governments offer their own EV rebates, and the federal credit is designed to stack on top of them. The calculator models this directly:
- Total incentives
totalRebate = creditAmount + stateRebate + localRebate + utilityRebate - Effective price
effectivePrice = MSRP − totalRebate
All amounts are rounded to the nearest dollar (two decimal places for cents), so the result card never shows a long floating-point tail. A small number of programs (for example, a few California state incentives) are mutually exclusive with the federal credit rather than stackable; when that applies, leave the state-rebate box at $0 and only count the federal $7,500.
Examples
Example 1 — A qualifying compact car. A single teacher earning $100,000 MAGI buys a $45,000 electric hatchback that was finally assembled in the United States. The MSRP ($45,000) is under the $55,000 car cap, the income ($100,000) is under the $150,000 limit, and assembly passes. With no other rebates entered, the federal credit is $7,500, total incentives $7,500, and the effective price $37,500 ($45,000 − $7,500). The buyer transfers the credit to the dealer to cut the down payment.
Example 2 — Just over the price cap. A single filer earning $90,000 falls for a $56,000 electric sedan. The income and assembly tests both pass, but the MSRP exceeds the $55,000 car cap by $1,000. The calculator returns $0 federal credit, total incentives $0, and an effective price of $56,000 (the full MSRP). Waiting for a $53,000 trim of the same model flips the result back to $7,500.
Example 3 — A large SUV that clears the higher cap. A married couple filing jointly with $180,000 MAGI buys a $75,000 electric SUV assembled in North America. Because the vehicle type is truck, the cap is $80,000, and $75,000 is comfortably under it; joint filers also have headroom under the $300,000 limit. The result is the full $7,500 federal credit, effective price $67,500.
Example 4 — A luxury EV priced at $1,200,000. An ultra-luxury electric car with a $1,200,000 MSRP is nowhere near the $55,000 car cap. The calculator returns $0 federal credit and an effective price of $1,200,000, illustrating that the price cap is a hard ceiling even for buyers with modest incomes.
Example 5 — Stacking state, local and utility rebates. A single filer with $100,000 MAGI buys a $40,000 electric car assembled in North America. Their state offers a $2,000 rebate, their city adds $1,000, and their electric utility gives $500. The federal gates all pass, so creditAmount = $7,500. The calculator adds everything up: totalRebate = 7,500 + 2,000 + 1,000 + 500 = $11,000, and effectivePrice = 40,000 − 11,000 = $29,000.
FAQ
How much is the federal EV tax credit?
The maximum new clean vehicle tax credit is $7,500. It is split into two $3,750 pieces, one for critical-mineral sourcing and one for North American battery components. Some models qualify for only $3,750 if they satisfy just one of the two supply-chain tests. This calculator models the consumer gates (price, income, assembly) around that $7,500 ceiling.
What is the MSRP cap for the EV tax credit?
Cars, sedans and hatchbacks must have an MSRP at or below $55,000. Trucks, vans and sport utility vehicles must have an MSRP at or below $80,000. If the price is even one dollar over the cap, the entire credit is disallowed. Use the base MSRP on the window sticker, not taxes, title, or the negotiated price.
What income do I need to qualify?
Your modified adjusted gross income must be at or below $150,000 for single filers, $225,000 for head of household, and $300,000 for married filing jointly. You may use either your income for the year you take delivery or the prior year, whichever is lower, which helps buyers whose income swings year to year.
Is the EV tax credit refundable?
The credit itself is nonrefundable, meaning it normally offsets your federal tax bill dollar for dollar rather than being paid out in cash. However, starting in 2024 buyers may transfer the credit to an authorized dealer at the point of sale, effectively applying up to $7,500 toward the down payment or purchase price without waiting for a tax return.
Does the car have to be assembled in North America?
Yes. The vehicle must have its final assembly in the United States, Canada, or Mexico. You can verify the exact build location for any VIN on Fueleconomy.gov. If final assembly occurred overseas, the credit is not available regardless of the price or your income.
Does a used electric car qualify?
Used and leased vehicles follow different rules. This calculator models the new clean vehicle credit under Section 30D, which tops out at $7,500. The separate Section 25E used clean vehicle credit is capped at $4,000 and has lower price and income thresholds, so it needs its own calculation.
Disclaimer
This EV tax credit calculator is provided for informational purposes only and does not constitute tax, legal, or financial advice. Eligibility rules, MSRP caps, MAGI limits, and the list of qualifying vehicles change frequently and are set by the IRS and the U.S. Department of Energy. Estimates reflect the inputs you enter and the simplified Section 30D gates modeled here; they do not account for the critical-mineral and battery-component percentages for a specific VIN. Always confirm a vehicle's eligibility on Fueleconomy.gov and review your situation with a qualified tax professional before purchasing.