Are Electric Vehicles Still Worth the Cost Without Federal Tax Credits?

Higher Gas Prices Strengthen the Case for EVs, but Depreciation, Charging Access and State Fees Complicate the Math

The financial case for buying an electric vehicle changed significantly when the federal government ended the $7,500 new EV credit and $4,000 used EV credit on September 30, 2025. For households financing a vehicle, the loss of several thousand dollars in purchase assistance can determine whether an electric model remains affordable.

However, the disappearance of federal incentives does not necessarily mean EVs are no longer cost-effective. Gasoline prices climbed sharply in 2026, electric vehicles continue to require less routine maintenance, and some states still offer purchase incentives worth thousands of dollars.

An analysis by Attorney Brian White found that the true cost of EV ownership depends on far more than the sticker price. Depreciation, collision repairs, charging location, temperature, state registration fees and access to workplace charging can all change the equation.

For some drivers, particularly those who can charge at home, an EV may continue to produce meaningful savings. For others who depend on public fast chargers or live in states with limited infrastructure and high annual fees, the cost advantages can quickly narrow.

Depreciation Remains the Largest Financial Risk

Depreciation is typically the largest five-year vehicle ownership expense in the United States, exceeding fuel, maintenance and insurance costs combined.

Across all vehicle types, the average vehicle loses approximately 45% to 46% of its value over five years. Gasoline vehicles typically lose between 40% and 50%, while EVs commonly depreciate by 55% to 60%.

Average Five-Year Vehicle Depreciation

The depreciation gap is one of the strongest arguments against EV ownership, particularly for drivers who expect to sell or trade their vehicle within five years.

Rapid advances in battery range, charging speed and driver-assistance systems can make older electric models appear outdated more quickly than gas-powered vehicles. First-generation models from less-established manufacturers can be especially vulnerable when buyers question battery longevity, repair access or long-term brand support.

The picture is not uniform, however. Newer long-range EVs with stronger warranties and better charging compatibility are retaining value more successfully. Some of the strongest-performing electric models now lose only 30% to 40% of their value over five years.

EV Maintenance Is Cheaper, but Collision Repairs Cost More

Electric vehicles require fewer routine services because they do not need oil changes, exhaust repairs or many engine-related replacements.

EV owners generally spend approximately $150 to $300 annually on basic maintenance, compared with $900 to $1,800 for many gasoline vehicles.

That can make routine EV maintenance between 35% and 50% cheaper.

Typical Ownership Cost Differences

The savings become less certain following a crash. EV collision repairs currently cost approximately 20% more than repairs to comparable gasoline vehicles. Repair costs could rise to 30% above gas-vehicle costs by 2027 because of expensive battery systems, specialized labor and large structural components.

Battery replacement remains a common concern among prospective buyers, but most EV batteries are protected by warranties lasting eight to 10 years or approximately 100,000 miles. That reduces the likelihood of a major battery expense during the early years of ownership.

Gas Prices Have Shifted the Cost Comparison

The cost advantage of gasoline vehicles weakened considerably in 2026.

The national average gas price reached $4.50 per gallon on May 12, 2026, up 43.6% from $3.14 one year earlier. Average prices had climbed from $2.91 in February to $3.64 in March and $4.10 in April.

By May 28, the national average remained elevated at $4.43 per gallon.

Highest State Gas Prices

Lowest State Gas Prices

Every state recorded a double-digit annual increase. Ohio experienced the largest rise at 57.2%, followed by New Hampshire at 56% and Michigan at 53.8%.

Some metro areas reported even steeper increases:

• Springfield, Ohio: 71%
• Dayton, Ohio: 64.4%
• Covington, Kentucky: 63%

High gas prices can make EV operating expenses appear increasingly attractive, but charging method remains critical.

Home Charging and Public Charging Produce Very Different Costs

Most prospective EV owners, approximately 79%, expect to charge primarily at home. That preference is financially significant because home charging is usually much cheaper than relying on public fast chargers.

Research comparing EVs with hybrids found that operating costs changed dramatically based on charging location and weather.

EV Costs Per 1,000 Miles in Cold Weather

At 20°F, an EV charged at home cost $36.19 less per 1,000 miles than a hybrid. An EV dependent on public charging cost $86.26 more.

At 95°F, an EV remained $46.11 cheaper than a hybrid when charged at home but became $41 more expensive when charged publicly.

The national average public charging price stood at approximately $0.42 per kilowatt-hour in May 2026, but rates differed substantially by state.

Public Charging Prices by State

An EV driver in West Virginia therefore faces a substantially different ownership equation from one in Kansas, even before registration fees and available tax incentives are considered.

Cold Weather Can Cut EV Range by 39%

Temperature is another major ownership factor.

At 20°F, EVs can lose 35.6% of their efficiency and 39% of their driving range. Charging can also take longer because cold batteries accept power more slowly.

Extreme heat produces smaller but still measurable losses.

Temperature-Related Performance Changes

Drivers in cold regions may need to plan additional charging stops during winter. That adds not only energy costs but also time.

Consumer research found that most EV owners are willing to wait 21 to 40 minutes for a fast charge, considerably longer than a typical gasoline stop.

Charger Access Varies Dramatically Across the Country

EV ownership is considerably easier in states with dense charging networks.

California had 28,393 public and commercial charging stations in 2026, more than 660 times Wyoming’s total of 43.

Infrastructure is not only a rural concern. A study of nearly 6 million residents in the San Francisco Bay Area found drivers had only 5.2 hours of feasible fast-charger access per day, demonstrating that high charger counts do not automatically guarantee convenient availability.

State Incentives and Fees Can Change the Result

Although federal credits ended, 17 states continued to offer EV incentives, ranging from $1,500 in Rhode Island to as much as $7,500 in Oregon and Maine.

At the same time, 40 states imposed additional annual registration fees on EVs and some hybrids. Fees ranged from $50 in Hawaii and South Dakota to $260 in New Jersey.

Eleven states combined an EV purchase incentive with a higher registration fee.

Recent policy changes included:

• Tennessee increased its EV registration fee from $100 to $200.
• Kansas raised its fee from $70 to $165.
• Indiana increased its fee from $150 to $230.
• Nebraska doubled its fee from $75 to $150.
• Wisconsin raised its fee from $100 to $175.
• North Carolina increased its fee from $140.25 to $214.50.

Georgia, Iowa, Kentucky and Oklahoma also tax electricity sold through public charging stations.

Other states are testing mileage-based road funding. Oregon, Utah, Virginia and Hawaii allow participating EV drivers to pay based on miles traveled rather than a standard annual fee.

Workplace Charging Could Become a Major Ownership Benefit

Only 15% of surveyed employees currently receive zero-emission transportation benefits through their workplace, but interest is considerably higher.

Among employees without workplace charging:

• 98% expressed interest in having it available
• 91% wanted employer assistance for buying or leasing an EV
• Workers also supported home-charging discounts, public charging memberships and transit incentives

Free workplace charging can reduce or eliminate commuting energy expenses for some employees. Employers are increasingly treating chargers as a recruiting and retention benefit similar to free parking or commuter assistance.

Research also found that 61% of large enterprises without EV fleets were preparing to introduce electric vehicles, workplace chargers or home-charging support.

The EV Decision Now Depends on the Driver

The Attorney Brian White analysis found that EVs can still be financially worthwhile after the loss of federal credits, but the result depends heavily on individual circumstances.

An EV is more likely to provide savings when a driver:

• Can charge at home
• Lives in a state with lower electricity costs
• Has access to state incentives
• Plans to keep the vehicle long enough to recover upfront costs
• Drives enough miles to benefit from lower energy and maintenance expenses
• Has reliable workplace or residential charging

The calculation becomes less favorable for drivers who rely on expensive public charging, live in cold climates, pay high annual EV fees or expect to resell the vehicle after only a few years.

The end of federal tax credits removed one of the clearest EV advantages. However, high gas prices, lower maintenance expenses and expanding charging benefits mean the answer is not simply that electric vehicles have become too expensive. The more accurate conclusion is that EV value has become increasingly dependent on location, charging habits and length of ownership.