No Tax Credits, No Problem! Hyundai Massively Slashes Prices of 2026 Ioniq 5
The average reduction across trims is more than $9,000, with nearly a $10,000 drop on some models.
Justin BannerWriterMotorTrend StaffPhotographerManufacturerPhotographerOct 01, 2025
007 2025 Hyundai IONIQ 5
If you were waiting to get into a Hyundai Ioniq 5 EV SUV, now’s probably the time. Starting this month, the 2026 Ioniq 5 lineup will see a massive price drop across the board over the 2025 models, with a new base price of $36,600. This brings Hyundai’s all-electric sport utility vehicle in line with internal combustion powered SUVs in the same midsize segment. And all it took was the removal of Federal EV tax credits instead of futuristic battery technology to do it.
026 2025 Hyundai IONIQ 5
An obvious response by Hyundai to the end of the tax credit, the average reduction in price for the 2026 Ioniq 5 lineup is $9,155, with the lowest price haircut being the $7,600 off for the 2026 Ioniq 5 SE RWD with the Standard Range pack over last year’s model. The largest decrease of $9,800 goes to the SEL trims as the RWD is now $41,400 and the AWD version rings in at $44,900. For those looking for more off-road ability in your Ioniq 5, the XRT AWD will now start at $47,875—a $9,225 decrease over the 2025 model year—without the tow hitch (add just $500 if you need to haul with a trailer). If you want the top-of-the-line 2026 Ioniq 5 Limited AWD, it now starts at $50,575 thanks to its $9,225 decrease over the 2025 model year version.
Interestingly, every price drop is higher than the potential $7,500 tax credit some buyers would have been able to take advantage of in the past. Now, it’s really down to powertrain preference, not price, in the Ioniq 5’s segment, with no government intervention required.
Will Hyundai follow suit and reduce prices for its other Ioniq models as well? While that hasn’t been been confirmed yet, if they’re doing it with the 5, it stands to reason it will be doing the same with rest of its EV lineup. Below is a full chart with a more detailed breakdown of each model’s price decrease.
Justin Banner
Having experience in many forms of the automotive industry, Justin Banner has done more than just write about cars. For more than 15 years, he’s had experience working as an automotive service technician—including a stint as a Virginia State Inspector—service advisor, parts sales, and aftermarket parts technical advisor (a fancy way of saying he helped you on the phone when you had trouble fitting your brakes over your aftermarket wheels and the like). Prior to his tenure as a full-time editor, Justin worked as a freelance writer and photographer for various publications and as an automotive content creator on YouTube. He’s also covered multiple forms of motorsports ranging from Formula Drift, drag racing, and time attack, to NASCAR, short course off-roading, and open desert racing. He’s best known for breaking down complex technical concepts so a layperson can more easily understand why technologies, repairs, and parts should matter to them. At MotorTrend, Justin is part of the news team covering breaking news and topics while also working as a judge for MotorTrend Of the Year events and other major comparison tests.
