Hyundai Cuts Ioniq 5 Pricing and Extends Discounts As Tax Credits Die
Federal EV tax credits ended a few days ago, which led to a buying frenzy as people rushed to grab an electric model before the incentives expired. Hyundai’s EVs were not eligible for the credits due to their foreign build locations and other factors, but it offered deep incentives to compensate. The automaker will continue offering discounts going forward, even as the tax credits disappear, as it recently announced significantly lower prices for the 2026 Ioniq 5.
Hyundai extended its in-house $7,500 discount through October for 2025 model-year EVs, but the upcoming Ioniq 5 lands with price cuts that reach $9,800 on some variants. All models saw a price decrease, with the entry-level SE Standard Range RWD trim seeing the smallest cut, at $7,600.
The discounts will almost certainly help sell Ioniq 5s, but they’re also a refreshing development that comes at a time when all vehicles feel extremely pricey, even gas models. The new range-topping Limited AWD trim costs $50,575 after destination, and it offers 320 horsepower and a load of other features, and its $9,225 discount makes it feel like a solid value.
Hyundai hasn’t released pricing for the 2026 Ioniq 6 sedan yet, but it is a year newer and may not receive similar discounts. The Ioniq 9 is all-new for 2026 and starts at around $59,000 and is not discounted.
[Images: Hyundai]
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Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.
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Wait. So you are telling me that gubment incentives didn’t actually save people money??? Then what possible purpose could we have spent all that tax money for???? Lol
No worries, Newsom will have a Kalifornia state-sponsored EV credit... oh, wait...
In November, the governor pledged that he would replace the federal government’s electric vehicle purchasing credit with a state version, should Trump cancel the $7,500-per-new-car benefit. Trump did so, meaning electric vehicles will become much more expensive for Americans after Sept. 30. Now, it turns out that relief isn’t actually on its way for Californians — Newsom said Friday that his administration won’t be replacing the popular rebates.