Federal EV Rebate in Canada
The federal EV rebate in Canada is the Electric Vehicle Affordability Program (EVAP): $5,000 off a new electric car in 2026, then $4,000 from January 1, 2027. The dealer takes it off the price.
Government of Canada EV Rebate Amounts by Year
| Vehicle bought or leased in | Fully electric | Plug-in hybrid |
|---|---|---|
| 2026 | $5,000 | $2,500 |
| 2027 | $4,000 | $2,000 |
| 2028 | $3,000 | $1,500 |
| 2029 | $3,000 | $1,500 |
| 2030 | $2,000 | $1,000 |
| 2031 | $2,000 | $1,000 |
Your rebate steps down over time. What you receive is set by the year the dealer files the eligibility assessment, which is the dealer's confirmation that both you and the car qualify. Neither the car's model year nor your delivery date affects the amount (Transport Canada).
Federal EVAP rules
- Price cap: $50,000 on the deal's final price before tax, waived for cars built in Canada
- Made in: Canada, or a country that has a free-trade agreement with Canada
- Paperwork: none for you; the dealer deducts it at purchase or lease
- Limit: leases of 48 months or longer earn the full amount; one EVAP rebate for each person
Source: Transport Canada: EVAP overview · every federal rule explained
Which Cars Qualify for EVAP?
The rebate only goes to fully electric cars and plug-in hybrids. A plug-in hybrid runs on a battery you plug into an outlet, plus a gas engine. Hybrids that you cannot plug in get nothing (Transport Canada).
The car also has to pass these checks:
- Its country of manufacture must be Canada or one of Canada's free-trade partners.
- It must be new; a demonstrator showing under 10,000 km also qualifies.
- It has to weigh less than 8,500 pounds and be fit for highway driving.
- The final transaction value cannot top $50,000. For cars made in Canada, there is no price cap whatsoever.
Transport Canada maintains a list of eligible vehicles. From that list, we track prices for 33 models and 111 trims.
Some popular models aren't on the list and cost more than $50,000, so they get no federal rebate. If one is made in Canada there's no price limit, but these aren't on the list either way:
Hyundai's IONIQ 5 in the Preferred RWD Long Range trim, a 2026 model, is priced at $55,499.
The 2026 Honda Prologue EX AWD costs $59,990.
The 2026 Kia EV9 Light RWD costs $59,995.
The 2026 BMW i4 eDrive40 Gran Coupe costs $64,990.
The 2027 Polestar 2 Long Range Dual Motor costs $69,900.
The 2026 Cadillac LYRIQ 4dr Luxury costs $70,399.
Even though the 2027 Tesla Model 3 Premium RWD sits at $39,490, below the cap, it earns no federal rebate, because the list does not include it (Car Cost Canada).
| Car | Type | Range | MSRP | Federal | After federal rebate | After rebates in Quebec (QC) | After rebates in Manitoba (MB) |
|---|---|---|---|---|---|---|---|
 2027 Nissan LEAF S | Electric | 488 km | $34,998 | $5,000 | $29,998 | $27,998 | $25,998 |
| 2027 Kia EV3 Light FWD | Electric | 356 km | $36,995 | $5,000 | $31,995 | $29,995 | $27,995 |
| 2026 Kia EV4 Light | Electric | 552 km | $38,995 | $5,000 | $33,995 | $31,995 | $29,995 |
 2025 FIAT 500e Red | Electric | 227 km | $39,995 | $5,000 | $34,995 | $32,995 | $30,995 |
| 2025 Kia Niro PHEV LX | Plug-in hybrid | 55 km | $36,795 | $2,500 | $34,295 | $33,795 | $30,295 |
 2026 Toyota Prius Plug-in Hybrid SE | Plug-in hybrid | 72 km | $40,150 | $2,500 | $37,650 | $37,150 | $33,650 |
Built in Canada and so free of the price limit: Chrysler Pacifica Plug-in Hybrid, Dodge Charger.
Provincial rebates on top of the federal one
The federal rebate is the same everywhere in Canada. Right now only Quebec and Manitoba add their own (Transport Canada).
Sources for the provinces: Quebec, Manitoba, Alberta, Saskatchewan, British Columbia, New Brunswick.
| Province or territory | Its own rebate | Provincial, new electric | Federal + provincial, new electric | Cheapest new EV after both | EV fee |
|---|---|---|---|---|---|
| Ontario (ON) | Ended July 2018 | $0 | $5,000 | $29,998Nissan LEAF S | None |
| Quebec (QC) | Open | $2,000 | $7,000 | $27,998Nissan LEAF S | $125 a year from 2027 |
| British Columbia (BC) | Paused since May 2025 | $0 | $5,000 | $29,998Nissan LEAF S | None |
| Alberta (AB) | None | $0 | $5,000 | $29,998Nissan LEAF S | $200 a year |
| Manitoba (MB) | Open | $4,000 | $9,000 | $25,998Nissan LEAF S | None |
| Saskatchewan (SK) | None | $0 | $5,000 | $29,998Nissan LEAF S | $300 a year |
| Nova Scotia (NS) | Ended | $0 | $5,000 | $29,998Nissan LEAF S | $500 every two years ($250 plug-in hybrid) |
| New Brunswick (NB) | Ended July 2025 | $0 | $5,000 | $29,998Nissan LEAF S | None |
| Prince Edward Island (PE) | Paused since April 2026 | $0 | $5,000 | $29,998Nissan LEAF S | None |
| Newfoundland and Labrador (NL) | Ended March 2026 | $0 | $5,000 | $29,998Nissan LEAF S | None |
| Yukon (YT) | Ended March 2026 | $0 | $5,000 | $29,998Nissan LEAF S | None |
| Northwest Territories (NT) | Paused | $0 | $5,000 | $29,998Nissan LEAF S | None |
| Nunavut (NU) | None | $0 | $5,000 | $29,998Nissan LEAF S | None |
Federal + provincial assumes a car on Transport Canada's list with a final price of $50,000 or less (no limit if it is built in Canada); Quebec pays only on cars listed at $65,000 or less and Manitoba pays only on cars listed at $70,000 or less.
The rebate in 2026
If the dealer submits your eligibility assessment in 2026, you get the program's highest rates. A lease must run at least 48 months to receive the full amount. Starting January 1, 2027, the amounts shrink to $4,000 for electric models and $2,000 for plug-in hybrids (Transport Canada).
In all, the program holds $2.275 billion. As of October 1, 2026, $1.92 billion remained unspent.
How it works at the dealership
- Pick a vehicle from the Transport Canada list whose final price lands at $50,000 or below, unless it was built in Canada.
- Buy or lease it at the dealership, where staff confirm that both you and the car qualify.
- The rebate comes off the price right then and there.
- Afterwards the dealer recovers the money from Transport Canada, so you never file anything.
Over the program's five years, each person can claim a single rebate, while a business or organization can claim as many as ten (Transport Canada).
EVAP on a Lease
With a lease, you receive part or all of the rebate, depending on how long the lease runs.
| Length of lease | Portion of the rebate | Fully electric in 2026 | Plug-in hybrid in 2026 |
|---|---|---|---|
| 48 months or more | Full amount | $5,000 | $2,500 |
| 36 months | Three-quarters | $3,750 | $1,875 |
| 24 months | Half | $2,500 | $1,250 |
| 12 months | One-quarter | $1,250 | $625 |
Does Canada Have an EV Tax Credit?
No. There is no federal EV tax credit in Canada. Federal help stops at the rebate the dealer subtracts from your purchase or lease price, so you never claim anything at tax time (Transport Canada).
iZEV: the Program That Came Before
Before this rebate there was iZEV, which paid up to $5,000 starting in May 2019. Transport Canada put it on hold on January 10, 2025, once its funding ran dry, and shut it down permanently on March 31, 2025 (Transport Canada).
In its place came the Electric Vehicle Affordability Program, which opened its doors on February 16, 2026.
Questions People Ask Often
Has the federal EV rebate come back?
Yes, it's back. Once iZEV ended in 2025, the federal rebate disappeared until this new program launched on February 16, 2026.
Is there an EV rebate in Canada for 2027?
Yes. If the dealer files the assessment in 2027, a fully electric car gets $4,000 and a plug-in hybrid gets $2,000.
Does the federal rebate apply to used cars?
Your vehicle has to be new. The single exception is a demonstrator with under 10,000 km. Manitoba's own rebate does include used cars, which get $2,500.
What can I save altogether in Quebec or Manitoba?
In Manitoba, if your dealer files a new eligible electric car in 2026 you can combine $5,000 from the federal program with $4,000 from the province. In Quebec, a new electric car that the dealer files and you register in 2026 can get you $5,000 from the federal side plus as much as $2,000 from the province.