The best modern EV incentives for American drivers are on the way out the door. Should I grab a Model Y before the tax credits go away forever?
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- One big and beautiful bill law brings the EV tax credit to a quick end this September.
- By using this incentive, consumers can save thousands of people with the brand new Tesla Model Y.
- Critics and experts call the latest generation Model Y a greater improvement over the previous model.
Is it the best time to get behind the wheel of the Tesla Model y before the federal government’s EV tax credits are removed?
President Donald Trump’s one big beautiful bill law changed the official repeal date of the federal electric vehicle tax from December 2025 to September 30, 2025.
Despite the year’s roller coaster, the Tesla brand remains a major player in the EV space. Producing two of the most popular EVs in the country, the Model Y may be perfect for your lifestyle.
How much does the Tesla model cost after tax deduction?
2026 Tesla Model Y Long-range Rear Wheel Drive starts at $44,990. This is below the average new vehicle price ($48,907 according to Cox Automotive). Applying the Federal Electric Vehicle Tax Credit ($7,500) will bring the price to close to $37,490. The Model Y is still significantly more expensive than a small gas SUV, but offers unique ownership, including Tesla exclusive features and reduced charging costs (residence electricity).
Tesla’s 2026 Y Long Range 4-Wheel Drive starts at $48,990. It costs about $41,490 after tax credit. The Model Y’s long-range all-wheel drive is more affordable than the average new vehicle after the incentive is applied.
Should I get the 2026 Tesla Model Y?
Tesla’s small electric SUV is one of the country’s best-selling EVs, as it is practical enough for many American drivers. Additionally, EVs have excellent driving dynamics, as well as a wealth of advanced standard safety and driver assistance features.
Standard features
- 15.4 inch infotainment screen
- Emergency braking with pedestrian detection
- Lane Keeping Assist
- Keyless entry with phone key
- Hands Free Power Lift Gate
- Blind Spot Monitoring
All Tesla Model Y Trims offer driving ranges of over 300 miles. Additionally, Tesla has a large supercharger network that allows you to charge your Model Y from 10% to 80% within 30 minutes. According to Edmunds, the latest Model Y addressed several issues from the previous generation, including ride comfort and interior materials.
The 2026 Model Y is “the best EV for most people.” said Patrick George, editor-in-chief of InsideEvs, an electric vehicle news and review site. George calls Model y the “Total Package EV.”
Which Tesla Model Y should I get?
The long-range rear-wheel drive trim has an estimated drive range of 357 miles. Accelerates from 0 to 60 mph in 5.4 seconds. Tesla’s all-wheel drive trim ranges from 327 miles. It accelerates from 0 to 60 mph in 4.6 seconds.
Tesla’s basic model is a better choice for drivers who value range and are more budget-conscious. All-wheel drive is suitable for drivers who need to enhance their functionality.
Do I need to buy or lease a Tesla Model Y?
Buying a new vehicle is a long-term commitment, as many new vehicles can have ownership for more than 14 years. If you’re not used to the world of EV ownership, leasing your 2026 Model Y might be a better option. If you have experienced previous Model Y generation and are a fan of nameplates, buying the latest model year is worth considering.
Tesla has leased its base model for $399 a month for 36 months, falling $3,000. This amounts to $17,364 over three years for the Model Y.
The all-wheel drive trim lease costs $449 a month over 36 months, down $3,000. This is $19,164 for three years with Model y all-wheel drive. Both lease transactions have a 10,000 miles limit.
