If you’re buying a new electric or hybrid vehicle, you may be eligible to get up to $10,000 off the purchase cost of your vehicle.
Many provinces and territories provide incentives for purchasing a new electric vehicle, and on top of that, you may also get up to $5,000 back for the federal EV rebate.
Electric cars are not cheap, but they are great for the environment and may cost less in the long run. These EV incentives can help offset the upfront cost greatly.
Keep reading to learn about the EV rebates in Canada, including the federal program and EV rebates in certain provinces.
Summary of EV Rebates and Incentives in Canada
|Province/Territory||Maximum EV Rebate|
|Newfoundland & Labrador||$7,500|
|Prince Edward Island||$10,000|
Funded in May 2019, the iZEV program helps electric vehicle owners offset the high upfront purchase cost. Customers who buy or lease a zero-emission vehicle can be eligible for a point-of-sale incentive.
Only vehicles listed on Transport Canada’s website are eligible for an EV incentive. They must be purchased or leased for at least 12 months on or after the eligibility date.
Depending on the type of vehicle and cost, you could be eligible for one of two incentives, as discussed below.
In addition to the federal electric car rebate in Canada, some provinces have their own EV rebate programs.
Eligible electric vehicles that meet the federal iZEV program requirements are either:
- A passenger car where the base model MSRP is less than $55,000 and higher priced trims of these vehicles up to an MSRP of $65,000, OR
- A pickup truck, station wagon, van, minivan, SUV, or special purpose vehicle where the base model MSRP is less than $60,000 and higher priced trims of these vehicles up to an MSRP of $70,000.
The two levels of incentives are as follows:
You can receive up to $5,000 for: hydrogen fuel cell, battery-electric, and longer-range plug-in hybrid vehicles.
You can receive up to $2,500 for: shorter-range plug-in hybrid electric vehicles.
These vehicles are all eligible for the iZEV program.
Note that only new electric vehicles (vehicles that have not yet been plated) are eligible for the incentive. They can be test driven, as long as it does not surpass 10,000 km.
Canadians are eligible for one incentive under the iZEV program in one calendar year, while businesses operating fleets are eligible for up to 10 incentives per calendar year.
The vehicle must have been purchased or leased for at least 12 months.
If you are buying or leasing a car eligible for this incentive, it is applied at the point-of-sale by the dealership. This federal incentive is applied along with any other provincial or territorial incentive offered. More details below.
On top of the federal iZEV program, some provinces and territories also offer incentives for purchasing an electric vehicle.
The Quebec government offers individuals, businesses, and organizations a rebate when they purchase or lease a new electric vehicle. Depending on the type of vehicle and certain conditions, you could be rebated up to $7,000.
To be eligible for the Roulez vert program, the MSRP must be less than $60,000, and the vehicle must be on this list of eligible vehicles.
Note that in the near future, the MSRP will be increased to $65,000.
- All-electric vehicles: $7,000
- Hydrogen-powered vehicles: $7,000
- Plug-in hybrid vehicles: $5,000, $2,500, or $300, based on the battery capacity
- Electric motorcycles: $2,000
- Limited-speed electric motorcycles: $500
If you are buying a used electric vehicle, you can get $3,500 rebated.
The used electric vehicle must be on this list of eligible used EVs. It must also be equipped with a 4-kWh battery or more, be 3 or 4 years old, and have been inspected to evaluate the residual capacity of the battery.
As this is not a new vehicle, you need to register for online services and create a rebate application.
If you purchase a 240-volt home charging station, you can be eligible for $600 in financial assistance.
To be eligible, you must be the owner or long-term lessee of an electric vehicle, and the charging station must be new, Level 2 AC qualified, and approved by an accredited certification body.
The list of eligible charging stations can be found here.
EV Rebates in British Columbia
If you live in BC, have a valid BC driver’s license, and meet the income requirements, you can apply for a rebate of up to $4,000 when purchasing or leasing a new electric or hybrid vehicle.
For plug-in hybrid vehicles with a range of less than 85km, here’s how much you can be rebated:
- Income less than $80,000: $2,000 rebate
- Income $80,001 to $90,000: $1,000 rebate
- Income $90,001 to $100,000: $500 rebate
- Income higher than $100,001: no rebate
For battery electric and long-range plug-in hybrid vehicles, you can be rebated:
- Income less than $80,000: $4,000 rebate
- Income $80,001 to $90,000: $2,000 rebate
- Income $90,001 to $100,000: $1,000 rebate
- Income higher than $100,001: no rebate
To be eligible for this EV car rebate, the MSRP of cars must be less than $55,000, and the MSRP of larger vehicles must be less than $70,000.
The list of eligible vehicles can be found here.
To get this rebate, you must apply online before purchasing or leasing an electric vehicle. You’ll be rebated at the dealership and can only use this rebate once.
If you’re installing a Level 2 (240 volt) charging station in your home, you can get a rebate of up to 50% (a maximum of $350) of the cost of the charger.
The charger must be on this list of eligible EV chargers.
When you buy an electric vehicle in Newfoundland and Labrador between April 1, 2022, and March 15, 2023, you could get up to $2,500 on top of the federal rebates.
If you purchase or lease a 100% electric vehicle, you could get a $2,500 rebate, and if you purchase or lease a plug-in hybrid, you could get a $1,500 rebate.
To be eligible, you must purchase or lease a new electric vehicle for a minimum of 48 months or purchase a pre-owned 100% all-electric vehicle. It must be purchased from a licensed vehicle dealership.
Only one rebate will be issued per vehicle or VIN number.
Eligible vehicle models are listed on pages 38-43 of this guide.
The rebate will not be issued at the point of sale; instead, you must apply online. If eligible, you will be mailed a rebate cheque.
If you’re shopping for a Plug-in Hybrid Vehicle (PHEV) or Battery Electric Vehicle (BEV) in New Brunswick, you may qualify for the Plug-In NB rebate program.
Rebates are available for those who purchased or leased eligible BEVs and PHEVs on or after July 8, 2021.
For new vehicles, the rebate will apply to the same models and have the same conditions as the government’s iZEV program.
Here are the rebate amounts for when you purchase a new electric vehicle:
- New battery electric vehicle: $5,000
- New long range (> 50km) plug-in hybrid electric vehicle: $5,000
- New short range (< 50km) plug-in hybrid electric vehicle: $2,500
If you’re leasing a BEV or long-range PHEV, here’s how much you can get back based on the length of lease:
- 48 months: $5,000
- 36 months: $3,750
- 24 months: $2,500
- 12 months: $1,250
For short range PHEVs, here’s how much you can be rebated based on the length of the lease:
- 48 months: $2,500
- 36 months: $1,875
- 24 months: $1,250
- 12 months: $625
If you’re purchasing a used electric vehicle, you can get up to $2,500 rebated.
The used vehicle must be purchased from a licensed dealer in New Brunswick and should be inspected to evaluate the residual battery capacity.
The retail price for a used BEV must be between $10,000 and $60,000, and the retail price for a used short- or long-range PHEV must be between $10,000 and $50,000.
For a used BEV, you can receive $2,500 in rebates, and for a used PHEV, you can receive $1,000.
You can claim a rebate up to a maximum of $750 if you are installing a level 2 EV charger.
The charger must be:
- On the list of eligible chargers
- A new purchase
- Approved by an accredited Canadian certification body
- Installed by a licensed electrician
- Have network connectivity
Through EVAssist, Nova Scotians can claim up to $3,000 on the purchase of an electric vehicle or e-bike. The vehicle must have been purchased on or after February 24, 2021.
Eligible vehicles are the same as the ones in the federal iZEV program.
Rebates for new EVs:
- BEVs: $3,000
- Long-range PHEVs: $3,000
- Short-range PHEVs: $2,000
Rebated for used EVs:
- BEVs: $2,000
- Long-range PHEVs: $1,000
- Short-range PHEVs: $1,000
E-bikes retailing for $1,200 or more are eligible for a $500 rebate. They must meet the following criteria:
- The electric motor must be 500 watts or less and propel the cycle no faster than 32 km/h without pedalling
- The motor must disengage when the brake is applied, the accelerator is released, or the operator stops pedalling
- The motor cannot be gas or diesel-powered
The e-bike must be purchased from a retailer with a physical storefront in the province; they cannot be ordered online.
The government of PEI offers a generous EV rebate of up to $5,000 for those who purchase a new or used electric vehicle. The rebate will be given at the point of sale.
Prince Edward Island residents who are eligible for the electric vehicle incentive will receive a free level 2 charger – which differs PEI from every other province.
To qualify for the incentive, used BEVs or PHEVs must have an MSRP of less than $55,000.
On new BEVs, this is how much you can receive based on the lease term:
- 48 month lease or longer: $5,000
- 36 month lease: $3,750
- 24 month lease: $2,500
- 12 month lease: $1,250
On new PHEVs, you can receive the following amounts:
- 48 month lease or longer: $2,500
- 36 month lease: $1,875
- 24 month lease: $1,250
- 12 month lease: $625
Ontario, Manitoba, Alberta, Saskatchewan, Nunavut, and the Northwest Territories do not have provincial electric vehicle rebates (apart from the federal incentive).
FAQs for EV Incentives in Canada
The Incentives for Zero-Emission Vehicles (iZEV) program offers rebates of up to $5,000 on the purchase or lease of an electric vehicle. On top of the federal amount, some provinces offer their own provincial or federal EV rebate program, many of which are available in 2023.
Ontario does not have a provincial EV rebate program or tax credit. There used to be one, but Doug Ford scrapped the program when he took power.
No, an electric car is not 100% tax-deductible. You may be eligible for the federal EV incentive plus a provincial or territorial EV rebate, but you cannot deduct 100% of it for taxes. Depending on your vehicle make, you may claim a maximum of 30% for the CCA rate.
To get a discount on a Tesla, buy an older model from a used Tesla dealership. You could also buy at the end of the quarter when prices tend to be lower, or buy a test-drive or showroom model.
If you’re eligible, the federal iZEV program rebate is applied directly at the point-of-sale. Provincial or territorial rebates for EV cars are either applied at point of sale or you need to fill out an application online.
Electric car insurance works the same as policies for normal cars. The premiums are generally the same price but can be more expensive depending on the model of the car and whether it will need repairs.