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The Best EVs That Qualify For The Federal Tax Credit In 2025

If you’ve been mulling over an electric car purchase, you have just under three months to get a big, fat, federally funded discount on the hood. Now that the Republicans’ “Big Beautiful Bill” has passed, the $7,500 federal EV tax credit is set to expire after September 30—about eight years early. 

In all, 20 electric cars are eligible for the tax credit when purchased. (Leasing is a whole different story; any EV can qualify in that case.) But they aren't all created equal. These are the 10 cars the InsideEVs staff recommends the most, based on road tests, years of experience analyzing the EV market and our knowledge of what matters most to buyers. 

How We Test

Every year, the InsideEVs staff tests dozens of EVs and hybrid cars at events put on by automakers and during week-long reviews. We drive, charge and live with these cars in cities across the country and around the world to give our readers the very best advice on what to buy. We also spend all day, every day keeping track of the rapidly evolving EV landscape so we can put these cars into context. 

When we review cars, we think about two critical questions: Is this a good electric vehicle? And is this a good vehicle, period? Our favorite vehicles score well in both categories. They're EVs that are easy to live with, provide good bang for the buck and deliver on the metrics that matter most. 

To learn which of our top picks across several categories are also eligible for the $7,500 EV tax credit, read on. And check out our guides to the best EVs to buy, the best compact electric SUVs, the cheapest EVs and the best electric sedans

The Best Electric Crossovers

The Best Overall EV For Most People: 2025 Tesla Model Y

Tesla Model Y

Base Price: $46,630 (With tax credit: $39,130)
Range: 327-357 miles
Drive Type: Rear or all-wheel drive

The Tesla Model Y is ubiquitous in many parts of the country for a reason. Globally, it was until recently (maybe) the best-selling car—not just EV, but car—in the world. That's understandable; Tesla's most popular model is, in our opinion, the best all-around electric vehicle for most people. 

It delivers a combination of range, performance, technology and price that's practically unmatched—except by other Teslas. It benefits from lots of interior space, a satisfying infotainment system, great route planning, native access to thousands of Tesla Superchargers and a steady stream of software updates. 

That doesn't mean it'll automatically be the best choice for you, but it's probably worth considering. Plus, it just got a refresh that smooths over many of the rough edges that Model Y owners have complained about for years. In our testing, the new Model Y has a less jittery ride and demonstrates better overall quality than the outgoing model. 

Read our full review of the 2026 Tesla Model Y

The Best Overall EV, If You Don’t Want A Tesla: 2025 Hyundai Ioniq 5

Hyundai Ioniq 5

Base Price: $44,075 
Range: 245-318 miles
Drive Type: Rear- or all-wheel-drive

The Ioniq 5 serves up all the specs you want in a package full of retrofuturistic flair. It rides comfortably and has an airy cabin that's nice to spend time in. Thanks to the 800-volt architecture found in Hyundai's latest EVs, it's a charging monster too. The Ioniq 5 can recharge from 10% to 80% in right around 20 minutes, beating most mainstream competitors. 

It's been a top-tier choice from the jump, but it's better than ever after a 2025-model-year update. The latest Ioniq 5 has more range—up to a stellar 318 miles—plus a Tesla-style NACS port for seamless charging at Supercharger stalls. 

Read our first-drive review of the 2025 Hyundai Ioniq 5

Another Great Compact Electric SUV: Kia EV6

Kia EV6

Base Price: $44,375 
Range: 237-319 miles.
Drive Type: Rear or all-wheel drive

In all the most important ways, the EV6 is nearly identical to the Ioniq 5. It uses the same motors, battery and same underlying technology platform (E-GMP, for the nerds) that delivers ultra-fast charging and solid range. The user interface is very similar, too.

The EV6 trades away some cargo space for a smoother look and a little extra range. It's also slightly more athletic in the corners than the Ioniq 5 is. Ultimately, this comes down to personal preference, but the deals can be different on each car; don't hesitate to shop around.  

Here's another shining stamp of approval: Our Editor-in-Chief, Patrick George, has been leasing one of these since last year and likes it a lot. 

Read about our Editor-in-Chief's long-term testing of his Kia EV6

The Best Affordable EV: 2025 Chevy Equinox EV 

Chevrolet Equinox EV 3RS

Base Price: $34,995
Range: 285-319 miles
Drive Type: Front- or all-wheel-drive

As far as affordable EVs go, the Chevrolet Equinox EV is unmatched in the U.S. market. With over 300 miles of range in the base, $34,995 model, it provides bang-to-buck ratio that few other EVs do. The EV tax credit brings that price below $30,000, where very few electric models are found. 

The Equinox EV looks great and offers Super Cruise, GM's hands-free driving software, to boot. (Just note that the basic LT trim, which gets you that $34,995 price tag, does not offer Super Cruise.) Charging speeds aren't the best at lower-powered charging stations, and some may find the front-wheel-drive model sluggish on the road. One more potential con: None of GM's EVs offer Apple CarPlay or Android Auto. 

But none of that should take much away from the Equinox EV's overall package. Its standout combination of a low-ish price and strong specs earned it our Breakthrough EV of the Year award in 2024. And the people have spoken, too; after less than a year on sale, the Equinox EV is already America's best-selling non-Tesla EV

Read our full review of the Chevy Equinox EV

The Best Electric Three-Row SUVs

2026 Kia EV9

Kia EV9

Base Price: $56,395 
Range: 230-304 miles
Drive Type: Rear or all-wheel drive

Before the EV9, there wasn't a market for mainstream three-row electric SUVs in America. That earned it the runner-up spot in last year's Breakthrough Awards

What did we like so much about the EV9? Nearly everything. It drives well, has a roomy, comfortable interior and serves up sharp styling that almost anybody can get behind. It also charges incredibly quickly. And the 2026 model comes with a Tesla-style charging port from the factory.  

One con: For all-wheel-drive and the longer-range battery, prepare to pay a hefty premium over, say, a gas-powered Kia Telluride. 

Read our full review of the Kia EV9.

2026 Hyundai Ioniq 9

2026 Hyundai Ioniq 9

Base Price: $60,555
Range: 311-335 miles
Drive Type: Rear or all-wheel drive

The Ioniq 9 came out this year, bringing the EV9's winning formula to the Hyundai brand's lineup. It has tons of space for people and things, over 300 miles of range in every trim and a unique, van-like look. After testing the Ioniq 9 during a first-drive event this year, I called it the "ultimate family EV." I was particularly impressed by its high-quality feel inside. Granted, that test car pushed $80,000. 

Like the EV9, the only real downside here is price. A $7,500 tax credit could help defray that. 

Read our first-drive review of the 2026 Hyundai Ioniq 9

Best Luxury EVs

Cadillac Optiq

2025 Cadillac Optiq

Base Price: $54,390
Range: 302 miles
Drive Type: All-wheel drive

I liked the Cadillac Optiq a lot when I first tested it for a few hours at the EV's launch event. More recently, I spent a week using it as my daily driver in the Bay Area. And that longer test only cemented my earlier conclusion: The Optiq is the whole package. 

It's a great size, has charmingly stubby looks and feels luxurious inside. Cadillac took key parts of its more expensive Lyriq and Escalade IQ, and gave them a home here. I'm talking things like genuine metal door pulls, stainless steel speaker grates and a curved screen with bright, crisp graphics. 

It's also a serious contender without any options. In every Optiq, you get over 300 miles of EPA-estimated range. You also get General Motors' wonderful Super Cruise hands-free driving system as standard equipment. That helps to eat up the highway miles with far less fatigue, and it's well worth the $25 per month if you drive a lot.

And, a cherry on top: The Optiq comes with Dolby Atmos, a kind of enhanced surround-sound audio system that may be one of the best tech features in the auto industry right now. Music mixed specifically for Dolby Atmos systems can sound like it's coming from all directions. There could be a singer up front, drums behind, a cymbal from the top left and a sound effect bouncing from side to side. It's hard to explain, but very compelling in person.

Read our first-drive review of the 2025 Cadillac Optiq

Cadillac Lyriq

Cadillac Lyriq

Base Price: $60,090 
Range: 319-326 miles
Drive Type: Rear- or all-wheel drive

Cadillac has quietly become a force in the luxury EV space. And the Lyriq is the tip of the spear. 

It's eye-catching, quiet, comfortable and delivers range for days. GM's latest user interfaces, while not near the level of Tesla's, are responsive and offer a lot of useful functions. Instead of some clunky, automotive-grade app, Google Maps serves as the built-in navigation system. And you can even have the map take over the whole digital instrument cluster. 

The Lyriq's appealing package is why it's beating out most luxury rivals on the sales charts.

Read our full review of the Cadillac Lyriq.

The Best Electric Truck: 2025 Ford F-150 Lightning

2025 Ford F-150 Lightning.

Base Price: $66,235 
Range: 240-320 miles
Drive Type: All-wheel drive

We recommend a few electric pickup trucks, but only one qualifies for the EV tax credit: the Ford F-150 Lightning. 

The thing to know about electric pickups in general is that they're not a good value compared to hybrid or combustion counterparts. There's no such thing as a cheap electric pickup, but the F-150 Lightning with the extended-range battery pack is a compelling package. 

Unlike, say, a Rivian R1T or a Tesla Cybertruck, it'll feel totally familiar to anybody who's coming from a gas-powered F-150. All manner of accessories for the regular F-150 should bolt right onto the electric one too. Range is solid and charging speeds are improved as well. 

Read our coverage of the Ford F-150 Lightning.

Best Electric Sedan: 2025 Tesla Model 3 

The Tesla Model 3 Performance

Base Price: $42,490 
Range: 298-363 miles.
Drive Type: Rear or all-wheel drive

The Model 3 is the world's original mainstream EV. And it still holds up, especially after a refresh that Tesla rolled out early last year. Much like the Model Y, the Model 3 offers an appealing combination of powerful technology, regular software updates, great range, excellent charging speeds and access to the vaunted Supercharger network. The recent refresh provided a much-needed visual update, efficiency gains and a spruced-up interior. 

If you're the type that prefers some physical buttons over Tesla's touchscreen-heavy interface, consider other great electric sedans like the Hyundai Ioniq 6 and Lucid Air. Neither of those qualify for the EV tax credit, however. One other drawback to the new Model 3: Instead of a regular turn-signal stalk, it uses steering wheel-mounted buttons, which take some getting used to. 

Read our full review of the Tesla Model 3

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