The 2026 Hyundai Ioniq 5 Gets Up To $9,800 Cheaper As Tax Credits End

• The 2026 Hyundai Ioniq 5 will be thousands of dollars cheaper.
• The current model year Ioniq 5 posted record sales in September and the third quarter.
• Hyundai said it will continue offering discounts on the 2025 Ioniq 5 in October.

Hyundai is offering a massive U.S. price cut on the model year 2026 Ioniq 5 as it strives to continue its electric vehicle sales momentum in a post-tax-credit world.

The automaker said certain trims of the 2026 Ioniq 5 will be cheaper by as much as $9,800. If Hyundai applies that to the entry-level trims, the price of the electric crossover should start in the low $30,000s, which could make it extremely competitive against rivals such as the Tesla Model Y and the Chevy Equinox EV. Hyundai has not yet specified which trims will see the reductions.

The model year 2025 Ioniq 5, which is currently on sale, starts at $42,600 for the basic SE Standard Range model. The Ioniq 5 is Hyundai’s best-selling EV and among the most popular electric crossovers in the U.S. It gets more than 300 miles of range in some trim levels and is among the fastest-charging EVs on the market. It also now gets a Tesla-style charging plug for seamless Supercharger access.

But contributing to its appeal were also Hyundai’s aggressive leasing offers and discounts enabled by the now-dead $7,500 tax credit. So in addition to the price cut for the 2026 Ioniq 5s, model year 2025 vehicles will continue to benefit from the $7,500 cash incentive in October, the automaker said.

“These changes reflect Hyundai’s commitment to affordability and its long-term EV strategy, including U.S. production at Hyundai Motor Group Metaplant America and a focus on growing sales volume and market share,” Hyundai said in a press release. “Ongoing sales momentum has enabled cost efficiencies that benefit customers, showcasing Hyundai’s financial strength and ability to navigate market uncertainty.”

Clearly, Hyundai wants to keep the sales momentum going. As the federal tax credit expired on Sept. 30, buyers rushed to claim the credit and drove home a record number of EVs in the third quarter and in September.

Hyundai said its Q3 EV sales jumped 100%, with the Ioniq 5 accounting for nearly 21,999 sales, up from 11,590 during the same period last year. In September alone, Hyundai sold $8,408 Ioniq 5s, a 152% year-over-year growth.

Analysts have projected a slowdown in EV sales going forward, but automakers are trying to prevent a sudden drop off with discounts and offers for extended periods. General Motors and Ford, for instance, have found a way to extend the $7,500 tax credit till the end of the year, with their financing arms making down payments on dealer inventory before the tax credit expiry.

Hyundai’s approach, however, signals a longer-term play. By cutting prices on future models while keeping incentives alive for current ones, the automaker is positioning the Ioniq 5 to remain one of the most attractive EVs well into next year.

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