Washington 2024 EV Tax Credits Guide [+ Calculate Your Savings]

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There’s no denying that electric vehicles (EVs) are still expensive, at least in terms of sticker price. Thankfully, there are federal and state incentives like rebates and tax credits to make EVs more financially appealing.

But what state EV incentive programs are in place in Washington?

Let’s see what current incentives are available in your area and whether or not you qualify for them.

Last Updated: January 2024

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What EV Incentives Are Available in Washington?

Washington offers tax exemptions for alternative fuel vehicles (AFV), which includes electric vehicles and providers buyers more immediate savings than tax credits.

The Evergreen State also has various post-purchase incentives available to lower running costs, such as EV charging.

Incentives for Purchasing an EV in Washington

Washington state's incentives for buying an EV are handled slightly differently than many other states. Rather than purchase rebates or subsequent tax credits, Washington exempts a portion of the sales price of electric vehicles from state sales tax. Some plug-in hybrid models also qualify.

So how much can you save on Washington state taxes by buying an EV? The amount varies depending on the timing and sales arrangement.

Through July 31st, 2023, up to $20,000 of a new EV's purchase price is exempt from WA sales tax. From August 1st, 2023, that amount drops to $15,000 eligible for exemption on newly purchased all-electric models. This applies to EV models priced below $45,000.

For leased models, the timing makes no difference as the amount is a flat $16,000 eligible to be tax-exempt. The same amount is available for exemption on used EV purchases, as long as the sales price is below $30,000.

These state tax exemptions can be combined with federal incentives to save even more on qualified models.

Other EV Incentives Offered in Washington

Washington offers the following incentives for electric vehicle charging, maintenance, or related benefits:

  • Washington State EV Infrastructure Tax Exemption- Washington sales and use taxes do not apply to the labor and services for purchasing and installing EV infrastructure, including home charging stations.
  • Clark Public Utilities (CPU) offers rebates of up to $400 to residential customers for the installation of a connected home charging station. CPU also has a program to assist low-income buyers purchase a used EV, priced below $20,000. Learn more here.
  • Tacoma Public Utility (TPU) also gives residential customers up to $400, this time as bill credits, for home charging hardware. The utility also offers time-of-use (TOU) rates to bring down the cost of charging an electric vehicle during off-peak hours.
  • Snohomish PUD offers residential customers $200 in bill credits for the purchase or lease of a new or used EV. Up to $350 in rebates is also available for home charging installations. View the utility's website for more details.

Now that you know what electric vehicle incentives are available in Washington, what else do you need to know about making the switch to all-electric transportation?

Read our guidance on how to prepare for an EV to make sure the models you’re considering will meet your real-world driving needs!

Frequently Asked Questions

Are there incentives for purchasing an electric vehicle in Washington?

Yes, Washington offers a tax exemption on the purchase of electric vehicles and EV charging stations. Also, check out our picks for the best deals on EVs.

Are there additional fees for purchasing an electric vehicle in Washington?

Yes, there are additional fees to pay when you purchase an EV in the state of Washington. For plug-in vehicles with an EPA range of 30 miles or more, a $150 registration fee is charged to make up for the tax revenue lost now that you will no longer buy gasoline or diesel. A further fee of $75 above standard vehicle fees is also levied to aid the state's transportation electrification efforts.

Does sales tax apply when I buy an EV in Washington?

No, sales tax is not applied to a portion of electric vehicle purchases in Washington. See the EV purchase incentives section above for how this is calculated and visit our resource page to find the vehicle sales tax in Washington.