In Canada, EV rebates are available to car buyers who purchase a battery electric vehicle (BEV) or a plug-in hybrid electric vehicle (PHEV). The federal government offers rebates of up to $5,000 to people who purchase an EV or PHEV anywhere in Canada, while five of Canada’s 10 provinces offer additional rebates as of early 2023 that can be stacked with the federal rebates for additional savings.
Several brands sell vehicles that qualify for both federal and provincial rebates, including Hyundai, Kia, Toyota, Ford, Chevrolet, Nissan, Volkswagen, Tesla, and even luxury automakers like Audi, BMW, Lexus, and others. Here’s a closer look at how Canada EV rebates work.
EV Rebates in Canada
- How to Get an EV Rebate in Canada
- EV Rebates in British Columbia
- EV Rebates in Quebec
- EV Rebates in New Brunswick
- EV Rebates in Prince Edward Island
- EV Rebates in Nova Scotia
- Provinces without EV Rebates
- EV Rebates for Commercial Use
How to Get an EV Rebate in Canada
To receive the federal EV rebate, Canadians must buy or lease a new electric vehicle or plug-in hybrid from a dealership. The iZEV rebate program administered by Transport Canada only applies to new vehicles, meaning those that have never been registered for a licence plate. The dealership will take care of the paperwork, meaning the price you pay for the vehicle will already have the rebate applied without any extra steps required from you.
To qualify, you must purchase an EV or PHEV with a base model price of less than $55,000 and an actual manufacturer’s suggested retail price (MSRP) of not more than $65,000 for passenger cars, or base price of less than $60,000 and an actual cost of not more than $70,000 for wagons, pickup trucks, SUVs, minivans, or vans. Individuals may access the federal rebate program once per calendar year. The full list of vehicles that qualify for the federal iZEV rebate can be found on the Transport Canada website.
While all provincial programs allow their EV rebates to be stacked with the federal EV incentives, the vehicles that qualify and ways to claim EV rebates can vary widely between jurisdictions.
EV Rebates in British Columbia
In B.C., EV rebates are income-based: if you earn less than $80,000 then you may qualify to receive up to $4,000 back when you buy or lease an EV or a long-range PHEV or up to $2,000 back on the purchase of a short-range PHEV. If you earn more than $100,000 then you are not eligible for rebates, and there are several tiers of rebates for incomes between those two points.
Vehicles purchased under the CleanBC Go Electric program must be new vehicles, and you must be pre-approved for a provincial rebate before you complete your purchase. With that pre-approval in hand, the selling dealership will apply the value of the rebate against your purchase. Each B.C. resident can only receive one rebate through the provincial program’s lifetime.
Used electrified vehicles do not qualify for B.C.’s EV incentive program, but you don’t pay provincial sales tax when you buy them.
More information on B.C.’s provincial EV rebate can be found here.
EV Rebates in Quebec
Quebec’s electric vehicle rebates are the most generous in the country. Electric vehicle purchases or leases may qualify for a rebate of up to $7,000 for a new BEV and $5,000 for a new PHEV, provided the purchase price is less than $65,000. Quebec also offers up to $7,000 back on the purchase of a hydrogen fuel cell vehicle.
To qualify, the vehicle must never have been plated. Buyers can claim the rebate by registering online at the Transition Energetique website and then proceeding to a car dealership. When you purchase a new EV or PHEV, most dealerships will confirm your user profile and complete the rebate application for you, then apply the rebate directly to your price before you finish the purchase. Some dealers and manufacturers (most notably Tesla) will not complete this process for you, and you will need to complete the rebate application on your own and wait to receive it by cheque in the mail.
For more information about Quebec’s provincial EV rebate program visit this guide on the Gouvernement du Québec website.
Used electrified vehicles can also qualify for rebates of up to $3,500 under Quebec’s program under very specific conditions, including that it can never have been registered in Quebec before. More details on the used vehicle rebate program in Quebec are available here.
EV Rebates in New Brunswick
Rebates are available to New Brunswick residents who buy or lease a new or used electric vehicle or PHEV from a licenced dealership within the province. New BEVs and long-range PHEVs qualify for rebates of $5,000, while short-range PHEVs and used BEVs receive $2,500. Used PHEVs receive $1,000. Buyers who qualify for these rebates also qualify to receive $750 toward the purchase and installation costs of Level 2 home EV charging stations. New Brunswick’s eligible vehicles and price thresholds match those of the federal program, and rebates are applied to the purchase price by the dealership at the time of the sale.
More details on New Brunswick’s EV rebate program can be found here.
EV Rebates in Prince Edward Island
Residents of Prince Edward Island receive a $5,000 rebate on the purchase or lease of new or used electric cars or $2,500 for a new or used PHEV. Regardless of the vehicle type, Islanders also receive a $750 incentive that can be used to purchase and install a Level 2 home charging station or toward charging costs if an EV charger can’t be installed at their residence. Purchases must be made at a licenced dealership, and the rebate amount will be deducted from the price of the vehicle at the point of sale. If you purchase your vehicle off-island, you can apply for the provincial rebate when you register and plate the vehicle in PEI. Vehicle eligibility and price thresholds match those of the federal program, though PEI’s program does not distinguish between PHEV battery size or electric range when determining the rebate amount.
More details on PEI’s EV rebate program can be found here.
EV Rebates in Nova Scotia
Under the Electrify Nova Scotia rebate program, residents of the province can receive up to $3,000 back on the purchase or lease of a new BEV or PHEV and up to $2,000 back on the purchase or lease of a used EV or PHEV. The qualifying vehicles align with those of the federal iZEV rebate program, and the vehicle must be purchased at a licenced Nova Scotia car dealership that will apply the rebate to the price at the point of sale. Individuals can qualify for one rebate on a new vehicle and one rebate on a used vehicle per calendar year.
More details on Nova Scotia’s EV rebate program can be found here.
EV Rebates in Newfoundland and Labrador
Newfoundland and Labrador’s provincial EV rebate program expired at the end of March 2023 but may be extended at a later date.
Provinces without EV Rebates
As of April 2023, the provinces of Alberta, Saskatchewan, Manitoba, Ontario, and Newfoundland and Labrador, and the territories of Yukon, Northwest Territories, and Nunavut do not offer territorial or provincial incentives.
EV Rebates for Commercial Use
Businesses and provincial/territorial and municipal governments that operate fleets can qualify for the federal government of Canada’s iZEV rebate program under the same terms as those for individuals up to a limit of 10 vehicles per calendar year. Tax write-offs are also available to businesses for zero-emission vehicles (ZEVs), but only when purchases are made without accessing the iZEV rebate program.
All of the provincial programs listed above permit businesses to access rebates, though there are restrictions on the number of vehicles that can be purchased per calendar year in some instances. See the information pages linked above for more information.
Frequently Asked Questions (FAQs):
Does Canada have an EV rebate?
Yes, Canada has a program at the federal level that provides EV rebates called the Incentives for Zero-Emission Vehicles (iZEV) Program. Some provinces offer EV rebates in addition to the federal rebate.
What is the EV tax credit for 2023 Canada?
Canada does not offer tax credits for individuals who purchase EVs. Instead, rebates are offered that reduce the price of an EV or PHEV at the time of purchase.
Is Ontario getting an EV rebate?
As of early 2023, there are no indications that the Ontario government plans to reinstate its provincial EV rebate program. However, as with all Canadians, Ontario residents qualify for the federal iZEV program.
How long will Canada EV rebate last?
The federal iZEV rebate program is scheduled to expire on March 31, 2025, or whenever its allocated funding has been exhausted.
Who can apply for the EV rebate?
All Canadians qualify for federal incentives for electric vehicles, and all residents of the provinces where EV rebates exist qualify for those rebates, provided they meet the rest of the program qualification requirements.