Gas vs EV vs Hybrid: Which Costs Less Over Time

As of August 2026 the U.S. average regular gas price is $4.06/gal (AAA national average, retrieved 2026-08-06) and the federal EV tax credit is gone: the new-car credit (up to $7,500) and used-car credit (up to $4,000) both expired September 30, 2025 under the One Big Beautiful Bill Act (OBBBA, Public Law 119-21). For 2026 purchases there is no federal credit—only state or utility rebates, which vary by location. At $4.06/gal and about $0.16/kWh home electricity, a gas car burns roughly $1,740/year in fuel at 12,000 miles (28 MPG), while an EV costs about $615/year to charge at home (0.32 kWh/mi); public DC fast charging runs far higher, about 42¢/kWh (AAA, Aug 2026). Without a federal credit the EV’s higher purchase price takes longer to recover, so the crossover year shifts later. Adjust the inputs for your state, mileage and electricity rate.