Tesla Model Y Now Eligible for Federal, Provincial Rebates

model y canada rebates


  • Tesla Model Y RWD returns to Canada, priced at $59,990 CAD, making it eligible for federal and provincial rebates.
  • Canadian buyers can save up to $9,000 in British Columbia and $12,000 in Quebec, significantly reducing the cost of a Model Y.
  • Both Model Y RWD and Model Y Long Range AWD vehicles qualify for the federal iZEV incentives and additional provincial incentives.

Tesla’s Model Y RWD has returned to Canada with a price tag of $59,990 CAD, making it eligible for the iZEV $5,000 federal rebate and select provincial rebates, reports Tesla North.

The Model Y RWD has an estimated EPA range of 394 km, a top speed of 217 km/h, and can go from 0 to 100 km/h in 6.9 seconds. This version of the Model Y is said to have cobalt-free lithium iron phosphate (LFP) batteries which means it is produced from Tesla’s Gigafactory in Shanghai (the specs match the Model Y RWD in China). LFP batteries are more affordable but are less energy-dense, meaning less range.

By pricing the Model Y RWD below the $60,000 threshold, Tesla has ensured that Canadian buyers can take advantage of the federal rebate.

In British Columbia for example, an additional $4,000 rebate can be claimed, bringing the total discount to $9,000 and reducing the cost of a Model Y RWD to $50,990 CAD.

Separately, Quebec residents can combine the federal rebate with a $7,000 provincial rebate for a total of $12,000 off the compact crossover, making the final price $47,990 CAD.

Tesla website now states, “All new Model Y RWD and Model Y Long Range AWD vehicle purchases qualify for a federal iZEV incentive. Eligible buyers may claim one iZEV incentive per year, subject to availability. Additional provincial incentives may also be available.”

The iZEV program requires the base price of station wagons, SUVs, and trucks to be under $60,000, while higher priced trims up to $70,000 are also eligible for purchase incentives. The Model Y RWD’s introduction below $60,000 qualifies it for the federal rebate, and the Long Range model at $69,990 is also under the maximum MSRP threshold.

Since the Model Y Performance exceeds the $70,000 cap, it is not eligible for rebates.

Previously, Tesla offered the Model Y Standard Range in Canada in early 2021, priced from $56,290 CAD, but it didn’t qualify for the federal rebate at the time due to different program requirements.

Now, Canadian Tesla buyers have a new opportunity to purchase a Model Y with the added benefits of both federal and provincial rebates. Ontario still doesn’t have EV rebates after they were scrapped in 2018.

Below is an overview of EV rebates in Canada as of writing:

British Columbia:

  • Up to $4,000 in incentives for qualified individuals
  • Up to $3,000 rebate for businesses and organizations


  • Up to $7,000 rebate

New Brunswick:

  • Up to $5,000 rebate


  • Up to $2,500 rebate for individuals

Northwest Territories:

  • $7,500 for passenger EVs

Nova Scotia:

  • Up to $3,000 in provincial rebates


  • Carpool lane access only (Green Plate required)

Prince Edward Island:

  • Up to $5,750 in provincial rebates


  • Up to $5,000 for passenger vehicle models