Although EV prices have generally dropped over the past decade due to an improving charging infrastructure and a more competitive market, the $7,500 federal ‘new EV credit’ and $4,000 ‘used EV credit’ were removed from September 30, 2025. For a financed buyer, a lost credit can represent the difference between affordability and moving on to cheaper options.
This campaign examines whether electric vehicles still deliver cost efficiency compared to gas‑powered cars. It explores the full ownership equation, from repair and maintenance expenses to charging time, electricity, and registration costs, while factoring in state differentials. The study identifies where EVs provide the greatest financial and practical benefits and asks the question: ‘EVs, are they worth it?’
Let’s start by looking at the depreciation and maintenance factor of EVs compared to gas-powered alternatives.
The Real Cost of EV Ownership: Maintenance, Repairs, and Depreciation
In the U.S., new vehicle depreciation remains the largest ownership cost over the first five years, exceeding fuel, insurance, and maintenance combined. According to the AAA, that’s true for all types of vehicles.
The average 5-year depreciation cost across all vehicle types is around 46%. Yet recent studies show EVs losing much more: around 60% of their value over five years. To compare, conventional gas vehicles typically lose between 40-50% over the same period.
This differential is countered by recent 2025 analyses that show EVs typically cost 35%-50% less in routine maintenance. That’s because there’s no need for oil changes, exhaust repairs, or various engine-related fixes. EV owners spend around $150-$300 a year on basic service, compared to the $900-$1,800 services cost for many gas-powered vehicles.
Despite lower maintenance costs, EV collision repairs are increasingly expensive. Claims data show EV crash repairs can cost 20% more than comparable gasoline vehicle repairs, and Gartner projects repair costs may rise up to 30% higher than gas vehicles by 2027 due to expensive batteries and large structural castings.
That said, EV battery warranties generally cover up to 10 years (or around 100,000 miles), which reduces the need to worry about major battery replacement costs during early ownership.
And while early EVs suffered from short range and limited charging options, newer long-range EVs, beneficiaries of more widespread charging networks and longer warranties, are already depreciating much more slowly, especially used EVs.
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Some Key Depreciation Drivers: EV vs. Gas Vehicles
Rapid tech turnover
When it comes to EVs, battery range, charging speeds, and driver-assist technology all rapidly improve, meaning older EVs become outdated faster than comparable gas vehicles.
Fuel price swings
Gas prices strongly influence truck and SUV resale values: higher fuel costs often weaken demand, while lower gas costs have the opposite effect.
Maintenance expectations
Gas vehicles require rising repair costs as they age; EVs generally avoid such problems, although that advantage is only just beginning to manifest in used prices.
Brand trust and networks
Strong charging infrastructure and proven reliability from leading brands support resale values. For first-generation EVs from less-established carmakers, resale is much trickier.
For EV owners, cost parameters can vary for all kinds of reasons. And for owners of gasoline-run vehicles, consistently high gas prices are a real negative. How one may be perceived to offset the other can be the difference between purchasing an EV or a gasoline vehicle.
Comparing U.S. Electricity and Gasoline Costs
2026 AAA research discovered that EV operating costs vary significantly depending on where and how drivers charge. In cold weather, charging an EV at home ($32.11 per 1,000 miles) was found to be cheaper than a hybrid, whereas EV drivers reliant on public fast chargers paid significantly more ($76.93 per 1,000 miles).
A 2025 accessibility study of nearly 6 million San Francisco Bay Area residents found that drivers had only 5.2 hours of feasible daily access to fast chargers, highlighting ongoing infrastructure limitations. Researchers also found workplace charging is becoming increasingly important, with many drivers having better access to chargers near where they work than as opposed to options near residential areas.
Consumer surveys and online discussions also suggest that most prospective EV owners (79%) primarily expect to charge their vehicle at home.
Stratospheric Gas Prices May Make EVs More Desirable
On May 12, 2026, the national average gas price reached $4.50 per gallon, a 43.6% increase from $3.14 12 months earlier. After successively significant increases over recent months (from $2.91 per gallon in February 2026 to $3.64 in March and $4.10 in April), drivers are suffering some of the highest gas prices in years, with costs exceeding $6 per gallon in California and rising by more than 50% in 12 states.
The last time monthly gas prices were higher was in July 2022, when they averaged $4.56 per gallon.
Beyond California’s highest average gas price ($6.15 per gallon), Washington ($5.77) and Hawaii ($5.64) also recorded particularly high rates. Oklahoma had the lowest average ($3.94 per gallon), ahead of Mississippi ($3.98) and Louisiana ($4).
Although gas prices increased by double-digits in every state between May 12, 2025, and May 12, 2026, the largest increases occurred in Ohio (57.2%), New Hampshire (56%), and Michigan (53.8%). California and Hawaii (25.6%) and Nevada (32.9%) were subject to the smallest increases.
At the metro level, prices rose the most in Springfield, Ohio (71%), Dayton, Ohio (64.4%), and Covington, Kentucky (63.0%), while Lihue, Hawaii (16.4%), Santa Rosa, California (19.1%), and Salinas, California (19.3%) recorded the smallest increases.
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After Tax Incentive Cuts, In Which States Are EVs Cheapest?
In 2025, some federal EV incentives ended, including the scheduled phaseout of the $7,500 new EV tax credit and the $4,000 used EV credit. Industry reporting confirmed that EV purchases spiked before the incentives expired.
J.D. Power data from 2025 showed U.S. EV transaction prices briefly fell below gasoline vehicle prices for the first time, effectively closing a price gap that had exceeded $16,000 per vehicle as recently as early 2023.
At the same time, academic research found millions of low-income households couldn’t benefit from EV incentives because many used EV purchases carried out through private-party sales didn’t qualify for federal credits.
Analysts warn that the elimination of tax credits could disproportionately affect first-time EV adoption, particularly in states where local rebates and charging incentives have also been affected or stopped.
For several years, all U.S. residents were eligible for a federal tax credit of up to $7,500 on qualified EV purchases. While that incentive has now ended, 17 states continue to offer other incentives, ranging from $1,500 in Rhode Island to $7,500 in Oregon and Maine.
However, 40 states impose higher annual registration fees on EVs and some hybrids to offset lost gas tax revenue. These fees range from $50 in Hawaii and South Dakota to $260 in New Jersey. While often justified as a way to subsidise road maintenance, such charges may deter many buyers from becoming EV owners.
States Subject to the Biggest EV Changes Since 2023
- California and Alaska ended their EV tax credit programs.
- New Mexico introduced a new EV tax credit.
- Maryland, Montana, New Hampshire, New Jersey, Pennsylvania, Rhode Island, Texas, and Vermont introduced new EV registration fees.
- Tennessee increased its EV registration fee from $100 to $200.
- Kansas increased its fee from $70 to $165.
- Indiana increased its fee from $150 to $230.
- Nebraska increased its fee from $75 to $150.
- Wisconsin increased its fee from $100 to $175.
- North Carolina increased its fee from $140.25 to $214.50.
Eleven states offer EV purchase incentives and impose higher registration fees than those applied to gas vehicles.
One measure taken in some states to offset declining gas tax revenue has been to tax EV charging. States such as Georgia, Iowa, Kentucky, and Oklahoma now tax charging station electricity. While these fees are an attempt to balance the public use of gas and electricity, they don’t fully account for home charging, which many EV owners use as their main means of energy.
Other attempts have been introduced to connect road funding more directly to vehicle use.
Vehicle Miles Traveled (VMT) Programs
Several states have adopted mileage-based programs. Here are some examples.
- Oregon allows qualifying drivers to pay $0.02 per mile instead of paying its $115 EV registration fee.
- Utah allows EV drivers to pay $0.0111 per mile up to the value of the registration fee.
- Virginia allows EV drivers to pay $0.0114 per mile through a mileage-tracking program.
- Hawaii launched the HiRUC program in 2025, which allows EV drivers to pay either $0.008 per mile or a flat $50 fee.
It was anticipated that Vermont would launch a similar VMT program in 2025, but the state postponed it until 2027. California and Washington have also carried out major VMT pilot programs as states continue exploring alternatives to traditional fuel-tax funding.
Time Is Money: EV Inconvenience Factors
Temperature has a measurable impact on EV and hybrid efficiency, travel distance, and driving costs. Cold weather remains the biggest challenge (particularly for EVs), while extreme heat introduces smaller yet still meaningful efficiency losses.
2025 consumer EV surveys found that fast-charging speed was the key factor when it came to owner satisfaction. Most drivers suggested they were willing to wait 21-40 minutes for a fast charge, much longer than the average gas fill-up period.
2026 AAA testing found that cold weather reduced EV driving range by up to 39% at 20°F, increasing the need for additional charging stops during the winter. Academic research published in 2025 also found that extreme cold can significantly extend charging times as batteries accommodate power more slowly.
Additionally, researchers studying charging accessibility identified major geographic disparities in charger availability, meaning drivers in some regions must necessarily spend more time planning routes so they feature charging stops.
Here’s a breakdown of how both hot and cold temperatures can affect performance.
EV/Hybrid Hot Temperature Issues (95°F)
- Hybrids lose 12% fuel efficiency.
- EVs lose 10.4% efficiency and 8.5% driving range.
- Hybrid operating costs rise by $13.02 per 1,000 miles.
- EV operating costs increase by $6.78 per 1,000 miles (home charging) and $16.25 (public charging).
EV/Hybrid Cold Temperature Issues (20°F)
- Hybrids lose 22.8% fuel economy.
- EVs lose 35.6% efficiency and 39% driving range.
- Hybrid fuel costs increase by $28.44 per 1,000 miles.
- EV costs rise by $32.11 per 1,000 miles (home charging) and $76.93 (public charging).
The largest cost differentials concern cold weather. At 20°F, EVs cost $36.19 less per 1,000 miles than hybrids when charged at home, but $86.26 more when reliant on public chargers. At 95°F, EVs remain $46.11 cheaper with home charging but $41.00 more expensive when using public charging.
As of May 28, 2026, the national average gasoline price was $4.43 per gallon, while the average public EV charging cost $0.42 per kWh.
The states featuring the most EV chargers were California (28,393), New York (21,380), Florida (8,231), Massachusetts (6,492), and Texas (6,173); the states featuring the fewest EV chargers were Wyoming (43), Alaska (65), North Dakota (85), South Dakota (85), and Montana (105).
The most expensive EV charging states were West Virginia ($0.529/kWh), Hawaii ($0.512), Alaska ($0.472), Louisiana ($0.467), and New Hampshire ($0.464). EV charging was cheapest in Kansas ($0.291/kWh), Missouri ($0.320), Maryland ($0.336), Utah ($0.337), and Iowa ($0.340).
EV Workplace Benefits
Workplace support is one of the main drivers of EV adoption. A recent survey found that while most employees are aware of zero-emission transportation incentives, only 15% currently benefit from them through their employer.
Demand for additional support is significant. Among employees without workplace charging options, 98% said they would be interested in its availability, while 91% expressed interest in employer subsidies for buying or leasing an EV. Employees also showed strong interest in home-charging discounts, public charging memberships, EV rental options, and public transit incentives.
Overall, the findings suggest that workplace charging is a potentially key way to overcome a major barrier to EV ownership: access to reliable chargers for long-distance commuters. The U.S. Department of Energy suggests that workplace charging is a key solution to broader EV adoption, with federal agencies currently developing charging programs and employee-use policies.
ChargePoint reports that EV charging is increasingly being treated as a workplace benefit equivalent to free parking or commuter subsidies. Employers in competitive labor markets increasingly report that job candidates ask about EV charging during their interview. In some regions (particularly the Bay Area), workplace charging has become a valuable recruiting tool.
Research from The Futurum Group’s 2025 Fleet Electrification Index found that 61% of large enterprises currently without EV fleets are preparing to introduce them (including workplace charging and home-charging costs help).
Automakers are also helping to reduce ownership costs. Ford’s 2025-2026 ‘Ford Power Promise’ program offers qualifying EV buyers a free home charger plus standard installation, addressing one of the largest upfront expenses.
Among EV owners, free workplace charging is clearly a coveted benefit, and is frequently cited as a key reason for considering or buying an EV, with some drivers reporting that it effectively nullifies commuting costs.
However, as EV adoption grows, charging availability will continue to represent an operational challenge, with some employers inevitably introducing reservation and queue management systems as well as time limits.
The following companies are notable for offering workplace EV charging.
- The Alliance Center
- Kohler
- Sierra Wireless
- United Airlines
- University of California
- Werner Electric
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The EV Ownership Equation
In the U.S., depreciating vehicle value represents the highest cost of vehicle ownership: it often exceeds the combined costs of fuel, insurance, and maintenance. Across all vehicles, the average five-year depreciation is 45-46%, but EVs typically lose 58-60% of their value compared to mid-40% levels for gas vehicles.
EVs do, however, offer lower maintenance costs: analysis shows that EV maintenance is up to 50% cheaper due to fewer moving parts and repairs. EV owners spend roughly $150-$300 a year compared to $900-$1,800 for many gas vehicles.
Analysts warn that the elimination of tax credits could disproportionately affect first–time EV adoption, particularly in states where local rebates and charging incentives have also been affected or stopped
However, EV repair costs are rising. Crash repairs average 20% higher than comparable gas vehicles, and Gartner projects EV repair costs could be 30% higher by 2027 due to battery and structural costs. Most EVs now include 8-10 year or 100,000-mile battery warranties, reducing early-life replacement risk.
Early EVs faced steep depreciation due to limited range and charging access, but newer long-range models with better infrastructure and warranties show slower value loss. Depreciation is shaped by rapid tech turnover, battery anxiety, incentives, fuel price volatility, maintenance expectations, and brand trust.
EV costs also vary heavily depending on location and charging method, with cold-weather EVs cheaper when home charging but more expensive when using public fast chargers, adding $32.11 per 1,000 miles (home) vs $76.93 (public). Access remains uneven, with some drivers averaging only 5.2 hours daily access to fast chargers. (Consumer surveys show 79% of prospective EV buyers still prefer home charging.)
Gas prices reached $4.50 per gallon in May 2026, up 43.6% year-over-year, with California exceeding $6. Prices rose in every state, with increases up to 57% in Ohio and over 70% in some metros.
The end of federal EV credits (up to $7,500) prompted purchase surges and narrowed price gaps between EVs and gas cars. However, many low-income buyers still cannot access incentives. And state EV positions sharply differ: 17 offer EV incentives, while 40 impose high EV registration fees. Some states also tax EV charging, while others experiment with VMT mileage-based systems (Oregon, Utah, Virginia, and Hawaii).
Additionally, temperature significantly affects EV performance. At 20°F, EV range drops 39% and charging slows; at 95°F, efficiency losses are smaller but significant. EVs cost less than hybrids when home-charged, but more when relying on public chargers.
As of 2026, the U.S. has stark infrastructure inequality: California has 28,393 chargers, while Wyoming has just 43. Electricity pricing also varies widely, from $0.291/kWh in Kansas to $0.529/kWh in West Virginia.
Workplace charging is emerging as a major EV adoption driver. Only 15% of employees currently have access, yet 98% currently without it want it, with 91% keen on EV purchase subsidies. Companies increasingly use charging as a hiring and retention tool, with major employers and universities adopting programs, and automakers like Ford offering free home charger installation to reduce upfront costs.
Ultimately, gas prices and carmaker support for both EVs and combustion engine vehicles will significantly determine the complexion of future American roads. But state incentives may well also prove to be crucial factors, with depreciation and maintenance factors also vital.
For the first-time buyer, it’s a difficult conundrum to navigate, with compelling pluses and negatives on both sides. The next few years may clarify the issue, particularly if EV incentives return.
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