Colorado still has a state tax credit for new EVs in 2026, and every current Tesla qualifies for at least part of it. A new Tesla can get a $750 base credit, and $3,250 total if its window-sticker price comes in under $35,000 — which, as of this writing, rules out every current Tesla trim.
How the credit actually breaks down
According to Coltura’s Colorado EV tax credit guide (updated August 2026), the state’s refundable credit for a new electric vehicle is $750 for any qualifying EV, plus an additional $2,500 — for $3,250 total — if the specific vehicle’s MSRP is under $35,000. The credit is based on the actual window-sticker price of the car you’re buying, not the model’s advertised starting price, and the vehicle must be titled and registered in Colorado, weigh 8,500 lbs or less, and have a battery of at least 4 kWh. There’s also an $80,000 MSRP cap, which every Tesla trim falls under.
The bigger number: Vehicle Exchange Colorado
If your household income is under 80% of the area median and you’re trading in and retiring a vehicle at least 12 model years old, Colorado’s Vehicle Exchange Colorado (VXC) program pays up to $9,000 toward a new EV on top of the standard credit — as much as $12,250 combined for a qualifying vehicle under $35,000. It’s need-based with its own paperwork, so budget extra time if you think you qualify.
What to check before you count on it
The federal $7,500 EV tax credit expired for vehicles acquired after September 30, 2025, and no longer applies to any 2026 Tesla purchase — the Colorado credit is separate from that and unaffected by it. Because the $3,250 tier depends on your specific vehicle’s actual sale price rather than a model name, confirm the number on your own order or window sticker rather than assuming a trim qualifies, and check Colorado’s EV programs page for the latest terms before you file.
Photo by Chris F.
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