Tesla Tax Credits

Federal EV Tax Credit ($7,500)

The Inflation Reduction Act provides up to $7,500 in federal tax credits for new electric vehicles. In 2026, this credit can be applied at the point of sale as an instant discount on your purchase price -- you no longer need to wait until tax filing to receive the benefit.

Eligible Tesla Models: Model 3 (all trims), Model Y (all trims), and Cybertruck qualify for the full $7,500 credit. Model S and Model X exceed the $80,000 MSRP cap for sedans/SUVs and are not eligible for the federal credit.

Income Limits: Single filers must have adjusted gross income (AGI) under $150,000. Joint filers must have AGI under $300,000. Head of household filers must have AGI under $225,000. You can use either the current year or prior year income to qualify.

Tesla Model Eligibility

Top State Incentives

Many states offer additional rebates and incentives that stack on top of the federal credit. California offers up to $7,500 through CVRP for income-qualified buyers. Colorado provides a $5,000 state tax credit. New York offers up to $2,000 through the Drive Clean Rebate.

Other notable state incentives include Oregon ($2,500), Massachusetts ($3,500), New Jersey (sales tax exemption worth $3,000+), and Connecticut ($2,250). Check your state's energy or transportation department website for current programs and eligibility requirements.