Hyundai has reduced prices across the 2026 IONIQ 5 lineup by as much as $9,800, effectively offsetting the loss of the U.S. federal EV tax credit that expired this week.
What we know: The announced reductions range from $7,600 to $9,800, with the average cut across the lineup coming in at $9,155.
This is one of the first public shifts we’ve seen since the federal credit disappeared.
And while every trim is cheaper, the drop isn’t uniform.
For the RWD models: Hyundai’s most affordable IONIQ 5, the SE Standard Range, now starts at $35,000 MSRP before freight (down from $42,600). With the $1,600 destination charge, that puts the effective starting price at $36,600.
After that, the SE RWD (225-hp version) comes in at $37,500, which is $9,150 less than before, excluding the destination charge.
The SEL RWD, meanwhile, now sits at $39,800, representing the deepest cut of all trims at $9,800 off.
All while the Limited RWD dropped to $45,075, down $9,225 from $54,300.
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For the AWD models: The SE AWD is now priced at $41,000, a reduction of $9,150. Again, that’s before destination fees.
On the other hand, the SEL AWD comes in at $43,300, down $9,800, matching the SEL RWD for the largest cuts in the lineup.
And the Limited AWD lands at $48,975, which is $9,225 less than before.
Why it matters: Hyundai is effectively replacing the lost $7,500 federal tax credit with direct price cuts, likely in an effort to keep the IONIQ 5 competitive with that $35,000-ish price point for the entry model and the just-under $50K price tag for the fully-loaded Limited AWD.
Bottom line: While other OEMs will almost certainly follow suit in their own ways, the reality is, cuts like these aren’t usually a long-term solution.
Automakers are under steady pressure to move EVs without federal support, and pricing strategies are now being changed quarter by quarter.
In other words, these cuts may (and probably will) shift again before year-end.
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