If you’re planning to go electric in 2025, now is the perfect time. The $5,000 EV rebate is officially back in Canada for 2025, offering an excellent opportunity to reduce the cost of purchasing or leasing a zero-emission vehicle (ZEV).
Whether you’re looking to switch for environmental reasons or to save on fuel costs, this federal incentive can significantly lower your upfront expense.
What Is the $5,000 EV Rebate?
The Canadian government continues to encourage the adoption of eco-friendly transportation with its Incentives for Zero-Emission Vehicles (iZEV) Program.
Under this initiative, Canadians can receive up to $5,000 off the purchase or lease of eligible EVs, including battery electric vehicles (BEVs), plug-in hybrids (PHEVs), and hydrogen fuel cell vehicles.
This rebate is applied directly at the dealership—no need to wait for a government cheque or file for reimbursement.
Who’s Eligible for the EV Rebate?
To qualify for the $5,000 EV rebate, both the buyer and the vehicle must meet specific criteria:
Buyer Requirements:
- Must be a Canadian resident
- Must purchase or lease the vehicle new (not used)
- Vehicle must be used primarily for personal or commercial use in Canada
Vehicle Requirements:
- Must be on the official list of eligible zero-emission vehicles
- Must have a base model Manufacturer’s Suggested Retail Price (MSRP) of:
- $55,000 or less for passenger cars
- $60,000 or less for SUVs, vans, and pickups
- Higher trim versions (up to $70,000) may also qualify if the base model is within the price cap
Lease Terms and Corresponding Rebate Amount
The rebate is also available for leases, but the amount depends on the length of the lease term:
| Lease Duration | Rebate Amount |
|---|---|
| 48 months | $5,000 |
| 36 months | $3,750 |
| 24 months | $2,500 |
| 12 months | $1,250 |
Leases shorter than 12 months do not qualify.
Provincial and Territorial Top-Up Incentives
Several provinces and territories also offer their own stackable EV rebates, which can be combined with the federal program:
| Province/Territory | Maximum Additional Incentive |
|---|---|
| Quebec | $7,000 |
| British Columbia | $4,000 |
| Prince Edward Island | $5,750 |
| Nova Scotia | $3,000 |
| New Brunswick | $5,000 |
| Newfoundland & Labrador | $2,500 |
| Yukon | $5,000 |
This means a resident in Quebec could receive up to $12,000 in total rebates when combining federal and provincial offers.
How to Claim the $5,000 Rebate
The rebate process is simple and is handled at the point of sale:
- Choose an eligible EV from the government’s approved list.
- Visit a participating dealership enrolled in the program.
- The dealer applies the rebate directly to the purchase or lease agreement.
- Sign a consent form to confirm you’re receiving the rebate and agree to its terms.
You cannot apply for this rebate on your own after the transaction—it must be processed through the dealership at the time of purchase or lease.
The $5,000 EV rebate in Canada for 2025 makes switching to a cleaner, more sustainable vehicle not only environmentally responsible but also financially smart. Whether you’re buying or leasing, this federal incentive—combined with provincial rebates—can save you thousands of dollars.
Be sure to review the eligibility requirements and consult your local dealership to ensure your vehicle qualifies. If you’re considering going electric, now is the time to make your move.
FAQs
Can I claim the rebate if I buy a used EV?
No, the federal rebate only applies to new vehicles. However, some provinces may offer used EV incentives separately.
Is the rebate applied before or after taxes?
The rebate is applied after taxes and fees have been calculated, directly reducing the final amount due at signing.
Can businesses also apply for the rebate?
Yes. Businesses, organizations, and municipal fleets can receive up to 10 rebates per year for eligible vehicles.