Which Tax Credit? Hyundai Reduces Ioniq 5 EV Price by Almost $10,000

      Hyundai

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      The automotive industry is currently facing a tumultuous period, to put it mildly. Even without new tariffs and regulatory changes disrupting the market, this sector is undergoing a major technological shift. It's happening— the only question is how fast. Hyundai, in particular, has seen a favorable increase in EV sales following the end of the tax credit, but it knows it must counteract rising prices to attract buyers. And that's precisely what it's doing.

      In a time when all vehicles, particularly the exciting ones, are becoming pricier, Hyundai has reduced the price by nearly five figures on nearly every configuration of the Ioniq 5 for the upcoming model year. Additionally, it has extended its own $7,500 discount through October on 2025 models to offset the end of the federal rebate. The following table illustrates the pricing differences for each trim between the 2025 and 2026 models:

      Ioniq 5 Trim Horsepower 2026 Price 2025 Price 2026 Price Reduction

      SE RWD Standard Range 168 hp $36,600 $44,200 $7,600

      SE RWD 225 hp $39,100 $48,250 $9,150

      SEL RWD 225 hp $41,400 $51,200 $9,800

      Limited RWD 225 hp $46,675 $55,900 $9,225

      SE AWD 320 hp $42,600 $51,750 $9,150

      SEL AWD 320 hp $44,900 $54,700 $9,800

      XRT AWD 320 hp $47,875 $57,100 $9,225

      Limited AWD 320 hp $50,575 $59,800 $9,225

      All listed prices include a $1,600 freight charge.

      Every trim level, except for the base SE Standard Range single motor, rear-wheel-drive model, is over $9,000 cheaper for the 2026 model year. The largest discount applies to the SEL models; regardless of whether you opt for rear- or all-wheel drive, there's a savings of $9,800. This means that as we approach 2026, you could potentially drive away in a premium Limited AWD vehicle for less than the price you would have paid for an SEL RWD, without credits, in the past year.

      This is a bold move by Hyundai, especially considering that until U.S. production of the Ioniq 5 began in May, the only guaranteed way to obtain the full $7,500 IRS rebate was through leasing, although such discounts were sometimes also available for financed vehicles. Keeping this in mind, the savings may not seem as appealing, but even if the SUV is a thousand or two cheaper, that's still a significant advantage in this economy, where prices are generally on the rise.

      The reduction of the credit has led to a substantial surge in Hyundai EV sales in recent weeks, with a remarkable 153% increase. Extending the discounts may help maintain this momentum, and they should, as the Ioniq 5 is an excellent electric vehicle. Naturally, our pick would be the Ioniq 5 N; not surprisingly, it is the only model currently not listed for a price reduction.

      2026 Hyundai Ioniq 5 Limited. Hyundai

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