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

Plus, Hyundai will continue offering discounts on the current Ioniq 5 through October.

Hyundai Ioniq 5 XRT

Photo by: Patrick George

Suvrat Kothari

By: Suvrat Kothari

Updated: Oct 1, 2025 at 7:26pm ET

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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.

Update: This article has been updated with detailed pricing for the 2026 Ioniq 5.

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

The automaker said on Wednesday that the 2026 Ioniq 5 will be cheaper on average by $9,155, and by a maximum of $9,800 on the SEL rear-wheel-drive and all-wheel-drive trims. The Standard Range RWD will now start at $35,000 (down from $42,600) which makes it extremely competitive against rivals such as the Tesla Model Y and the Chevy Equinox EV.

Here's the full pricing for the 2026 Hyundai Ioniq 5:

Model Motor 2025 MSRP 2026 MSRP Price Reduction SE RWD Standard Range 125 kW (168 hp) $42,600

$35,000

$7,600 SE RWD 168 kW (225 hp) $46,650 $37,500 $9,150 SEL RWD 168 kW (225 hp) $49,600 $39,800 $9,800 Limited RWD 168 kW (225 hp) $54,300 $45,075 $9,225 SE AWD 74 kW + 165 kW (320 hp) $50,150 $41,000 $9,150 SEL AWD 74 kW + 165 kW (320 hp) $53,100 $43,300 $9,800 XRT AWD 74 kW + 165 kW (320 hp) $55,500 $46,275 $9,225 XRT AWD with tow hitch 74 kW + 165 kW (320 hp) $55,950 $46,725 $9,225 Limited AWD 74 kW + 165 kW (320 hp) $58,200 $48,975 $9,225

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.

2025 Hyundai Ioniq 5 XRT, Limited

Photo by: Hyundai

“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.

2025 Hyundai Ioniq 5 XRT, Limited

The Ioniq 5 now gets a Tesla-style charging port right from the factory for seamless Supercharger access.

Photo by: Hyundai

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.

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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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