Save up to $4,000 with the Used EV Tax Credit

The Used Electric Vehicle (EV) Federal Tax Credit can help you save up to $4,000 on your next pre-owned electric car.

Coming soon: Carvana will make it easier to save by applying these tax credits to eligible vehicles at checkout. The federal used EV tax credit could help you get the EV you want for less.

Note: The IRS refers to the used EV tax credit as the “previously-owned clean vehicle credit.” We’ll refer to it as the “used EV tax credit” for ease of use.

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A vehicle advertising $4,000 tax credit

How the Federal Used EV Tax Credit Works

To qualify for the federal used EV tax credit, both the buyer and the vehicle they’re purchasing need to meet specific qualifications established by the federal government and codified in the Inflation Reduction Act. Carvana makes it easy to understand which vehicles may qualify for the credit. Just look for the “EV Credit” badge while you search or view individual vehicles as you shop.

Currently, tax filers must file Form 8936 with the IRS to claim a used EV tax credit, which they can then apply to reduce their federal tax liability.

Coming soon, qualified customers who purchase a qualified vehicle with Carvana have the option to apply the value of their tax credit directly towards their new ride at the time of purchase, rather than waiting to claim the credit at tax time.

Dealers must register with the IRS to allow qualified customers to apply the federal used EV tax credit to the purchase price of the vehicle, so not every dealer will offer this alternative way to take advantage of this tax credit.

How to find eligible EV Tax Credit vehicles on our site

A person using on their phone to search for vehicles that are eligible for the EV tax credit
  1. Find the “Great Deals” filter on your Search page
  2. Select EV Tax Credit and apply filters
  3. Look for the EV Credit badge on eligible vehicles
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A family loading their EV for a trip

Are You Qualified for the EV Tax Credit?

If your modified adjusted gross income (MAGI) exceeds the following amounts, you won’t qualify for the used EV tax credit:

  • $112,500 for heads of household
  • $150,000 for joint filers or spouses
  • $75,000 for all other filers

In addition to meeting the MAGI requirements, you must:

  • Buy the car for personal use, not for resale
  • Not be a dependent on someone else’s tax return
  • Not have claimed another used EV tax credit within the last three years
  • Not be the original owner of the vehicle you purchase.
Buyers who wish to take advantage of the federal used EV tax credit will need to attest that they meet the qualifications and income limits above.

How Do Vehicles Qualify for the EV Tax Credit?

A used EV must meet a number of qualifying criteria to be eligible for the used EV tax credit.

To qualify for the federal used EV tax credit, the vehicle must:

  • Have a sale price of $25,000 or less, including non-government fees (e.g., shipping and delivery fees); and
  • Be manufactured at least two years prior to the year of purchase (so for 2024, only cars made in 2022 and earlier qualify).

Additionally, the vehicle must:

  • Be a Fuel Cell Vehicle or plug-in EV with a battery capacity of at least 7 kilowatt hours;
  • Be bought for use primarily within the U.S.;
  • Have a gross vehicle weight rating of less than 14,000 pounds;
  • Have not been purchased by another individual since August 16, 2022.

What Vehicles Qualify for the Federal Used EV Tax Credit?

To see a list of every EV that currently qualifies for a federal used EV tax credit, visit

Frequently Asked Questions

Have more questions about the EV Tax Credit? We’ve got you covered.

  • How does the government calculate the EV Tax Credit?

  • What are some of the financial benefits of purchasing an EV?

  • What are the environmental benefits of buying an EV?

  • How does the federal EV tax credit for used EVs compare to the tax credit for new EVs?

  • Is the used EV tax credit the same for used vehicles purchased in 2023 vs. 2024?

  • How can I benefit from the federal used EV tax credit?

  • Will I need to file a specific tax form to claim the 2024 EV tax credit?

  • What does the $25,000 vehicle price limit include?

  • Is there a limit on the number of vehicles I can claim an EV tax credit for?

  • What if I have other questions about the used EV tax credit?

We hope you found this page helpful! This content is not meant to provide legal or tax advice. We do our best to provide accurate information, but please conduct your own research before transacting and consider talking to a qualified professional about your unique circumstances. All third-party websites referenced/linked on this page are the property of their respective owners and do not constitute or imply endorsement, sponsorship, or recommendation of Carvana.