Buying an electric vehicle can dramatically reduce the amount spent on fuel, but the savings at the charging station do not tell the full story. Depreciation, insurance, financing, registration, maintenance, and tires can all change the economics of owning an EV, and the latest data from AAA shows just how large those differences can be.
AAA’s 2026 Your Driving Costs study provides one of the clearest current snapshots of what Americans can expect to spend on a new vehicle. The organization estimates that the average new vehicle costs $12,863 per year to own and operate when driven 15,000 miles annually.
But EV costs vary considerably depending on the vehicle category. In AAA’s EV comparison, annual costs range from $11,888 for a compact electric SUV to $17,414 for an electric pickup truck.
That makes it difficult to give one universal figure for “EV ownership.” A relatively affordable electric SUV can have a very different financial profile from a premium electric sedan or pickup.
The biggest surprise in the latest data is that electricity remains substantially cheaper than gasoline, but the savings can be overwhelmed by depreciation, insurance, and financing on some EVs.
The Annual Cost of an EV Goes Far Beyond Charging
AAA calculates vehicle ownership using several categories rather than simply looking at fuel. Its 2026 study includes depreciation, financing, insurance, license and registration taxes, fuel, and maintenance, repair, and tire expenses. The study assumes five years and 75,000 miles of ownership, or 15,000 miles per year.
For EVs, AAA’s latest comparison provides the following annual figures at 15,000 miles:
| Vehicle type | EV annual cost | Gas annual cost | Hybrid annual cost |
|---|---|---|---|
| Medium sedan | $13,662 | $10,582 | $10,204 |
| Compact SUV | $11,888 | $11,656 | $11,201 |
| Medium SUV | $14,332 | $14,431 | $13,698 |
| Pickup truck | $17,414 | $16,626 | $16,117 |
These are averages for selected top-selling 2026 models, not every EV on the market. AAA specifically warns that the EV and hybrid comparison covers only four categories and should not be compared directly with its $12,863 average for the entire new-vehicle market.
The figures show why the annual ownership bill can look very different from the cost of charging.
Take the medium-sedan category. AAA calculates $712.50 per year for electricity for the EV, compared with $2,215 in gasoline for the comparable gas-powered vehicles. That gives the electric model a fuel-cost advantage of more than $1,500 per year.
But depreciation tells a very different story. The EV’s average depreciation is $6,786 per year, compared with $3,330 for the gasoline model. The electric sedan also carries higher insurance, registration, and finance costs. As a result, AAA calculates the EV’s total annual ownership cost at $13,662, compared with $10,582 for the gas model.
The compact SUV category is much closer. AAA puts the electric model at $11,888 per year, compared with $11,656 for gasoline and $11,201 for the hybrid. Here, the EV’s $771 annual charging cost is considerably below the gas model’s $2,382 fuel bill, but higher depreciation and other ownership costs absorb most of that advantage.
Medium SUVs produce an even more interesting result. AAA estimates the electric version at $14,332 per year, while the gasoline model costs $14,431. The EV therefore has a slightly lower annual ownership cost in this particular comparison, despite its substantially higher depreciation.
The electric pickup shows the opposite situation. AAA estimates $1,222 per year in charging, compared with $3,598 in gasoline for the comparable gas-powered pickups. Yet depreciation, insurance, registration, and financing push the EV’s annual cost to $17,414, versus $16,626 for gasoline.
Why Electricity Is So Much Cheaper Than Gasoline
The fuel savings are real, and the latest AAA data provides a useful explanation. For its 2026 study, AAA used an average regular gasoline price of $4.152 per gallon and an electricity rate of 18 cents per kilowatt-hour.
AAA says gasoline prices during the 12 months used in the study were 31.8% higher than the previous year, while electricity prices increased 7.8%.
The U.S. Department of Energy’s eGallon concept provides another way to understand the difference. An eGallon represents the amount of electricity required to drive an EV the same distance that a comparable gasoline vehicle could travel on one gallon of gasoline.
DOE developed the measurement specifically because comparing dollars per kilowatt-hour with dollars per gallon is not intuitive for most drivers.
Current market data reinforces the large gap. Reuters reported on September 22 that the average U.S. cost of charging an EV was about $1.56 per gallon-equivalent, while gasoline averaged approximately $4.43 per gallon at the time.
Reuters noted that charging costs vary substantially by state because electricity prices depend on local utility markets, while gasoline prices are more strongly influenced by oil markets.
Home charging is particularly important to the ownership equation. AAA’s study uses residential electricity pricing, and an EV owner who regularly charges at home can avoid much of the higher pricing associated with public fast-charging networks.
AAA’s 2026 research also found that charging location can affect seasonal EV costs. Its research on temperature showed that EV operating costs can rise during extreme weather, with public charging potentially making those seasonal increases more significant.
The organization recommends considering electricity rates and charging access when calculating EV ownership expenses. This means two drivers with the same EV can have noticeably different annual charging bills.
A homeowner who charges primarily overnight at home may have a very different cost from a driver who relies heavily on public DC fast chargers. Driving distance also matters. Someone traveling 20,000 miles annually will naturally spend more on electricity than someone covering 10,000 miles.
Depreciation Can Erase Years of Fuel Savings
The most important lesson from AAA’s 2026 data is that an EV’s total ownership cost is not determined by energy prices alone.
Depreciation is the largest single cost in AAA’s general ownership calculation, averaging $4,422 per year across the vehicles in the full 2026 study. AAA calculates depreciation from the difference between the purchase price and estimated trade-in value after five years and 75,000 miles.
That becomes particularly important for EVs because used-EV values can vary significantly depending on new-car pricing, incentives, battery technology, model updates, and consumer demand.
The medium-sedan comparison illustrates the issue clearly. The EV saves roughly $1,500 annually on fuel compared with the gas vehicle, but its depreciation is more than $3,400 higher per year. That single difference more than wipes out the charging advantage.
Maintenance is a different story. AAA’s 2026 figures show EVs generally spending less on maintenance than comparable gasoline vehicles in several categories.
The medium electric sedan averages $1,602 in maintenance costs versus $1,827 for gasoline. The compact electric SUV is at $1,402 compared with $1,954 for gas, while the electric pickup is at $1,618 versus $1,788.
Electric vehicles generally have fewer conventional powertrain components requiring routine service because they do not use engine oil, spark plugs, or many of the other service items found in internal-combustion vehicles.
But insurance and financing can still be substantial. AAA’s figures show that EVs in its comparison often carry higher insurance and finance costs than their gasoline counterparts, partly reflecting vehicle prices and the cost structure of newer electric models.
So, how much does an EV cost to own for a year? Based on AAA’s 2026 selected-model analysis, a reasonable range is roughly $11,900 to $17,400 per year at 15,000 miles, depending heavily on vehicle type. That works out to approximately $32.57 to $47.71 per day.
The charging portion can be dramatically lower than gasoline fuel costs, but that does not guarantee a lower total ownership bill. The purchase price, resale value, insurance, financing, and taxes can matter just as much as the energy source.
For someone considering an EV in 2026, the most useful calculation is therefore not simply “How much will I save on gas?” It is “What will this specific vehicle cost me after charging, depreciation, insurance, financing, maintenance, and taxes are included?”
AAA’s latest data shows why that distinction matters. EVs have a clear energy-cost advantage in every category it studied, but the total annual ownership result depends on what happens to the vehicle’s value and the other costs attached to owning it.
In some categories, the EV comes out slightly higher, while in others, its emissions are nearly identical to those of a gasoline vehicle. The exact result can also vary significantly depending on the vehicle and how it is driven.
