The 2026 Hyundai IONIQ 5 EV SUV lineup is set to undergo a significant price reduction across all models, making it a potentially opportune time for prospective buyers. Starting this month, the all-electric sport utility vehicle will feature a new base price of $36,600. This strategic adjustment aims to align the IONIQ 5's pricing more closely with internal combustion engine-powered SUVs in the midsize segment, a move prompted by the discontinuation of Federal EV tax credits rather than advancements in battery technology.

Hyundai's response to the cessation of federal tax credits is evident in the substantial price cuts. The average price reduction for the 2026 IONIQ 5 lineup is approximately $9,155. The smallest decrease is $7,600 for the 2026 IONIQ 5 SE RWD with the Standard Range pack, positioning it at $36,600. The largest price drop, an impressive $9,800, applies to the SEL trims, bringing the RWD version to $41,400 and the AWD version to $44,900.

For those interested in the more rugged XRT AWD variant, it will now start at $47,875, representing a $9,225 decrease from the 2025 model year. Adding a tow hitch to the XRT AWD will cost an additional $500, making the total $48,325. The top-tier 2026 IONIQ 5 Limited AWD also sees a $9,225 reduction, starting at $50,575.

Interestingly, almost every price reduction surpasses the potential $7,500 federal tax credit that some buyers might have previously utilized. This shift suggests that purchase decisions in the IONIQ 5's segment will now be primarily driven by powertrain preference rather than price, with reduced reliance on government incentives. While not yet confirmed for other models, it is speculated that Hyundai may extend similar price adjustments across its wider IONIQ electric vehicle lineup.

A detailed breakdown of the 2026 Hyundai IONIQ 5 pricing and decreases from 2025 models is as follows:

IONIQ 5 SE RWD Standard Range: $36,600 (Decrease: -$7,600)

IONIQ 5 SE RWD: $39,100 (Decrease: -$9,150)

IONIQ 5 SEL RWD: $41,400 (Decrease: -$9,800)

IONIQ 5 Limited RWD: $46,675 (Decrease: -$9,225)

IONIQ 5 SE AWD: $42,600 (Decrease: -$9,150)

IONIQ 5 SEL AWD: $44,900 (Decrease: -$9,800)

IONIQ 5 XRT AWD: $47,875 (Decrease: -$9,225)

IONIQ 5 XRT AWD with Tow Hitch: $48,325 (Decrease: -$9,225)

IONIQ 5 Limited AWD: $50,575 (Decrease: -$9,225)