EV vs. Gas: What It Actually Costs to Own

Updated September 29, 2026 with AAA's newest national data

What the newest national data says

In September 2026, AAA published its annual Your Driving Costs analysis: 34 popular models across seven categories, assuming five years and 75,000 miles. The headline number is $12,863 per year — $1,071.92 a month — to own and operate a new vehicle. Depreciation alone averages $4,422 a year, roughly a third of the total. AAA's 2026 release has the full breakdown.

This year's study folded EVs and hybrids directly into the same categories as gas models for the first time, and the results surprised a lot of people. EV charging costs up to 70% less than gasoline, yet EVs cost more than $3,000 extra per year to own than comparable gas models — because they depreciate faster. Fuel savings could not overcome the value they lose.

The real winners were hybrids: meaningful fuel savings with smaller tradeoffs, costing less per year than gas-only models among medium sedans, compact SUVs, medium SUVs and pickup trucks. If your goal is the lowest total cost rather than a powertrain statement, a hybrid deserves a hard look.

One more input worth knowing: at the time of the study, regular gasoline averaged $4.15 per gallon (up nearly 32% from 2025) while home electricity averaged 18 cents per kWh (up under 8%). Energy prices move — rerun your numbers with today's local prices, not last year's article.

Start beyond the sticker price

Many electric vehicles carry a higher purchase price than a broadly similar gas vehicle, although that gap varies widely by size, brand and incentives. The EV may recover some of the difference through lower energy and maintenance costs. Whether it catches up during your ownership depends on how much you drive, where you charge and what each vehicle is worth when you sell it.

Do not compare only the monthly payments. Include the down payment, interest, taxes and any home-charging equipment. Then subtract only an incentive you are confident you qualify for. A credit that arrives later does not reduce the amount financed unless the seller can legally apply it at the point of sale.

Home charging changes the calculation

Charging at home is usually the least expensive and most convenient pattern. Estimate energy use by dividing annual miles by the vehicle's miles per kilowatt-hour, then multiply by your utility's price per kilowatt-hour. Check whether your rate changes by time of day. Installation of a 240-volt outlet or charging unit can add an upfront cost, especially if the electrical panel needs work.

Public fast charging often costs more than home electricity. It can still be useful on road trips, but a driver who relies on it every week may give up much of the EV's fuel savings. Use your real mix: for example, 80% home charging and 20% public charging rather than assuming every mile receives the cheapest rate.

Maintenance is simpler, not zero

EVs do not need oil changes and have fewer moving powertrain parts. Regenerative braking may also reduce brake wear. They still need tires, cabin filters, alignments, suspension work and cooling-system service. Their weight and quick acceleration can wear tires faster for some drivers, so include a realistic tire allowance.

Battery degradation is normally gradual rather than a sudden failure. Range may decline over time, with heat, charging habits and mileage affecting the pace. Full battery replacement is expensive, but it is not a routine ownership expense for most newer EVs during the typical factory battery-warranty period. Check the exact warranty, its capacity threshold and whether it transfers to a second owner—especially on a used EV.

Insurance and tax credits need current quotes

Some EVs cost more to insure because repair procedures, parts prices and replacement values can be higher. Others are competitive with gas models. The driver's record, location and trim can matter more than the power source, so compare matching quotes with the same limits and deductibles.

The former federal New Clean Vehicle Credit is not available for vehicles acquired after September 30, 2025 — do not subtract it from a 2026 purchase. State, local and utility incentives may still exist, and eligibility can depend on the vehicle, battery sourcing, purchase price, income, location or whether the car is new or used. Check current official rules before buying, and never count a credit based on an old article or an advertisement that says only “up to.”

A five-year example

Consider a $40,000 EV and a $34,000 gas car, each driven 12,000 miles a year. These are sample assumptions, not forecasts. Suppose the EV averages 3.3 miles per kilowatt-hour and home electricity costs 18 cents per kilowatt-hour. Its five-year charging cost is roughly $3,270. A gas car averaging 30 mpg at $4.15 per gallon uses about $8,300 of fuel over the same 60,000 miles.

• EV: $21,000 depreciation based on a $19,000 resale value, about $3,270 for home charging, $3,250 for maintenance and $12,000 for insurance totals roughly $39,520.
• Gas car: $17,000 depreciation based on a $17,000 resale value, $8,300 for fuel, $5,500 for maintenance and $10,500 for insurance totals roughly $41,300.

The EV comes out about $1,780 lower in this narrow example before taxes, financing or a charger — and note the EV's $4,000 depreciation handicap mirrors what AAA found nationally. If public charging raises energy cost, the gas car may lead. Resale value is especially important: a few thousand dollars of difference there can outweigh years of fuel savings. And remember the hybrid middle ground: in AAA's data, hybrids beat gas-only models on annual cost in four of seven categories.