Owning an electric vehicle in California in 2026 looks different than it did a year ago. The federal tax credits of up to $7,500 for new EVs and $4,000 for used ones expired on September 30, 2025, and the Clean Air Vehicle decal that let solo EV drivers use carpool lanes ended the same day. What remains is a stack of state-level rules that still shape the economics of going electric: income-based purchase grants worth up to $12,000, an annual registration surcharge that rises each year, and some of the country’s strongest laws protecting your right to install a home charger as a renter or condo owner. Here is where electric vehicles in California stand now.
The Annual Fee Every EV Owner Pays
Zero-emission vehicles registered in California owe an annual road improvement fee on top of standard registration. The fee was set at $100 under Vehicle Code Section 9250.6 when it took effect in July 2020 for model year 2020 and newer ZEVs.1Alternative Fuels Data Center. Zero Emission Vehicle (ZEV) Fee The DMV adjusts the amount every January 1 by the increase in the California Consumer Price Index, so what you owe climbs a little each year. The reasoning: EV drivers don’t pay the gas tax that funds road maintenance, and the legislature wanted EVs to contribute to infrastructure costs. Your renewal notice will also show a separate $3 alternative fuel/technology fee.2California Department of Motor Vehicles. Registration Fees
State Purchase Assistance Programs
With the federal credits gone, state programs do the heavy lifting on affordability. California runs two main income-qualified incentives, and both cap eligibility at household income no higher than 300% of the federal poverty level. You can only use one of them in your lifetime.
Clean Cars 4 All
Clean Cars 4 All helps residents in high-pollution areas trade an older, high-polluting vehicle for something cleaner. You must retire a functional vehicle to qualify, and the specific age and condition requirements vary by local air district.3California Air Resources Board. Clean Cars 4 All Your replacement vehicle can be no more than eight model years old. Grant amounts depend on whether you live in a disadvantaged community:
- Zero-emission vehicle: up to $12,000 in a disadvantaged community, or up to $10,000 elsewhere, plus up to $2,000 for charging equipment.
- Plug-in hybrid: up to $11,500 in a disadvantaged community, or up to $9,500 elsewhere, plus up to $2,000 for charging equipment.
- Mobility option such as transit passes or car sharing: up to $6,500 in a disadvantaged community, or up to $4,500 elsewhere.
Applications go through your regional air district, and funding is limited.
Driving Clean Assistance Program
The Driving Clean Assistance Program runs statewide and does not require you to scrap an existing vehicle, though grants go further if you do. Eligible participants can receive a purchase grant of up to $12,000, plus a $2,000 charging incentive that can go toward a home charger installation or a prepaid card for public charging.4California Air Resources Board. Driving Clean Assistance Program The program also offers low-interest auto loans capped at 8% APR for participants who need financing. Apply before you buy. You cannot participate if you’ve already received a grant from Clean Cars 4 All, the now-closed Clean Vehicle Rebate Project, or certain other CARB vehicle incentive programs.
Benefits That Ended in 2025
Federal Tax Credits Are Gone
The federal Clean Vehicle Credit for new EVs and the Previously Owned Clean Vehicle Credit for used EVs both expired on September 30, 2025. Vehicles delivered after that date do not qualify for any federal EV tax credit.5Internal Revenue Service. Clean Vehicle Tax Credits If you took delivery before the deadline and transferred the credit to the dealer as a point-of-sale discount, you still need to prove eligibility on your 2025 federal tax return. If your income exceeded the limits or the vehicle didn’t meet the requirements, the IRS can claw the credit back.
Dealer advertising and salespeople have been slow to catch up. No dealer paperwork can bring back a credit Congress let expire. Price the car on its sticker, not on a credit that no longer exists.
The Carpool Lane Decal Program Ended
California’s Clean Air Vehicle decal program, which let solo EV drivers use HOV lanes, ended on September 30, 2025, when the federal regulation authorizing it expired. The DMV stopped accepting applications on August 29, 2025, and any decals already issued are no longer valid.6California Department of Motor Vehicles. Federal Government Ends Clean Air Vehicle (CAV) Decal Program
Starting October 1, 2025, every vehicle must meet posted occupancy rules to use an HOV lane or pay any required toll. There is no successor program, no grace period, and no EV exemption. Drive solo in a carpool lane and you risk a citation whatever you drive.7California Department of Motor Vehicles. Clean Air Vehicle Decals
Your Right to Install a Charger Where You Live
An EV is only practical if you can plug it in at home. California gives both renters and condo owners strong legal footing to install a charger over a landlord’s or HOA’s objections.
If You Rent
Under Civil Code Section 1947.6, a landlord must approve a tenant’s written request to install an EV charging station at a parking space allotted to that tenant.8California Legislative Information. California Civil Code Section 1947.6 You pay for everything: installation, maintenance, electricity, and eventual removal. Your request has to comply with local building codes and the landlord’s procedural requirements. Unless the charging station is certified by a nationally recognized testing laboratory and all electrical work is done by a licensed electrician, you also have to carry a personal liability insurance policy.
The right has limits. A landlord can decline if the property has fewer than five parking spaces, if parking isn’t included in your lease, or if charging stations already serve at least 10% of the designated spaces. If installing the charger effectively converts open parking into a reserved spot for you, the landlord can charge additional rent for that space.8California Legislative Information. California Civil Code Section 1947.6
If You Live in an HOA
Civil Code Section 4745 bars any homeowners association from unreasonably restricting an owner’s installation of an EV charging station in their unit or designated parking space. Any HOA rule that effectively bans chargers is void and unenforceable.9California Legislative Information. California Code CIV 4745 – Protected Uses The HOA can impose reasonable restrictions, but a restriction isn’t reasonable if it significantly increases the cost of the station or significantly cuts its performance.
Where architectural approval is required, the HOA has to process your application the same way it handles any other property modification and can’t deliberately drag its feet. An application the association doesn’t deny in writing within 60 days is automatically approved, unless the association made a reasonable request for additional information that explains the delay.9California Legislative Information. California Code CIV 4745 – Protected Uses If you’re installing in a common area rather than a space you own, expect to pay for electricity through a submeter and to meet additional requirements the association sets for shared-space work. You remain responsible for hiring a licensed contractor and meeting all building codes.
Parking at Charging Stations
Vehicle Code Section 22511.1 makes it illegal to park in a space designated for EV charging unless your vehicle is actually connected and charging.10California Legislative Information. California Vehicle Code Section 22511.1 The statute also prohibits blocking access to those spaces. It applies to everyone, including EV drivers who have finished charging but leave the car sitting in the stall. Violations are infractions, and the total with surcharges and assessments runs close to $490 under California’s uniform bail schedule. Enforcement varies by area and by whether the property owner or local parking authority actively reports violations.
The ZEV Sales Mandate and What It Means for You
You’ve probably heard that California is phasing out gas cars by 2035. The Advanced Clean Cars II regulation (13 CCR ยง 1962.4) requires automakers to sell increasing percentages of zero-emission vehicles each model year, starting at 35% for the 2026 model year, rising to 68% by 2030, and reaching 100% by 2035.11New York Codes, Rules and Regulations. 13 CCR 1962.4 – Zero-Emission Vehicle Requirements for 2026 and Subsequent Model Year Passenger Cars and Light-Duty Trucks These are sales quotas on manufacturers. They do not ban gasoline cars from the road, restrict used-car sales, or force any individual to buy an EV. If you already own a gas-powered vehicle, nothing here affects your ability to keep driving it, selling it, or buying another one used.
The rule’s future is also uncertain. California can only enforce vehicle emission standards stricter than the federal government’s with an EPA waiver under the Clean Air Act. EPA originally granted the Advanced Clean Cars II waiver covering model years 2026 through 2035,12U.S. Environmental Protection Agency. EPA Grants Waiver for Californias Advanced Clean Cars II Regulations but Congress passed a Congressional Review Act resolution in 2025 to nullify it. If the nullification holds up against legal challenges, California loses the authority to enforce the sales mandate, and so do the roughly 17 states that adopted California’s standards. The situation is unresolved.
Buying a New Car Out of State
Separate from the sales mandate, California has long refused to register new vehicles brought in from other states that don’t meet California’s emission certification. The DMV classifies these as “California Noncertified Vehicles” and will refuse registration if the odometer shows fewer than 7,500 miles, unless you qualify for a narrow exemption such as inheriting the vehicle or replacing a California-registered car that broke down while you were traveling.13California DMV. California Noncertified/Direct Import Vehicle Exemptions If registration is refused, the DMV puts a permanent stop on the vehicle record, and the car has to leave the state. This rule predates Advanced Clean Cars II and applies regardless of what happens with the federal waiver.