By 2035, all new cars sold in Canada will be zero-emission vehicles. If you’re thinking about switching to an EV or hybrid, the federal EV rebate in Canada and several provincial incentives make buying an electric vehicle more affordable.
Keep reading for a full guide to Canada EV rebates and how much you could save when buying your next car.
What is the federal EV rebate in Canada?
The federal government’s Incentives for Zero-Emission Vehicles program (iZEV) provides point-of-sale incentives to help make buying or leasing a zero-emission vehicle more affordable. It applies to the initial purchase or lease of any new zero-emissions vehicle (ZEV), including battery-electric vehicles (BEVs), plug-in hybrid vehicles (PHEVs) and hydrogen fuel cell vehicles (FCVs).
The federal EV rebate in Canada offers up to $5,000 to the first registered owner of a battery-electric, hydrogen fuel cell or longer-range plug-in hybrid vehicle. Shorter-range plug-in hybrid electric vehicles are eligible for an incentive of $2,500.
Which vehicles are eligible for a Canada EV rebate from the federal government?
There are more than 220 iZEV eligible vehicles to choose from. For a vehicle to be eligible for federal Canada EV rebates, it must meet a few basic requirements.
Passenger car: Must have a base model MSRP of less than $55,000. Higher-priced trims with MSRPs up to $65,000 are also eligible.
Station wagon, pickup truck, SUV, minivan, van or special purpose vehicle: Must have a base model MSRP of less than $60,000. Higher-priced trims with MSRPs up to $70,000 are also eligible.
To qualify for a rebate, the vehicle needs to be purchased or leased for at least 12 months. Check the full list of iZEV eligible vehicles on the Canadian government’s website.
Provincial EV rebates in Canada
Several provincial governments across Canada also offer EV rebates. These provincial programs can be combined with the federal iZEV Program to maximize your possible savings when buying an electric vehicle.
Check out the table below for a province-by-province breakdown of available EV incentives. Currently, Ontario, Manitoba and Saskatchewan do not offer provincial rebates.
Province
Rebate
Amount
Details
British Columbia
Go Electric
BEVs and long-range PHEVs
$4,000 if your individual annual income is less than $80,000.
$2,000 if your income is $80,001 – $90,000.
$1,000 if your income is $90,001 – $100,000.
PHEVs with range of less than 85km
$2,000 if income is less than $80,000.
$1,000 if your income is $80,001 – $90,000.
$500 if your income is $90,001 – $100,000.
Home charging stations
Up to 50% (max. $350) of the cost of installing a level 2 charging station at home.
No rebate available if your income is above $100,000.
Station wagons, mini-vans, SUVs, small and standard pickup trucks and passenger vans must have a maximum MSRP of $70,000.
Manitoba
Electric Vehicle Incentive Program
$4,000 for a new BEV or PHEV.
$2,500 for a used BEV or PHEV.
Vehicle must be less than 4 years old and have an MSRP of less than $70,000.
Vehicle must be purchased or leased through a Manitoba dealership.
New Brunswick
Plug-In NB Rebate Program
$5,000 for a new BEV or long-range (greater than 50km) PHEV.
$2,500 for a new short-range (less than 50km) PHEV or used BEV.
$1,000 for a used PHEV.
50% of the cost (max. $750) of buying and installing a new level 2 EV charger.
Rebate for new vehicles is available for iZEV eligible vehicles.
Eligible used vehicles must be purchased from a dealer licensed in New Brunswick and be priced between $10,000 and $60,000 for a used BEV or between $10,000 and $50,000 for a used PHEV.
Newfoundland and Labrador
EV Rebate Program
$2,500 for a new or used BEV.
$1,500 for a new or used PHEV.
Vehicle must be purchased in Newfoundland and Labrador from a licensed vehicle dealership.
Eligible models are listed on the Natural Resources Canada Fuel Consumption Ratings search tool in the ‘Plug-in hybrid electric vehicles’ and ‘Battery-electric vehicles’ categories.
Nova Scotia
Electrify Nova Scotia Rebate Program
$3,000 for a new BEV or long-range PHEV.
$2,000 for a new short-range PHEV.
$2,000 for a used BEV.
Up to $1,000 for a used PHEV.
$500 for a new e-bike.
New BEVs and PHEVs must be on the federal government’s iZEV-eligible vehicles list.
Used BEVs must be priced between $10,000 and $55,000.
Used PHEVs must be priced between $10,000 and $40,000.
E-bikes must be priced between $1,200 and $10,000.
Prince Edward Island
PEI Universal EV Incentive
$5,750 for new and used BEVs.
$3,250 for new and used PHEVs.
$750 to buy and install a level 2 charger or help cover charging costs.
Rebate for new vehicles is available for iZEV-eligible vehicles.
Keep in mind that the Canada EV rebates listed above might change depending on program availability. The federal program was scheduled to end on March 31, 2025, but it was extended in the April 2024 federal budget and no new cut-off date was announced. Provincial incentives are constantly being revised based on available funding and program duration.
How to claim an EV rebate in Canada
The federal government EV rebate is a point-of-sale incentive. So if you’re buying an eligible vehicle, the dealership will apply the rebate at the time of purchase.
The process for claiming a rebate from your provincial government varies depending on where you live. For example, if you live in Manitoba, the rebate will be provided once you register your EV with Manitoba Public Insurance. But if you live in British Columbia, you’ll need to apply online and get pre-approved before buying your vehicle.
Check with the body that administers your province’s EV rebate program to find out how to get a rebate. While you’re there, check any other special eligibility requirements that apply. For instance, most programs will require you to purchase your vehicle from a licensed dealer in that province to qualify for a rebate. However, Prince Edward Island residents can purchase from an on- or off-island dealership.
Frequently asked questions about Canada EV rebates
Your rebate should be applied at point-of-sale (at the dealership or online) directly on the bill of sale or lease agreement. Your dealership will be responsible for completing the documentation required to receive the incentive.
No, there is no income limit for the federal government's iZEV Program.
No, Ontario's provincial government does not offer any EV incentives or rebates. However, Ontario residents can still qualify for a rebate under the Government of Canada's iZEV Program.
As of June 2024, the Ontario government has not announced any plans to reintroduce provincial EV incentives.
Yes. Plug-in hybrid vehicles (PHEVs) are eligible for rebates under the federal government's iZEV Program and provincial rebate programs. However, the size of the rebate you qualify for might vary depending on the electric range of the vehicle you purchase.
Yes, Nova Scotia residents can get a maximum rebate of $3,000 under the Electrify Nova Scotia Rebate Program. Combined with the federal government's iZEV rebate program, you could save up to $8,000 on the purchase of a new EV.
Yes. The Plug-In NB Rebate Program allows New Brunswick residents to access a maximum rebate of $5,000 on a new BEV or long-range PHEV. Combined with the federal government's iZEV rebate program, you could save up to $10,000 when purchasing a new EV.
Tim Falk is a freelance writer for Finder. Over the course of his 15-year writing career, he has reported on a wide range of personal finance topics. Whether you're investing in stocks and ETFs, comparing savings accounts or choosing a credit card, Tim wants to make it easier for you to understand. When he’s not staring at his computer, you can usually find him exploring the great outdoors. See full bio
Jaclyn Hurst is an associate publisher at Finder. She has a Bachelor’s degree in Business from Redeemer University and a University Certificate in Management Foundations from Athabasca University. She’s as passionate about business and finance as she is about the great Canadian outdoors, organic Sumatra coffee and music. See full bio
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