Canada's federal EV rebate drops on January 1, 2027. Here's what changes and what doesn't

How much is the EV rebate in 2027?

Transport Canada's EVAP overview lists the incentive by calendar year:

Source: Transport Canada, EVAP overview, checked October 28, 2026. Amounts are maximums for a purchase or a lease of 48 months or more.

Transport Canada: "The eligibility assessment submission date determines the applicable incentive level, not the vehicle delivery date."

Does my delivery date decide the amount?

No. Transport Canada says the amount is based on the year the dealership submits the eligibility assessment through the EVAP portal, also called the pre-approval. It isn't based on when the vehicle is bought, leased or delivered (Q&A, question 13).

Transport Canada gives two examples. If the dealer submits the pre-approval on December 2, 2026 and the car is delivered on February 21, 2027, the 2026 amount applies, because the pre-approval was submitted in 2026 and the car was delivered within 90 days. If the car is delivered on November 26, 2026 but the pre-approval is submitted on January 7, 2027, the lower 2027 amount applies (same source). An eligibility validation is valid for 90 days (question 12).

How does the $50,000 cap work?

EVAP doesn't use an MSRP cap. What counts is the final transaction value, which must be $50,000 or less unless the vehicle is made in Canada (Q&A, questions 10 and 11). Options, packages, accessories such as floor mats or a dash camera, and dealership, documentation and market adjustment fees all count. Manufacturer and dealer discounts are deducted, whether they're applied before or after tax (questions 8 and 9).

Some items don't count towards the cap: PDI and freight, extended warranties, one set of winter tires, a Level 2 charger and adapters, financing costs, trade-ins and deposits, and sales and luxury taxes (question 8). A car that isn't on the EVAP vehicle list can still qualify if its final transaction value is $50,000 or less (question 10).

What are the other rules?

• The vehicle must be bought or leased on or after February 16, 2026, and be made in Canada or in a country with a free-trade agreement with Canada (EVAP overview).
• It must be new (registered for the first time), light-duty (under 8,500 pounds), highway-capable and have at least four wheels. Demonstrators under 10,000 km qualify (same source).
• Leases must be 12 months or longer. Leases of 48 months or more get the full amount; shorter leases are prorated (same source).
• Individuals can get one EVAP incentive over the program. You must be a Canadian resident, but not necessarily a citizen (overview; Q&A, question 14).
• Only enrolled dealerships and authorized sellers can apply. You sign a Consumer Consent Form and an Attestation Form, and the incentive is applied on the bill of sale after taxes and fees (overview).
• Dealers can't charge extra fees for vehicles bought under the program, and dealer participation is voluntary (Q&A, questions 5 and 25).
• EVAP is applied on top of any provincial or territorial incentive (question 17).

How long does the program run?

EVAP runs until March 31, 2031, or earlier if funding runs out, and money is given first come, first served (Q&A, question 1). As of October 1, 2026, $1.92B of the $2.275B budget was left (Transport Canada). For how many rebates dealers have filed so far, see Model Y is #2 in Canada's EV rebate claims. See our EV rebates guide and out-the-door price guide to check a specific build.