Texas EV Incentive and Rebate Savings Calculator
Estimate your total savings when purchasing or leasing an electric vehicle in Texas, combining federal tax credits, Texas utility rebates, fuel savings, and maintenance cost reductions.
Your federal income tax owed before credits (limits usable federal credit)
Used to determine federal credit income eligibility
Check with your Texas utility (e.g., Oncor: $250, Austin Energy: $1,200, CPS Energy: $250)
Texas average ~$0.12/kWh; check your utility bill
Typical range: 3.0–4.5 mi/kWh (e.g., Tesla Model 3 ≈ 4.0, Chevy Bolt ≈ 3.5)
Formulas Used
Federal EV Tax Credit (IRA 2022):
- New BEV/PHEV: Credit = min($7,500, Federal Tax Liability) — subject to income & MSRP caps
- Used EV: Credit = min(Vehicle Price × 30%, $4,000, Federal Tax Liability) — vehicle price ≤ $25,000
Annual Fuel Savings:
Gas Cost = (Annual Miles ÷ MPG) × Gas Price per Gallon
EV Cost = (Annual Miles ÷ EV Efficiency in mi/kWh) × Electricity Rate per kWh
Fuel Savings = Gas Cost − EV Cost
Annual Maintenance Savings:
Maintenance Savings = Annual Miles × $0.06/mile
Total N-Year Net Savings:
Grand Total = Federal Credit + Utility Rebate + (Fuel Savings × Years) + (Maintenance Savings × Years)
Assumptions & References
- Federal Tax Credit: Based on the Inflation Reduction Act (IRA) of 2022, effective January 1, 2023. New clean vehicle credit: IRC §30D; Used clean vehicle credit: IRC §25E. Credit is non-refundable and cannot exceed your federal tax liability. IRS §30D
- Income Limits (New EV): Single/MFS ≤ $150,000; Head of Household ≤ $225,000; Married Filing Jointly ≤ $300,000 MAGI.
- Income Limits (Used EV): Single/MFS ≤ $75,000; HoH ≤ $112,500; MFJ ≤ $150,000 MAGI.
- MSRP Caps: Vans, SUVs, pickup trucks ≤ $80,000; all other vehicles ≤ $55,000. Verify your specific model at fueleconomy.gov.
- Texas State Incentives: Texas has no universal statewide EV purchase rebate as of 2024. The AirCheckTexas Drive a Clean Machine program offers up to $3,500 for income-qualifying residents. TCEQ AirCheckTexas
- Utility Rebates: Vary by provider. Examples: Oncor ~$250, Austin Energy up to $1,200, CPS Energy ~$250, Entergy Texas varies. Contact your utility for current offers.
- Maintenance Savings: ~$0.06/mile based on Consumer Reports (2020) and AAA studies showing EVs save $800–$1,200/year vs. comparable ICE vehicles at 15,000 miles/year.
- Electricity Rate: Texas average residential rate ~$0.12/kWh (EIA, 2023). Rates vary significantly by utility and time-of-use plan.
- This calculator provides estimates only. Consult a tax professional for personalized federal credit eligibility. Actual savings depend on driving habits, utility rates, and vehicle model.