The state of EV incentives in Canada, August 2026

Shopping for an EV in Canada means dealing with a patchwork of federal and provincial rules that keep shifting. Here is where things stand this week, with a source for every number.

Federal purchase rebate

The Electric Vehicle Affordability Program (EVAP) replaced the closed iZEV rebate. It runs from February 16, 2026 to March 31, 2031, or until the money runs out, and pays $5,000 toward a new battery-electric or fuel-cell vehicle, or $2,500 toward a plug-in hybrid, subject to a $50,000 transaction cap (waived for Canadian-built EVs). Of the $2.275-billion envelope, $2.05 billion remained unspent as of August 1, 2026.

Importing an EV built in China

The 100% surtax on Chinese-built EVs was repealed outright, not reduced. What remains is the ordinary 6.1% MFN tariff plus an import quota administered by permit — this affects supply from manufacturers importing those vehicles, not what an individual buyer pays at a dealership. The first quota period (March 1 – August 31, 2026) allowed 24,500 units; as of the government's own tracker, dated August 28, 2026, 15,603 had been used. A second period opens September 1, 2026.

Sales mandate under review

The federal EV Availability Standard, which set rising zero-emission sales targets for automakers, is not dead but is proposed for repeal in a Canada Gazette notice published August 15, 2026. The public comment period runs until October 29, 2026, so this is not final.

Provinces: rebates in three, extra costs in three

Only three provinces still pay a purchase rebate; three others now charge EV owners an annual or biennial fee. Most other provinces have closed their programs or never had one.

Ontario has had no purchase rebate since 2018.