The EV Tax Credit Is Gone, but Gas Prices Are Rewriting the Ownership Equation

Electric Vehicles Can Still Save Money, Although the Benefits Are Increasingly Unequal Across States

Electric vehicles entered a new financial era after the federal government eliminated the $7,500 credit for qualifying new EVs and the $4,000 credit for used models in September 2025.

Without those incentives, consumers must evaluate electric vehicles through a more complicated set of costs. Purchase price is only the beginning. Depreciation, annual registration charges, maintenance, collision repairs, home charging access, public electricity rates and weather can all determine whether an EV is less expensive than a gasoline vehicle.

Research compiled by Attorney Brian White found that electric vehicles still offer several substantial advantages. Routine maintenance can cost as much as 50% less, home charging can remain cheaper than fueling a hybrid, and gasoline prices rose more than 43% nationally over a 12-month period.

Those advantages are offset by faster depreciation, higher crash-repair costs and severe differences in charging access.

EVs Lose Value Faster Than Most Gas Vehicles

The average American vehicle loses approximately 45% to 46% of its value during the first five years of ownership.

Electric vehicles typically depreciate more quickly.

A vehicle purchased for $50,000 that loses 60% of its value would be worth approximately $20,000 after five years. A comparable gas vehicle losing 45% would retain approximately $27,500.

That $7,500 difference is equal to the former maximum federal new-EV credit.

Rapid technology development is one reason for the depreciation gap. Improvements in battery range and charging speed can make older EVs less desirable even when they remain mechanically sound. Resale values can also be affected by battery concerns, manufacturer stability and changes to public incentives.

However, not all EVs perform poorly. Newer long-range vehicles from established brands can retain between 60% and 70% of their original value, placing them within the range of stronger gasoline models.

Routine Maintenance Favors EVs

EVs have fewer mechanical systems requiring regular service.

Drivers do not need to budget for oil changes, exhaust repairs, spark plugs or many traditional engine components. Basic annual EV maintenance generally costs between $150 and $300.

Many gasoline vehicles cost between $900 and $1,800 per year to service.

Potential Maintenance Difference

Over five years, that difference could amount to between $3,000 and $8,250, depending on the vehicles compared.

EVs become more expensive when collision repairs are required. Crash repairs average approximately 20% more than those for similar gasoline vehicles. Forecasts suggest the difference could reach 30% by 2027.

Battery warranties provide some protection. Most manufacturers cover batteries for eight to 10 years or approximately 100,000 miles, limiting replacement exposure for early owners.

Gas Prices Rose 43.6% in One Year

The operating-cost comparison became more favorable to EVs after gasoline prices increased sharply in early 2026.

The national average reached $4.50 per gallon on May 12, compared with $3.14 on the same date in 2025.

California recorded the highest state average at $6.15 per gallon. Washington reached $5.77 and Hawaii averaged $5.64.

Even the least expensive states approached or exceeded $4:

• Oklahoma: $3.94
• Mississippi: $3.98
• Louisiana: $4.00

Ohio experienced the nation’s largest year-over-year increase at 57.2%. New Hampshire rose 56%, and Michigan increased 53.8%.

The increases were even more extreme in certain cities. Springfield, Ohio, recorded a 71% increase, while prices rose 64.4% in Dayton and 63% in Covington, Kentucky.

Charging at Home Is the Key Financial Divide

The EV ownership equation changes significantly depending on whether a driver can charge at home.

Approximately 79% of prospective EV owners expect to rely primarily on residential charging. That arrangement generally produces the lowest operating costs and allows drivers to charge overnight without making a separate stop.

Public fast charging is more expensive and requires additional time.

At 20°F, the added EV operating cost was calculated at:

• $32.11 per 1,000 miles with home charging
• $76.93 per 1,000 miles with public charging

An EV charged at home cost $36.19 less per 1,000 miles than a hybrid in cold weather. A publicly charged EV cost $86.26 more.

At 95°F, home-charged EVs remained $46.11 cheaper than hybrids, while public-charging users paid $41 more.

This means two people driving the same electric vehicle can experience very different ownership costs based solely on where they charge.

Public Electricity Prices Vary by More Than 80%

The national average public charging rate was approximately $0.42 per kilowatt-hour in May 2026.

State averages ranged from $0.291 per kilowatt-hour in Kansas to $0.529 in West Virginia.

The West Virginia rate was approximately 82% higher than the Kansas rate.

That difference makes national statements about EV affordability difficult. A driver’s savings can depend more heavily on local electricity costs than on the national average.

Winter Driving Reduces Range and Raises Costs

Cold weather remains one of the largest practical EV disadvantages.

At 20°F:

• EV efficiency fell 35.6%
• Driving range declined 39%
• Hybrid fuel economy fell 22.8%
• Charging times increased as batteries accepted power more slowly

An EV rated for 300 miles could lose approximately 117 miles of range under the study’s cold-weather conditions, reducing usable range to about 183 miles.

Heat had a smaller effect. At 95°F, EV efficiency fell 10.4% and range declined 8.5%. Hybrids lost 12% of their fuel efficiency.

Weather-Related Operating Cost Increases

Cold-weather drivers may also face longer travel times because they need additional charging stops.

Most surveyed EV drivers were willing to wait 21 to 40 minutes for fast charging. That remains substantially longer than a gasoline fill-up.

The Charging Network Is Highly Uneven

The United States has expanded its EV charging network, but availability remains concentrated in a handful of states.

California had 28,393 chargers in 2026, followed by New York with 21,380.

California had approximately 660 chargers for every one in Wyoming.

High totals do not necessarily mean universal access. Research involving nearly 6 million San Francisco Bay Area residents found drivers had only 5.2 hours of feasible access to fast chargers on an average day.

Chargers may be located too far away, occupied during peak periods or unavailable near a driver’s home.

States Are Replacing Incentives With Fees

Federal purchase credits ended, but 17 states continued offering some level of EV incentive.

The remaining state incentives ranged from approximately $1,500 in Rhode Island to $7,500 in Oregon and Maine.

At the same time, 40 states charged EV owners higher annual registration fees to compensate for gas-tax revenue they no longer pay.

Fees ranged from $50 in Hawaii and South Dakota to $260 in New Jersey.

Several states increased their fees:

Maryland, Montana, New Hampshire, New Jersey, Pennsylvania, Rhode Island, Texas and Vermont introduced new EV registration fees.

California and Alaska ended their EV tax-credit programs, while New Mexico introduced a new credit.

Some States Are Charging EV Owners by the Mile

States are experimenting with alternatives to fixed registration fees.

• Oregon allows qualifying drivers to pay $0.02 per mile instead of a $115 EV fee.
• Utah charges $0.0111 per mile, capped at the registration-fee amount.
• Virginia uses a rate of $0.0114 per mile.
• Hawaii allows EV owners to pay $0.008 per mile or a flat $50 fee.

Georgia, Iowa, Kentucky and Oklahoma have also imposed taxes on electricity purchased at charging stations.

These systems are intended to make EV owners contribute to road maintenance, but they also reduce some of the operating-cost advantage that encouraged consumers to transition away from gasoline.

Workplace Charging Could Offset Lost Tax Benefits

Workplace charging is becoming an increasingly important part of the EV market.

Only 15% of employees currently benefit from employer-provided zero-emission transportation programs. Among those without charging access, 98% said they would be interested in it.

Another 91% expressed interest in employer subsidies for purchasing or leasing an EV.

Large employers increasingly view charging as:

• A recruiting benefit
• A retention tool
• An extension of commuter assistance
• Support for corporate fleet electrification
• A method of reducing employee transportation costs

Research found that 61% of large companies without EV fleets were preparing to introduce electric vehicles, workplace charging or home-charging assistance.

Some automakers are also reducing upfront costs. Ford’s 2025 and 2026 Power Promise program offered qualifying EV customers a home charger and standard installation.

EV Ownership Still Works Best for Drivers With Charging Control

Attorney Brian White’s research shows that EV ownership has become less dependent on a national tax policy and more dependent on personal and geographic circumstances.

The strongest EV candidates are drivers who can charge at home, travel predictable routes, live in states with affordable electricity and keep their vehicles for several years.

The weakest financial case applies to buyers who:

• Depend on public fast charging
• Live in cold climates
• Pay high registration fees
• Have limited charging infrastructure
• Trade vehicles frequently
• Purchase models with weak resale demand

The end of federal incentives has made the decision more difficult, but surging gas prices and lower maintenance costs prevent a simple conclusion that EVs are no longer worthwhile.

The more accurate answer is that electric vehicles can still save money, but those savings are increasingly determined by ZIP code, charging access and ownership habits.