With EV tax credits expiring, we did the math to see if EVs are still cheaper than gas cars

Federal government $7,500 discount on Electric vehicles It’s officially gone, which dramatically changes the calculus of electric car ownership — and may make you wonder if it’s more economical to buy a gas-powered car now.

This is a fair question, but a car’s sticker price (and lack of a government rebate) makes up only one part of the total cost of car ownership, which also includes fuel costs, maintenance, and depreciation.

When you take all that into account, owning electric cars is still typically cheaper in the long run, according to auto experts. We’ve done the math to show you how the costs break down, and how you can make an accurate comparison before making your next car purchase.

Compare the initial costs of electric, hybrid and gasoline cars

Sticker price is what most people think about when comparing prices of different cars. From this perspective, the disappearance of the $7,500 federal EV tax credit puts EVs at a significant disadvantage in terms of upfront costs compared to gasoline or passive hybrids.

When it comes to upfront costs, we’ve identified the winners, losers and runners-up:

Winner 🏆	Vehicles with internal combustion engines	Conventional gasoline cars usually have the lowest price compared to their electrified counterparts. These types of vehicles have well-established supply chains and economies of scale that make them cheaper to manufacture, according to Antoine Godwinsenior writer at CNET.
Runner-up 🥈	Hybrid vehicles	Hybrid electric vehicles They often have a slight advantage over ICE cars due to their dual gas-electric powertrain, but are usually more affordable than most pure electric cars.
Loser 💸	Electric vehicles	Electric cars are usually at the highest prices. “The battery is going to be the biggest reason why electric vehicles are so expensive,” Goodwin says. EVs also do not benefit much from economies of scale. In addition, consumers still support the research and development that legacy automakers are doing to design electric vehicles, according to Amelia Dahlgaard, an auto expert known online as Motorhead Mama.

Compare fuel and shipping costs

Gas prices rise — You can’t control gas prices, but you can control how much you spend to refuel.

patty_c/Getty

This is where you start to see some of the biggest savings between electric vehicles and gasoline vehicles. Here’s how to eliminate costs:

Winner 🏆	Electric vehicles	The cost of charging an electric car depends a lot on your local electricity rates and where you charge your car. Charging at home with a Level 2 charger is usually the cheapest way to fuel your electric vehicle, while public Level 3 fast chargers are usually the most expensive. In general, charging an electric vehicle at home is cheaper than fueling a similar vehicle, according to Goodwin and Dalgaard. For an average of 11,000 miles per year, according to the national average electricity price, you’ll spend $550 on charging.
Runner-up 🥈	Hybrid vehicles	Fuel costs for passive hybrids are usually lower than regular ICE cars because they get better overall fuel mileage. some models, Like a Toyota Priusget an average of 54 miles per gallon. So, while their initial cost may be higher than a pure gasoline car, hybrid cars have a much lower cost per mile, and therefore lower refueling costs.
Loser 💸	Vehicles with internal combustion engines	Gasoline is usually the most expensive way to fuel a car compared to an electric battery. “Electricity has historically been significantly less expensive than gasoline,” Goodwin says. The average gasoline-powered car gets 26 miles per gallon, which represents an annual fuel cost of $1,320 for an average of 11,000 miles driven per year.

Maintenance and repair costs: less is more

Electric vehicles are also a big winner of lower maintenance costs, adding a significant amount of savings to the total cost of ownership. Here’s how it compares to gasoline cars:

Winner 🏆	Electric vehicles	While gasoline engines have a lot of things that can break, electric motors rarely do. “It’s usually set and then forgotten,” Goodwin says. (No oil, spark plugs, or exhaust system changes here.) This makes electric vehicles’ maintenance costs much lower than their gas counterparts. However, electric car tires generally wear out faster because the car is heavier. And if you need to make a major repair on an electric vehicle (for example, after a collision), it’s generally more expensive because replacing the batteries and technology in an electric vehicle is expensive.
Runner-up 🥈	Vehicles with internal combustion engines	Gasoline-powered cars require much more maintenance than electric cars. This is because gasoline engines have a lot more moving parts, and a lot more things that can break, than an electric powertrain. Regular oil and fluid changes, as well as replacing brakes and other mechanical parts, can increase recurring maintenance costs.
Loser 💸	Hybrid vehicles	Passive hybrid vehicles require the same maintenance as pure gasoline vehicles, but perhaps less often because the engine runs less time. Meanwhile, hybrids, which have a full gasoline engine and a massive battery-electric powertrain, are essentially the worst of both worlds when it comes to maintenance costs, Dahlgaard says.

Compare insurance costs

Getty Images-461479642 — Insurance is another ongoing cost you can’t avoid – but different types of cars can mean your policy prices vary widely.

Karl Kurt/Getty Images

Insurance costs vary a lot depending on the type of car you own. Here are the general trends for different compounds:

Winner 🏆	Vehicles with internal combustion engines	These insurance costs are usually lower, because they are cheaper to replace and repair after collisions.
Runner-up 🥈	Hybrid vehicles	In general, these cars are more expensive to insure compared to pure gasoline vehicles because they are more expensive initially.
Loser 💸	Electric vehicles	These cars are the most expensive to insure because they have the highest sticker price, and because components like batteries are more expensive to replace, according to Goodwin and Dalgaard.

Consumption and resale value: the wild card

Depreciation — or how much your car’s value depreciates over time — can have a big impact on your total cost of ownership. This is because when you go to sell your car, its residual value can make a big difference in how much money you lose in the deal.

Here’s the division between gasoline-powered cars and electric cars:

Winner 🏆	Vehicles with internal combustion engines	Because gasoline cars have been around for a long time, their resale value follows the expected and well-established depreciation curve. Currently, this typically means that ICE cars depreciate in value more slowly than electric cars.
Runner-up 🥈	Hybrid vehicles	These cars have traditionally held their value well due to strong demand and fuel efficiency.
Loser 💸	Electric vehicles	Historically, electric vehicles have seen a higher and faster depreciation in value compared to vehicles powered by internal combustion engines. This is partly because electric vehicle technology improves so quickly (resulting in better battery range and faster charging) that older models become less desirable more quickly (much like the old ones). iPhone modelsDalgaard says.) However, as the EV market matures, this effect may begin to decline, Goodwin notes, leading to improved resale value for EVs.

Judge the total cost of ownership

Chevrolet Equinox 2026 in red driving along the street — I’ve compared the total cost of ownership of the same vehicle in its electric and gas models to highlight the differences.

Chevrolet

I’ve done the calculations using a real-life example, where I compared an electric and petrol version of the same car: the new 2026 version of Chevrolet Equinox.

Automatic type	Electric vehicles	Gas-powered vehicles
Brand/Model/Year	2026 Chevrolet Equinox EV	Chevrolet Equinox 2026
MSRP (sticker price) upon purchase	$36,495	$30,495
Fuel/freight cost	$0.05 per mile	$0.12 per mile
The cost of gasoline or electricity	$0.175 per kilowatt hour	$3.20 per gallon (US average)
Maintenance costs	6 cents per mile	10 cents per mile
Cost over 5 years	$42,792	$43,088
Cost over 10 years	$49,744	$56,994
Cost more than 15 years	$57,420	$72,345

Winner: Electric Cars 🏆

Loser: Vehicles with internal combustion engines 💸

Even without the federal government’s $7,500 tax break, the cost of ownership of EVs can still be less than that of ICE cars.

“In general, you’ll be better off with an electric car,” Dalgaard says. This is because although electric vehicles have a higher initial cost, gasoline cars can cost more than twice as much as fuel, and have much higher maintenance costs.

Meanwhile, hybrids will likely have an advantage over ICE vehicles (due to improved gas mileage), and offer a good compromise if you’re not ready for an electric car.

Of course, the best option for you will also depend on your driving habits: how much you drive, how long you plan to keep it, and whether you can charge an electric car at home, for example.

“Now you have more ability to choose the powertrain that works for you,” Goodwin says of the current automotive market.

You’ll have to run the numbers yourself using local electricity rates, gas prices, and driving patterns. It’s complicated, however Online calculators like this one from the New York Times It can help you make the comparison.