Can I get a used EV tax credit?
The federal clean vehicle tax credit (also known as an electric vehicle (EV) tax credit) is a credit for qualified buyers of eligible electric or plug-in hybrid vehicles. For used vehicles, the credit is 30% of the purchase price, up to $4000.
Get a federal used EV tax credit up to $4,000 if both you and the car qualify. See more details about qualifications
How does the used EV tax credit work?
To qualify for the federal used EV tax credit, both the car and the buyer must meet certain qualifications. CarMax can help you understand which of our vehicles may be eligible for a used EV tax credit and will provide both you and the Internal Revenue Service (IRS) with documentation so that you can claim the tax credit when you file your taxes.
To actually receive the credit, you need to file Form 8936 with the IRS with your annual taxes. If you don't file this form, you won't get the tax credit.
CarMax is not currently offering the option to transfer an EV tax credit as a payment at point of sale.
Both you and the electric vehicle need to qualify
To be eligible for the federal used EV tax credit, your modified adjusted gross income must not exceed:
$150,000 for joint returns (or surviving spouse);
$112,000 for heads of households; and
$75,000 for other individuals
You also need to meet other eligibility requirements, including but not limited to:
You must be the user of the vehicle (meaning not just buying to resell)
You must be an individual and not a business
You can’t be the original owner of the vehicle
You can’t be named as a dependent on anyone else’s tax return
You cannot have claimed another used clean vehicle credit in the last three years
For information on these and all other eligibility requirements, please visit the IRS Website.
For a used EV or PHEV to qualify for a Federal Used Clean Vehicle Tax Credit the vehicle must meet certain qualifications, including but not limited to:
Have a sale price of $25,000 or less, which includes all dealer-imposed costs or fees not required by law
Be a model year at least two years earlier than the calendar year when you buy it. (For example, a vehicle purchased in 2023 must be a model year of 2021 or older.)
Have a gross vehicle weight rating (GVWR) of less than 14,000 lbs
Be an eligible battery-electric or plug-in hybrid vehicle with a battery capacity of at least 7 kilowatt hours. Check fueleconomy.gov for qualifying makes and models.
Be purchased for use in the United States
Be purchased from a licensed dealer
Not have already been transferred after August 16, 2022, to a qualified buyer
New EVs have slightly different qualifying rules than used EVs. Whether you're exploring used or new EVs, or both, get more electric vehicle eligibility information at fueleconomy.gov.
Budget-friendly possibilities
If you think driving an electric car is out of reach for your budget, we’ve got good news! It may not be.
Learn more about purchasing an EV
FAQs about EV tax credit
Yes, if you and the vehicle you are purchasing meet the IRS's qualifications, your purchase of that qualified used electric vehicle could enable you to get a federal income tax credit of either $4,000 or 30% of the price of the vehicle, whichever is less.
The Treasury Department has specified vehicle eligibility requirements, including that the vehicle's sales price must not exceed $25,000. The sales price includes all dealer-imposed costs or fees not required by law. It doesn't include costs or fees required by law, such as taxes and registration fees. MaxCare and GAP are not included in the sale price.
Other qualifications, including annual income limitations, also apply to the vehicle purchaser. For information on these and all other eligibility requirements, please visit the IRS Website.
Note: CarMax is not currently offering the option to transfer an EV tax credit as a down payment. CarMax is registered with the IRS to submit qualifying vehicle purchases in the IRS Clean Energy portal, enabling qualified customers to claim the tax credit on their taxes for the year. CarMax cannot provide tax advice. Consider consulting an accountant or tax attorney with questions about this tax credit.
There are several types of charging available for your electric vehicle:
- Level 1 charging at home (standard home wall outlet): a common 120V power outlet provides about 3-5 miles of range per hour charged. A good practice of many BEV and PHEV owners is to charge overnight, where you can achieve a 30-mile range in 6-8 hours, so you don’t start your day with an empty battery.
- Level 2 charging at home (upgraded home wall outlet + charging box): a conventional 240V power outlet—like one your washing machine uses—provides power at a faster 10-20 miles of range per hour charged. You will need a charging regulator box to protect the vehicle against things like power surges, which can cost $500-$1000+ before installation. For any modifications to your home’s power system, consult an electrician to add 240V outlets and ensure your home can support the proper amperage.
- Level 2 charging in public (public charging networks): public chargers can also be used on BEVs and PHEVs, though for a PHEV you should evaluate if the cost is justified—because the price of charging at public chargers varies, and it may be cheaper to simply use the gasoline already in your car.
- Direct current (DC) fast charging: DC fast charging uses direct current (DC) electricity to charge the battery of an electric vehicle. DC fast charging is much faster than Level 1 and Level 2 charging, charging an EV battery up to 80% in about 30 minutes. It’s an ideal option for longer trips and for charging an EV quickly when time is limited. PHEVs do not support direct current fast charging (also known as Level 3 charging); that would be like trying to fill a small bucket with a fire hose.
Full electric vehicles powered by an electric motor and battery typically have the lowest operating cost (though a variety of factors influence personal operating cost).
For example, the EPA estimates the cost to drive an all-electric 2022 Ford F-150 Lightning 4WD for 25 miles would be $1.83, while the cost to drive an all-gas 2022 Ford F-150 4WD with 3.5l V6 for 25 miles would be $4.33.
Your personal results will vary based upon local electricity rates, gasoline costs, and vehicle usage. Figures are based on EPA estimates for when a vehicle is sold as new. The cost to drive 25 miles may vary for reasons like driving conditions and vehicle history. Unless specified, the figures are for vehicles equipped with an automatic transmission. Full details are available at fueleconomy.gov.
The simple fact is that the average cost of charging an electric car is less than the average cost of fueling a gasoline car. Check out our full article on the cost of charging an electric car compared to pumping gas to learn more.
CarMax cannot provide tax advice. Consider consulting a tax professional about this credit.
We hope you found this information helpful. This content is intended to inform and is not meant to indicate that a particular vehicle is currently available or recommended for you.
Statements of fuel economy or EV range are based on EPA and other third-party estimates for vehicles when new. Fuel economy and EV range will degrade with time and vary based on age, driving conditions, vehicle history, and other conditions. See fueleconomy.gov for more info.
Editorial content contained on this page comes from Edmunds.com, Inc., a subsidiary of CarMax Enterprise Service, LLC, and information related to featured vehicles comes from third-party sources, including manufacturer information. Product and company names may be trademarks or registered trademarks of third-party entities. Use of them does not imply any affiliation with or endorsement by these entities. By clicking on any video links, you will be taken to a third-party site maintained by YouTube, Inc.
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