Short answer
EV rebates in Canada now come from the federal EVAP program. It pays up to $5,000 on a new electric car and $2,500 on a plug-in hybrid in 2026. Carmakers also post their own cash and rate deals that can stack on top.
My store told buyers the EV rebate came from the government and not from us. If a dealer calls the rebate their discount, ask what they are taking off on their own.
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What is the federal EV rebate in 2026?
The Electric Vehicle Affordability Program is called EVAP. It replaced the old iZEV rebate. Transport Canada closed iZEV and opened EVAP for cars bought or leased on or after February 16, 2026.
In 2026 a battery electric car gets up to $5,000. A plug-in hybrid gets up to $2,500. Fuel cell cars get the same $5,000 as electric cars.
The car must have a final price of $50,000 or less. A car made in Canada has no price cap.
Transport Canada keeps a list of models that qualify. Ask the dealer to confirm your car before you sign.
How do you claim EV rebates in Canada?
You do not apply for EV rebates on your own. The dealer applies the rebate at the point of sale. It comes off your bill of sale or lease.
Transport Canada says the dealer applies tax and fees first. Then the rebate comes off the total.
Leases count too. A lease of 48 months or more gets the full amount. A lease of 12 to 47 months gets a smaller share.
Get the rebate amount on your bill of sale. That is your proof it was applied. Ask the dealer to show the rebate as its own line before you sign.
When do EV rebates go down?
EV rebates step down each year. On January 1, 2027 the electric car rebate drops from $5,000 to $4,000. The plug-in hybrid rebate drops from $2,500 to $2,000.
The date that counts is when the dealer files your claim. It is not the day you pick up the car. A car you sign for in December can still miss the 2026 amount if the claim is late.
Buying near the end of the year? Ask the dealer to file the claim in writing before December 31.
In 2028 the electric car rebate drops again to $3,000. It keeps going down until 2031.
What car incentives do carmakers offer in Canada?
Carmakers post their own deals on top of any government rebate. These include cash off the price and low lease or finance rates. Some deals target one model or one trim.
The deals change each month. A dealer may not mention one unless you ask. Check the carmaker website for your model before you shop.
Ask if the deal ends on a set date. Write down the deal name so the dealer cannot swap it out.
Some deals cannot be combined. A low rate may replace a cash offer. Ask the dealer to price both ways so you can see which one saves more.
Do EV rebates make the car price less important?
No. A rebate does not change what the dealer paid for the car. The gap between MSRP and dealer cost is still there.
Some dealers price an electric car near MSRP and point to the rebate as the deal. Do not let the rebate stand in for a discount. Ask for both.
Know the dealer cost before you start. Our free Discount Report shows MSRP and dealer cost for the trim you want. Then you can push the price and still keep the rebate.
A $5,000 rebate on top of a fair discount beats the rebate alone.
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